Looking For Trend Reversal By Intermagnetics

This daily chart shows Intermagnetics General (IMGC) in a decline since the middle of February. I never try to catch a bottom but wait for a sign that the decline has turned around. There are many indicators that try to measure these things but my favorite is visual inspection. In this case there was a more-or-less straight line down, and depending on how you read it, this downward trendline was broken yesterday or the day before. There is some art to drawing trendlines. The general rule is to follow the tops on a decline, but you get different lines depending on whether you use the February top or the March top, so I showed them both. This gave me the confidence to buy on strength early today, and so far it's working out.

I also bought 5 shares of Hansen Natural (HANS) early, based mostly on the subjective belief that a long-term winner is going to attract a lot of hot money in a rebound. So far today Hansen has been stuck in a range and I have a tiny paper loss.