Buy flat base breakouts in a bear market ?

B

billpritjr

I have read mostly "no" to this question, mainly from the O'Neil / Granville / Weinstein / etc, school of thought.

My question is, in a bear market (which is coming, just a matter of time), if I come across another MAGS or IPIX, should I automatically avoid it or consider it?

Note:

MAGS traded 200 times its previous day's volume on B.O. day
IPIX 88 times

Both low shares outstanding

"World Climate" (security/terrorism) provided obvious catalyst

MAGS returned 300% in a few weeks post BO
IPIX returned 500% post BO

Again, if I have the "perfect" chart pattern, volume to confirm it, plus supplemental factors such as world climate / currency / oil prices / severe weather / etc, should I trade it?

thanks

:) :)
 
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