(Click on image above to enlarge it.)
This is a monthly chart of Wachovia Corp with only the NMC shown to add a sense of drama to the picture. Here we see that the meltdown in this banking stock (which also occurred in other banking stocks as well) didn't come as a surprise to Ocean clients.
When a time frame a high as a monthly chart is signaling a Cross Kiss sell setup, the bearish implications are profound. Note that the Cross Kiss warning came as early as September 2007, with a potential entry (confirmed by other Ocean indicators, not shown) around $47.00, and an ensuing collapse that erased more that 95% of the stock's value over the next 12 months.
Also note that NMC performed well during the bullish euphoria that persisted throughout the prior bull market from 2003 through 2006, with buy setups and entries in March/April 2003, June/August 2004, September/October 2005, and May/August 2006 (magenta arrows).
Since the focus of this analysis pertains to the Cross Kiss sell setup, let's move down to a Wachovia weekly chart to see how Ocean formations were developing in the summer/fall of 2007:
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