3SOF

QuoteHow do you differentiate a breakaway gap from a "regular" gap?

A simple gap up occurs when the open is above the previous day high. A breakaway gap occurs when the stock jumps above a resistance level to a new relative high. You see, you have a resistance level and the stock opens above that, not even touching it, and never looks back to fill the gap (well, never in the short term  )

QuoteWhile the board is free (I'm also weighing becoming a paying member) - I'll guarantee your generating a lot of folks who stop in and take a look to see what your selections are. They may never even register, just read.

That would be nice KCScott, you still got about a month and a half to decide. Yes, we're getting about 7,000 different people visiting 3 Stocks on Fire everyday 

QuoteNot sure how old you are, but when I was a kid there were a series of commercials for a brokerage house called E.F. Hutton. The commercial would always be a large gathering of people (restaurant, ballgame, etc.) and then show 2 people talking. One guy would say to another "Well my broker is E.F Hutton" and the crowd would go silent with everyone bending an ear to eavesdrop.

Then the  tag line of the commercials in a James Earl Jones voice: "When EF Hutton talks - People listen"

Cool story  Never heard of it, but that's normal if you consider, not my age, but where I live, which is across the Atlantic Ocean.

Thanks KC, let's see if DESC advances to a new high above $7.5 ... where's randstory? I'm sure he's glad with the move on DESC today.

This is DESC's profile:

«Distributed Energy Systems Corp Formerly known as Proton Energy Systems, Inc.. The Group's principal activities are to design, develop and manufacture proton exchange membrane (PEM) electrochemical products for commercial applications. The PEM technology is incorporated in two families of products namely, hydrogen generators and regenerative fuel cell systems. The hydrogen generators convert water and electricity into high purity, pressurized hydrogen gas using PEM electrolysis. The regenerative fuel cell systems integrates PEM hydrogen generation technology with PEM fuel cell technology to create a power quality device that produces hydrogen from water and electricity, stores the hydrogen, and uses the hydrogen as fuel for the production of electricity. The products of the Group function as power generating and energy storage devices.The registered trademarks include Proton(R), Hogen(R), Unigen(R), Fuelgen(TM), Hipress(TM) and Transforming Energy(TM). On 10-Dec-2003, the Group acquired Northern Power Systems Inc.»

I have to admit, I know little about these issues. I don't understand the business, using electricity and water to produce hydrogen, then use the hydrogen to make electricity again? 

Perhaps randstory, being an investor in the company, knows more about their business 

This doesn't mean I won't make money trading the stock, at all. I know about technical analysis, and that's a powerful tool to make money in the stock market.

I could guess where the advance phase just started would stop, but that would be silly, only by luck I could sell at a short term top with this kind of technical setup (In fact I was lucky when I sold at $6.81, then had the opportunity to buy back lower today at $5.59).

If this uptrend is for real, this advance phase will take DESC to new highs above $7.50. If not, we'll know it if the stock closes below the ascending trendline, which tomorrow will stand at $5.35.

More about Breakaway gap:

http://stockcharts.com/education/ChartAnalysis/GapsandGapAnalysis.html

Hi, Dav:

   One questions about the tredline:

   Sometime, you use linear chart and sometimes use semi-log chart to draw trendline. Could you please tell us more?

   Thanks.

Hi, Dav:

   Perfect timing and re-entry point.

   Breakaway Gap usually not getting filled and the ascending trendline is right at it.

   Good trade.

I'm impressed! I just joined yesterday and your three calls for today are up! I'm in awe.

David,

  I am new writing to the board...two things really i was curious how I know you received your donation, nothing told me you did.

Also I know you will do your update on DESC but as an amatuer trader I have become somewhat discouraged almost believing I have a curse that when I buy something it has to go down...Is this just a slight pullpack before an increase next week or should I prepare for more loss. thank you.

Look at the chart above and you can get an idea if the pullback is normal and within this stock's regular pattern. I wouldn't worry about it.

