DESC

[David Randolph]

I see the action on DESC yesterday as very bullish 

Not only because of the white candle with volume above average, but specially because the advance held in the face of a market that generally turned south. I see relative strength in this alternative energy play, I'll definitely continue to hold DESC.

[422fwhp]

500-Mile Russian Oil Pipeline Project Selects Northern Power for Critical Systems

http://biz.yahoo.com/prnews/050825/lath086.html?.v=22

[David Randolph]

Thanks for posting the news 422fwhp 

Taking into account the size of the business and the size of the company, the news isn't all that significant, but good news is always welcome.

Yesterday DESC had another white candle with volume above average, so everything is fine ... I expect the stock to break the 2005 high, which is $7.44, and that would trigger a technical objective of $7.44-$5.31 = $9.57, but it's still too early to think about that.

The long term can be a sum of many small short terms.

[voova99]

David

May You comment about insider selling last month?   

Best,
Vova

[robt]

David may wish to say more, but the 48,000 DESC shares sold is less than 1% of the over 5 million held by insiders. Meanwhile, institutional holdings are up over 6% (nearly a half-million shares).

Contrast that to Peabody Coal (BTU), insiders sold 25% of their holdings this month, and the chart seems to say why!

[David Randolph]

David

May You comment about insider selling last month?   

Best,
Vova

I've read Peter Lynch's book «One Up on Wall Street» last week, an investment classic. One of his takes about insider trades is that insider buying is important, but insider selling isn't reliable.

Insiders can sell for a variety of reasons not related with the fundamentals of the company. I want to thank robt answer too, DESC is up 3% now 

[voova99]

Thank You David and Robt   

[usedcasting]

Desc is down over 4%. Anybody no what gives?

[nightshade81]

usedcasting:

First, the whole market is down today, and market sentiment can squash even a strong stock from rising.  Also, look at the chart, 3 days of white with increasing volume and up about $1 -- some people are probably deciding to take profits today.  Looks like normal behavior from here, no need to worry at this point.

[rickjust]

hi,
i have been reading w.d. gann's 45 years on wall street and have been studying time and price.
i put together this chart on desc.
gann says: " when looking up dates for change in trend , consider whether the market has run from any high or low price 7 to 12 days , 18 to 21 days , 28 to 31 , 42 to 49 , 57 to 65, 85 to 92 , 112 to 120 , 150 to 157 or 175 to 185............." page 11, 45 years on wall street.
" stock market campaigns move in 3 to 4  sections or waves. never consider that the market has reached final tops when it makes its first section  in a move up because if it is a real bull market it will run at least 3 and possibly four sections............ page 9 45 years on wall street.
today looks like normal reaction with not too much volume......
i would love any one with more than my limited knowledge to comment on this chart and give constructive critique .
thanks
maxi

[Irishman]

Used-
  Rest easy. Today is Friday and for many traders that is also called Profits Day. DESC has had a good run this week so you have people taking their profits off the table. If David is right and this market starts to slow ( and by the way there are a good number of us who agree with him) , you'll see this occuring  more frequently. When you see this happening in the future always check the volume. If it is below average or average as it is today, it's most assuredly profit taking. All the best.
  Irish

[usedcasting]

Thanks for your input, all.

I show my colors to easy, I know!

Have a great weekend.

[David Randolph]

You guys already said it all on DESC, great 

That analysis is interesting rickjust, I've never studied or applied Gann analysis on my technical analysis. I like to keep it simple, because with too many indicators and theories, we can justify any position we please, and that's not good. But I have my ears and eyes opened to new technical analysis theories, off course I'm learning like everybody else.

Perhaps I'll buy a book on the subject, I'm curious about the accuracy of the time and prices analysis. Can you suggest one book on the subject? Thank you !

Coming back to DESC, nightshade81, Irishman and I have similar thinking: after a three white soldiers pattern, the stock opened with a gap up on Friday and simply couldn't hold those gains. Profit taking kicked in and the stock fell 3%.

Nothing to worry about, I believe. It was nice that the stock closed above $6.20, you see, that could have been the «shoulder level» of a head and shoulders top, but it wasn't ... DESC is on an uptrend and that will probably continue as we'll see new 2005 highs above $7.44.

The ascending trendline for Monday's session will stand at $5.60, I'll continue holding DESC.

[rickjust]

thanks for your reply,
i understand how one can get bogged down with too many indicators. i am very new to trading and i bought a system called "safety in the market" by david bowden from australia.
( i am from aust,)
he is a student of gann's . it is based on abc swing trading. he runs weekend seminars on time and price in australia but i am living in the states right now so haven't found anything here.
i know gann had a method of squaring time and price using the number 9 and i am reading jesse livermore's "how to trade in stocks" and he stresses the importance of finding the pivitol point of a stock  , low or high related to time and price.
i will post an article i found on the safety in the market website which deals with time and price on the stock talking thread. i am reading "45 years on wall street" wd gann ( tough going!)
for now i am having fun learning from you and others on your superb site hope to pay full years membership buy end of sept.
as for desc , looks like another down day mon. and then a resumption of upward climb testing 7.44.
thanks, happy trading
maxi

[422fwhp]

Up +4% PM