Market watch for week 11/30 - 12/13/2009

[Dr. Dave]

Thanks Dave for your take on this....you mind posting a chart on this. I watched a chart video on qasp posted by a shrubber....talking about falling wedge patterns and upward trending macd lines....curious what your take on this is. I almost pulled the trigger today at .0165, but didn't. I've watched this fall for quite some time and am not going to take off anything till it's above my avg of .0229 PPS. Still holding ALOT Of shares and will shave some once we start to move up. Expecting a PR any day now on the supposedly 350 million funding deal, hoping the rise in pps is an indication that this is the real deal.

Andy

Sure, give me a few minutes (*boss is behind me).... lol.

[Dr. Dave]

Time for some DD that you guys do so well...

Find out what you can on these guys, I figure we have until tomorrow morning, lol.

ACTC
STEM
CRA
BTRN
MEDI
CCEL
ASTM
GERN

[Dr. Dave]

Ok Andy -

Was just saying that most would draw the blue trendline (the textbook real one - which is now old but still holds water is the green one) and that the price shot thru it on high volume today.

You can see that price tends to stop and reverse from either direction at multiples of 0.005

0.030 is one of the stronger ones, and it also matches the last fib retractment - so that makes it more powerful.

[Dr. Dave]

Only thing I don't like about it, is that it has that half cup shape starting after the beginning of august run, which still hasn't flattened. Today would be about the middle. Hopefully, it'll hold above 0.015 and above that blue line.

[Dr. Dave]

Tickers for stem cells... man some broke out pretty good today...
Anyway, Forbes kind of sucks, they put out tickers that don't work... unless the companies are gone. I trimmed and added to the list. Added results for a fundamental screen I ran. Looking not too great, but most of the low priced stuff we through money into usually has grades of F wherever I look.

ACTC Advanced Cell Technology
STEM StemCells C
CRA Celera D
BTRNQ BioTransplant
CCEL Cryo-Cell International
ASTM Aastrom Biosciences
GERN Geron C
AMGN Amgen D
GENZ Genzyme C

[Alaska Guy]

So if I understand your chart...support is at .018 and if that doesn't hold, the next support line is .015? First strong resistance is at .03...followed by .036....042 and .065?

Is shaving a little off at a time at these resistance points a good idea?

[Dr. Dave]

So if I understand your chart...support is at .018 and if that doesn't hold, the next support line is .015? First strong resistance is at .03...followed by .036....042 and .065?

Is shaving a little off at a time at these resistance points a good idea?

For you, I'd like to see it hold 0.018. When I draw a bunch of lines on a chart, I like to see if they get hit... so though 0.015 should be a support line, that one isn't very good, the prices don't tend to stop on it - whether open, close or high or low of the day.

So short term - there is a trading range between what appears to be

dammit - i over wrote a chart... hang on... let's go over if it runs first, hang on.

[Dr. Dave]

Ok -

I have this one... if this stock runs - by that I mean you get a real good candle tomorrow, then at least with this guy, it has a history of at least letting you keep a profit selling on the first day it closes down. Sure you don't get the top, but it's a nice exit. So if it goes on a tear, you can see if history repeats and get out EOD on a close down, marked with blue arrows.

If I don't know much about the stock - ie. the first run up - I scale out (or intend too - that's the tough part of trading right?) as it's rising, but in this case it has some history, so give that a go if possible. The sells at the end of the day are at the bottom of the red candle bodies.

[Dr. Dave]

Ok - if it doesn't run... here's the support lines as I see them...

Blue is first, the trendline a lot of folks are likely looking at, unless they are using a semi-log chart, which doesn't give much info, as prices get compressed. It would be nice, but not imperative, if the price holds that line. If it does hold, things are looking up.

Purple lines mark a short term trading range. Consider the boundries as where you want to see the price also hold up. If the blue line breaks, having prices above the top purple line is best, but it wouldn't surprise me to see it bounce in that range again. If it turns tomorrow and is in that zone intraday, I wouldn't sweat it, but if it closes in there, it's likely going to hang out there again. As usual, these are probabilities based on my opinion.

If it heads closes below that purple line it's bad. Worse would be a close below the red line. The next target after that is 0.005, which is a 50% loss at whatever your shares are worth at 0.010 - and it would require a 100% gain just to get back to the red line.

[Dr. Dave]

oh yeah, regarding that falling wedge - steep falling wedges don't usually pay well when the stock breaks out - I quit buying breakouts on those a long time ago... it doesn't mean at all that the stock isn't going to run, it's just not very predictive of a decent move. Flat channels or gently sloping triangles and wedges pay better.