Hey David, thanks for taking the time and interest to explain. I have 4 stocks MSPD, DESC, OPWV, and PETS.
with an initial investment of 18K however that is about down to 14.5K so a little frustrated. The stocks are not evenly balanced( probably my first problem)  I own some real estate and i am doing well but i wanted to try out stocks. I have come to trust 3SOF and the credible information this site provides. So all of this is a huge learning experience. I try to follow your guidance and if i lose then at least I learn in the process. The major disadvantage i have is i am currently in Iraq with the US Army. and checking on stocks and even this site becomes challenging at times. I try not to get discourage and drive on. I will offer whatever help I can even if minimal for now.

I continue to hold DESC based on your update and agree with the " position trader"  philosophy.  I will monitor the trendline and stick with your recommendation. Again thank you...

Thanks for your post and good luck for you patriotmp, you deserve it ! As a rule, and thinking of your portfolio, you should not hold more than 20% in one single stock, so to be fully invested you should need to have at least 5 different stocks. Don't be discouraged, not by your losses or by your lack of time to follow the market. You just need to read my updates everyday (with the market closed) and follow them and I'm sure in some time you will be in the green again.

I don't own OPWV now and don't like the stock. I don't own PETS but I like it. The other two I own and update the trading plan everyday.

Yesterday I've made these comments about DESC:

QuoteDESC had a perfectly normal pullback. Volume wasn't enough for a single reversal day to hold. What I mean by this is that usually stocks need to make a short term low, advance, and then come back to retest that low, or hold a bit above it, so a short term bottom is definitely put in place.

That retest isn't needed when volume is very strong, this shows bulls are very eager to buy and won't give a second chance to buy at a low point.

That wasn't the case with DESC, so the stock is coming down to probably make a second touch at the ascending trendline which today will stand at $5.40.

The stock indeed came down to touch $5.40 yesterday, before closing at $5.50. Now DESC has a better chance of starting a short term advance phase that will possibly end just above $7.5, the high of the year.

But I need to keep that safety net on guard, and the trend must keep bullish, so if the stock is set to close below the ascending trendline, which today will stand at $5.43, I'll be forced to sell with a small loss, respecting RULE 13: Take Big Profits and Small Losses.

Bought some at $5.65.

I am quite suprised that this site has followers from Iraq.

Actually, from what patriotmp is holding, I am not worry about at all. All four stocks are in uptrend:

MSPD year low is around $1.20, tested its low twice and has higher lows since July. It should go higher from here. Need some time.

DESC should also go up from $5.50.

PETS long term trend is up and now is in base building. It should go up after consolidation (this may last few months).

OPWV also is in long term uptrend. The recent pull bck is very small one. Its last pull back took 3 months. So, patient is needed to hold the last two stocks and make profit from it.

Good luck.

   Shawfund,

     Hey thanks man...always good to hear reinforcing words from others!.  I like keeping my mind on other things and the stock market does that well...looking forward to increasing my participation to the board.

Patriot

Quote from: patriotmp on August 23, 2005, 02:49:27 PM

   Shawfund,

     Hey thanks man...always good to hear reinforcing words from others!.  I like keeping my mind on other things and the stock market does that well...looking forward to increasing my participation to the board.

Patriot

Patriot,

I',\m somewhat of a contrarian on DESC - just believing it will consolidate a bit lower (at which point I will but) since the AE stocks seem to be out of favor on the street.

Whether, I'm right or wrong about the entry point, I think it's a great long term holding.

I also want to express my thanks for the job your doing over there.
We're proud of every one of you - God Bless and stay safe.

Best Regards,

KCS

As said, DESC is now much better positioned to start an advance phase. We got a short term bottom in place, now the stock needs to climb from this level.

The trading plan is simple, DESC is near a medium term support and should react positively to it, if it doesn't I'll have to sell. The ascending trendline for today will be at $5.47.

The stock was up 5% yesterday on average volume after touching the ascending trendline, so I feel confident about the bullish outcome for DESC.

Hi, patriotmp:

You should be very happy. All of your holdings are doing very well today.

At the time of writing,

MSPD: as high as $1.92
DESC: as high as $6.15
PETS: as high as $10.65 near year high
OPWV: $17.80 near year high

Good investing. Hope you doing well in Iraq.

Glad to see server returning normal again.

DESC gained almost 10% today. 

Oil sector strong, TA indicators all points oversold. RSI 25, KD oversold, price is just above breakway gap.

All give strong buying signal.

Good trade.