Thursday, February 26, 2009
AFLAC's Breakout Today
AFL had a classic breakout today from a falling wedge. Unfortunately it threw in a big gap and then it pulled back off its highs as the day went on. Unfortunately the market does not want to appear to want to cooperate and help AFL extend this run up. The market is in a throw to bottom out using wave 5 to make the possible final push to new lows.
I believe AFL will fight like a tiger, but will fail to the southern momentum of the market. AFL will need to fill that gap and possibly put in a back test of the channel or complete a dead cat bounce and put in the double bottom.
For those of you that do not know this stock, it is a powerful wonderful thing to have in a portfolio. One of the top 25 performing stocks of all time. The retracement zone will get covered, and I believe this one will recover faster than the general market. Even though it is an insurance stock and gets lumped with the rest of the bad boys in the index, it is a powerful earner that will make its earnings. I began accumulating at the 15.50 level and will add on any further weakness. I fully expect a double out of this one before the year is over. Just be careful near term.