Market Watch for week of 7/06/2009

[Dr. Dave]

That is the exact reason. In addition, the base is holding really well for the low volume, which shows that people aren't turning over their shares like a stock normally would. There are a lot of people hanging in there. You always have the shakes that fall off of a tree.

Totally agree - I like the base, like I liked the string of tops on the upper end of BEHL.

[billhart22]

bill why do u always sound like ur putting down behl in some way? are u blind to the potential? are u blind to THE FLOAT of mglg 10 billion shares bill, gl getting that 1 off the ground, lol and its not fake pumping when their is real prgress being made, which there is. you guys got revenue, GREAT, your gonna need a ton of it with your 10 billion float.

That is why I congratulate people all of the time for making money with it. Congratulations to you too and I am glad that you are making a lot of money. That is what this is all about.

[billhart22]

IMO - its more like there were a ton of people with 1000%+ gains selling - like any other momentum rally. Good traders sell into strength, they write about it in books, but many don't like to follow the advice, as greed and wanting to get out at the very top keep them in. Once the folks with the big gains start booking real profits, the people who needed (less experienced retail and the like) to "see" the company's stock rise before they commit funds then step in and buy - so they don't miss the boat - and on hopes that "it'll go up again". You get a see saw after that. Those that bought the rally after it happened will likely lose in the short term, and can in the long run too. Those that sold into momentum have a real profit. If you booked a profit you did just fine, especially with these stocks. But if according to your analysis the stock is going to turn down, just sell it - preferably with a limit order. Regarding MM's - sure they exist, but that's just part of the game. There shouldn't have been people placing stops in a rally like that - just profit takers and hopeful buyers. Those that consistently argue that MM's consistently ruin their trades need to step out of the game, learn the game has risks (MM or otherwise) and how to play it, or trade stocks like IBM. You'll never be able to consistently buy and sell at peaks, remember that. You'll catch a few here and there, but consistently, no. So be happy about the gains you get. That and no stock will gain 100%+ day after day after day after day... so selling into strength isn't a bad idea.

Those are some really wise words! I can appreciate that!

[billhart22]

Totally agree - I like the base, like I liked the string of tops on the upper end of BEHL.

I watched BEHL all day today and I was amazed how it held. I thought it was going to sell off in the later afternoon, but it did really really good. About mid day it took a little dip, but recovered. After that initial gap up it dropped a little bit like I thought. I honestly didn't know where it was going, but wound up fine for the day. I wish that I would have picked up some, but hindsight is just that.

[Dr. Dave]

I watched BEHL all day today and I was amazed how it held. I thought it was going to sell off in the later afternoon, but it did really really good. About mid day it took a little dip, but recovered. After that initial gap up it dropped a little bit like I thought. I honestly didn't know where it was going, but wound up fine for the day. I wish that I would have picked up some, but hindsight is just that.

Yeah, me too - Like I said, I meant to put in a buy for after it started to move, but didn't get around to it.

Just to be clear - the tops I was referring to are on the daily chart - the 6 days following the peak on the 22nd. Following the peak on the 22nd, there was a weak reversal candle set up - like that on the peak on the 15th. Then they were both confirmed, which is why I got out of the BEHL trade. But once it held for 3-4 days, I considered that bullish. Try it out on that chartgame. ie. identify an intermediate term rally, get in on a pullback - preferably on a confirmed bullish candle set up, then sell on the reversal candle like those on june 16th and 22nd. Then if you were wrong, and following a spike you get 4 or so days of the price holding up, buy on the first candle that breaks out. With that game, I'm clicking as fast as possible, but that's one of the strategies I play - unfortunately, you can't sell directly on the candles like on the 16th and 23rd - as you would book a better profit. But give it a shot -and look for the long term support/resistance lines, particularly in prices that end with 5 or 0, cut out there too. It's a great tool for just learning how momentum works.

[tucknroll]

BigSandy, u might want to look at IGNT(i own, bought in at .0016), it seems to have some potential from what i have researched, and it definately has been good to trade around if u do that, i plan to buy more below .0080 as soon as i have more dry powder, as always do your own DD, just throwing it out there if u or anyothers are interested

[billhart22]

Yeah, me too - Like I said, I meant to put in a buy for after it started to move, but didn't get around to it.

Just to be clear - the tops I was referring to are on the daily chart - the 6 days following the peak on the 22nd. Following the peak on the 22nd, there was a weak reversal candle set up - like that on the peak on the 15th. Then they were both confirmed, which is why I got out of the BEHL trade. But once it held for 3-4 days, I considered that bullish. Try it out on that chartgame. ie. identify an intermediate term rally, get in on a pullback - preferably on a confirmed bullish candle set up, then sell on the reversal candle like those on june 16th and 22nd. Then if you were wrong, and following a spike you get 4 or so days of the price holding up, buy on the first candle that breaks out. With that game, I'm clicking as fast as possible, but that's one of the strategies I play - unfortunately, you can't sell directly on the candles like on the 16th and 23rd - as you would book a better profit. But give it a shot -and look for the long term support/resistance lines, particularly in prices that end with 5 or 0, cut out there too. It's a great tool for just learning how momentum works.

I am going to take a look at that. You have my mind churning now, lol! I have to go to work tomorrow and tear some tile out and maybe some sub-floor and replace it, put down some floor leveler maybe, and then maybe some cement board, then re-tile in a residence. The peoples' washer and drier are on the second floor and the spin cycle shakes the whole house. lmao. You know the spin cycle jokes I am sure.

[billhart22]

Hey Tuck -

Even though it wasn't addressed to me, thanks for the contribution! That is something fresh to look at!

[Dr. Dave]

I am going to take a look at that. You have my mind churning now, lol! I have to go to work tomorrow and tear some tile out and maybe some sub-floor and replace it, put down some floor leveler maybe, and then maybe some cement board, then re-tile in a residence. The peoples' washer and drier are on the second floor and the spin cycle shakes the whole house. lmao. You know the spin cycle jokes I am sure.

If you do play that strategy - I buy (hit the buy button) when I see the candle that confirms the reversal (hanging man/doji) set ups, but hit the sell button when I see the hammer/doji (don't wait for confirmation) on the sell. If it were real life, I'd buy toward the end of the day of the confirmation candle - which would give more oomph when correct, and sell on the man/doji toward the end of the day so I don't have to take the hit the following morning. Of course, this is for listed stocks. If the game was for the pennies, I wouldn't wait that long - ie. I woulda been out of BEHL today, even though another bull day or a gap and trap may come tomorrow.

[billhart22]

I still haven't looked at it yet, but thanks for the heads up. I was still grooving on boardreader.com That is a cool site...I thank you for the insight!