DPHIQ.PK

[David Randolph]

Delphi Corporation (DPH). The Group's principal activity is to supply vehicle electronics, transportation components, integrated systems and modules and other electronic technology.

The chart on Delphi looks like this:



From volume analysis and candlestick analysis I believe the stock has the power to run and fill that gap between $5.91 and $6.28. I believe the stock won't gap higher today so I'll probably buy at the open.

When I sell I'll just post an answer to this post. I hope the time to sell comes when DPH is at that gap area  

Everyday our team scans and filters 11000 stocks to come up with the 3 best stocks to buy on a short term basis. We run a diversified public portfolio which is up 4.35% this month (it started this month). If you want to join our community and receive our free newsletter, please register.

[David Randolph]

DPH

[David Randolph]

I know, I know, I've broken one golden rule at DPH: never let a profit turn into a loss.

And there are no excuses for that, I've broken a rule so I'm willing (and wishing) to pay for this !

Some people might say an average trader can set a stop loss rule and follow it, but an experienced trader knows when to take a loss. I still don't have a definitive answer to this - but I know a man can't lose more than it is reasonable, and that reasonable changes with the type of the stock he's trading.

If I expect a 100% short term profit maybe I'm willing to lose some 20%. But a man can't lose 20% on a slow moving stock that would take a month to climb that same 20% !!!

Coming back to DPH, it has tested support and reacted positively. I still expect the stock to reach that gap area, but knowing I'm breaking a rule here I might have to pull the sell trigger anytime.

[kfy168]

David:

DPH will go up for mid-term gain.  Just loaded it up at $4.54.

KFY

[David Randolph]

... maybe the break of a golden rule will bring me profits this time, which is always a dangerous psychological thing to happen. There are thousands of ways for a man to get lost in the stock market and it all starts when he breaks a rule (supposing he has rules).

So I'll protect my brain - and my wallet - putting an automatic stop loss on DPH. If the stock closes below $4.12 I'll sell that close, at any price and at any time.

Considering the upside I still hope that gap area will be reached.

[kfy168]

I believe by looking at the curve that it should go up next week.

[David Randolph]

... shows there's some indecision from players on DPH. Volume was a bit weaker than normal. Decision will come Monday for the short term but I'll stick to my plan and don't think too much about this stock.

The stock game is a simple game. It is a dangerous thing for a man to think or try to know too much.

[David Randolph]

That doji candle was saying DPH needed more consolidation. As I said I don't want to think too much about this stock, I have my trading plan and I'll stick to it.

[David Randolph]

... I'm glad I didn't thought much about the stock or perhaps I would had sold it 

$5.91 - $6.28 is the target area.

[David Randolph]

Bullish white candle on DPH. I wish she closes above $4.59 so I can trust that she's not only closing that minor gap. Again thinking too much. I have my trading plan stated above and I have nothing to do with this stock except following the plan.

[David Randolph]

DPH is away from the target area and away from the stop level. No brainer here. Holding the stock.

[wheezledick]

David, can a newbie ask a question of you? I don't even know enough to know if it's a dumb one. Is the chart you last posted showing a "teacup" pattern? If you have the time, would you tell me why it is or isn't? Thanks in advance. I have learned a ton in the last few weeks, using this site, and Yahoo's glossary of trading terms. If I run into something I don't understand, I just look it up.(and who said Yahoo was TOTALlY worthless?-lol) I'm SO glad I found this site.

D'Wheez

[David Randolph]

Hello wheezledick !

I believe you're going to be disappointed with this but I don't know what a «teacup» pattern is    So you should look on that great Yahoo website for that 

Ask all you want, I know a few things about the stock market ...

Considering DPH, these news came out yesterday during the session, I've heard them even on TV:
Delphi execs resign; audit on track

The stock went down on the news, but not so much as one might expect. I'm sticking with my plan and not paying too much attention to the news flow or minor technical information like the one we had today.

I'll sell if the stock closes below $4.13 or at the gap zone at $5.91-$6.28.

[wheezledick]

Sorry, I think I meant a cup and handle pattern. lol

[David Randolph]

Even a cup and handle pattern, I don't know what that is  But I never needed it anyway, so ... but when you find out what that is please tell me, ok? Thanks 

Moving on to DPH, I'm loving the market action. We get bad news and the stock doesn't go down, it even rises. That's a mighty powerful bullish setup. There's not much more thinking or analysis to do, this stock is going higher.