Destructive Volatility

ANET had made 135% from its previous low. Then you see this chart. What followed was from end of Nov 2025 (chart) until end of July 2026 ANET only improved 5% from the high depicted in the chart. It saw a drawdown of -30% during the Nov-Jul timeframe.

Strong uptrends usually do not end within a trading day. The structure deteriorates. You have plenty of them to recognize this and act and protect profits.

1. Stock is still in an uptrend

2. Price still above a long-term moving average

3. RS deteriorates or becomes unstable. The green is fading.

4. Shorter moving averages flattening or turning down. SMA histograms becoming choppy, red or flattening

5. Price repeatedly crossing the short-term averages

6. Moving-average alignment becoming compressed or disordered

7. Price progress slowing despite larger price swings increased volatility)

8. A previous smooth trend becoming jagged

9. Volatility expansion (increase) during up and down days

10. Volatility regime moves to high (yellow) or extreme (red)

11. High volume on both rallies and declines

12. Heavy selling volume after breakouts

13. High-volume reversals

14. Strong volume without lasting price progress