3SOF

Hay Dave   heres the thing with this stock dnd ,,,, i get to watching the whole show yesterday,, and it drops, a little more ,and with lots of green ticks you know like hay  this guy should be moving up a bit,,  some more i think thats weird this stock has been in a pretty good trend. Then lots of up ticks but really not to many buyers,, then the stock goes up ,, around two  oclock or so i think , and up 8 cents a share. Then closes  the day down. Do you ever get a feel for something , like someone just played a game all day and tried to see if they could make the trend go the opposite way. At least thats my take on watching the stock the last few days, i did not sell the stock when up i have a good price , and the market pays if you get a stock at a good price, my gut tells me this one will bust up,,, but you know how that goes the market is never wrong.

Thanks for your message agatto2, I believe you're right.

DNDN is coming down to support, as I suspected. It's the reaction to that support that will determine the next big move, up or down. The ascending trendline today will come at $5.41. If the stock manages to rise without touching support, that's even better .... it's a good thing when bulls compete between themselves to buy and no one is able to buy at the technical support.

Trade the plan on DNDN.

JUST FOR THE RECORD:  From Harry Newton's Column-

How good are securities analysts? Most are not very good. Today's New York Times has a piece today:

An Analyst Receives a Time Out From Altera

For the 25 years that Tad LaFountain has been a technology stock analyst on Wall Street, he has often written negatively about the strategies or prospects of the companies he followed. Not once did a company retaliate, he said.

Until now.

Mr. LaFountain, who follows 21 semiconductor companies at Wells Fargo Securities in New York, said yesterday that he was dropping coverage of the Altera Corporation, an industry giant, because its executives had told him they would not take his phone calls, would not let him ask questions on analyst conference calls and would no longer give him the information he needed to analyze its business.

Why the cold shoulder? According to Mr. LaFountain, the company objected to his negative opinion on Altera stock. Before he withdrew his coverage, Mr. LaFountain had a sell rating on Altera shares.

Writing his final report on the company yesterday, Mr. LaFountain said he expected to replace Altera in his list of companies with one "that takes a more appropriate view of the role of independent investment research."

Out of the 21 semiconductor companies Mr. LaFountain follows, he has buy ratings on seven, hold ratings on nine and sell ratings on five....

In dropping coverage on Altera, Mr. LaFountain forecast a price target of $14 for the stock. It closed yesterday at $22.45.



Yup. You got it. The stock is way above his target and lately rising.

QuoteIn dropping coverage on Altera, Mr. LaFountain forecast a price target of $14 for the stock. It closed yesterday at $22.45.

Snowcat,

That downgrade looks like the Wall Street equivalent of a 3 SOF "smite." 

Thanks for your posts, interesting info.

DNDN is coming down to support, as suspected. Bulls should gather all strength to support DNDN where it should be supported, $5.43 for today. Expect a strong bounce if this value is reached.

If the stock ever closes below this ascending line, regardless of fundamentals or opinions, I'll be forced by discipline to sell the stock.

Quote from: Melf Elf on July 14, 2005, 04:05:43 PM
Sold DNDN at 6.01, for a 13% gain.  I don't like the two hangman candles followed
by a black candle on the daily today.  Hourly chart looks toppy.   

I'd like to buy it back at a lower price, but if I can't, that's okay.

When DNDN took off to $7 after I sold two weeks ago, I figured that I wouldn't get a chance to get back in, but the UBS downgrade has presented an opportunity to re-enter.

Possible support is at the 50DMA, 6.50. The high 6.30s should be very good support.  I show the up trendline a little lower than David, at about 5.37, but's it's difficult for us to get an exact reading on a log chart. 

DNDN is on my buy list if I can get it for 5.37 - 5.50, for a low-risk trade.  I agree with David; I wouldn't want to own DNDN if that up trendline gets broken on a closing basis. 

why not sell and re-enter if you expect the stock to go down to the trendline?

(this is no cricism.. just a real thing I'm wondering about)

The trend is still bullish nikao, and when the trend is bullish a big rally can come out of nothing. It is a risky thing to sell and try to buy a bit lower, you might lose your position and then have to chase the stock higher.

Keep the stock as long as it remains bullish, you never know when bulls will strike, it is possible they do it without notice or without a support being reached.

When a stock is very, very bullish it happens many times you can't buy at support, because there are too many buyers there and they start competing for the shares, putting up their bids.

For example, look at VPHM. I would like to buy it at support, but the stock doesn't come down to the technical support, demand is too strong !

Quote from: David Randolph on July 28, 2005, 06:42:38 AM
The trend is still bullish nikao, and when the trend is bullish a big rally can come out of nothing. It is a risky thing to sell and try to buy a bit lower, you might lose your position and then have to chase the stock higher.

Keep the stock as long as it remains bullish, you never know when bulls will strike, it is possible they do it without notice or without a support being reached.

When a stock is very, very bullish it happens many times you can't buy at support, because there are too many buyers there and they start competing for the shares, putting up their bids.

For example, look at VPHM. I would like to buy it at support, but the stock doesn't come down to the technical support, demand is too strong !

ok, i understand that.... maybe I have to reconsider my strategie for ADST today

Quote from Snowcat post 'An Analyst Receives a Time Out From Altera'

LOL, I spent the best part of 10 years working for Altera.

Anyway back to business.

DNDN bounced before support was reached. A truly bullish stock doesn't let investors buy at support, because of bulls competition for shares, as I've explained on previous posts on this thread.

Anyway, the ascending trendline today will stand at $5.45. My medium term target for DNDN is the closing of a gap at $10.26.

DNDN continued to bounce from the fall induced by the UBS downgrade. After all the stock didn't reach support, didn't let bulls buy at the optimal and obvious point. But DNDN now faces a minor resistance at $5.92, it is possible for it to retrace a bit and retest the short term lows around $5.56.

I hope not, but it is certainly possible, as the stock builds a base to move higher.

Anyway I will maintain my trading plan, which is to sell just if the stock closes below the ascending trendline (which today will stand at $5.47) or at the technical target of this bullish move, which for me is the closing of a gap above $10 a share.

Even I was skeptical about DNDN's ability to move higher short term, but it did. Another white candle, the third. When even a bull like me has so many doubts you bet all the weak hands are out.

For me I just have to keep following the trading plan and hold as long as DNDN closes above its uptrend line, which tomorrow will stand at $5.49.

DNDN will present results on August 8th. This won't change my trading plan, of course.

DNDN's price and volume has risen everyday over the last four days.

For today the ascending support will stand at $5.52, it rises $0.018 everyday.

A day without history on DNDN yesterday. Support today will stand at $5.54. I will hold the stock as long as it closes above this line, which it is almost at my buy point and rising everyday.