Tuesday, October 13, 2009

Thanks CSCO!

Just sold STAR for a nice 30% gain after buying the breakout from a textbook cup and handle in September. CSCO is buying STAR for $35 per share. Of course, I had a doctor's appointment this morning and didn't see the news until 1pm, by which time the price had fallen to 33.90, but I'm not complaining. They don't all work out so well, but by keeping losses small, we only need a few of these to net solid profits.

5 comments:

dave said...

do these "Some Weakness Today - Key Levels" need any updating ?

dave said...

You're probably familiar with Chris Carolan. From his blog "We are awaiting what we believe is a reversal in U.S. stocks. Ideally, eMini prices will exceed 1075.75 either today or Monday. But if prices turn down without making a new rally high, that will not change our forecast. What would change things is a rally that continues into mid week."

I don't get "What would change things is a rally that continues into mid week." Any idea why ?

R. Craig Pritchard said...

On key levels, I am still comfortable with these until the end of the week for the intermediate term.

R. Craig Pritchard said...

I have studied Chris' work, and although his technical analysis using the net line buys and sells with the trix, etc is fine, I don't put much stock in his spiral calendar theory. Not because I am against the concept, but I purchased one of his books, and I was never able to forecast anything with it, unlike other work I have studied.

As far as mid-week is concerned that doesn't make any sense. This market could rally into early November and still satisfy the cycles and the wave count.

BTW, research is beginning to come out that the world is headed into a cooling phase, not warming. In fact, if we do not see a significant warming by 2015 much of the CO2 debate will be quashed.

I said this all along to friends and family, as it was clear that cycles were topping during this decade. It is no coincidence that the stock market has seen strong topping action as well.

dave said...

"As far as mid-week is concerned that doesn't make any sense."

Didn't make any sense to me either...except he was the only one saying it. And there are a lot of smart technical traders (& i don't say that sarcastically) looking for a top Mon--->>>Weds.

Btw, the mkt action yesterday was just sickly looking enough, too, to lure in more shorts.