DESC

[voova99]

Trust me, Trader

David like that company and that sector much!  
We need only right time to get in.
There is a lot of potential in DG (disributed generation) market!

Best,
Vova

[Dwer]

circa 7.49? That would project to +/- 3.33  , were the price would be supported by a  line that dates back to September 2004, in blue in the chart).

[robt]

For what it's worth, Cramer recently gave DESC a push in his "lightning round." This often brings in a lot of daytraders going after a cramer pop, often followed by shorts, but I think anything that brings more attention to desc could be the catalyst it needs to break out.

[robt]

And it's a BREAKOUT!!!

One of the charts below shows the very strong action near the close, looks like news is anticipated. Nevertheless, I took profits, selling about a third of my holdings before the black candle near day's end (I was holding about twice as much DESC as usual, so I'm still a bit DESC-heavy). Looks like it will continue tomorrow.

[robt]

DESC took a severe beating following the "breakout." Interesting chart shows a bearish engulfing candle, a further dive, and then another engulfing candle, this one to the bulls' advantage.

Today, thestreet.com, the financial site part-owned by James Cramer, added DESC to its portfolio of "Stocks under $10." Since Cramer recently said nice things about DESC in his "lightning round," it may be his next step to do a full endorsement of DESC on TV, radio, or in his column.

If that does happen, I will further reduce the number of shares I'm holding. A large crew of shorts work the market by trading off "the Cramer effect," which can bring short-term pain to longs.

[ScottishTrader]

However the current chart looks quite bullish, especially if the steeper trendline holds.  Even if it doesn't, the long term ascending trendline should do, and this line has been validated several times (see year plus chart). It looks like we are in the closing stages of an ascending triangle pattern, which, given volume, could follow through to the upside, giving a target of $9.50-9.80.

I wouldn't be surprised to see some upward movement to the resistance at $7.50 again in the coming days.  And perhaps Cramer's mutterings are what's needeed to break to the upside??  Let's hope the curse of Cramer doesn't come into effect once again

Anyway, here's the chart:

[robt]

You are so right, in fact 7.50 resistance is history, as is all resistance at an all-time high of 8.06 at close.

I felt compelled to take profits today. I'm now at half my customary hold for DESC, and will overload again if there's a significant pullback.

[ScottishTrader]

Gutted

Can you believe it??  I was so caught up with HYRF and HOM this morning that I totally forgot to check DESC for the first few hours, only to see it going crazy!  and after posting my plan last night too!!

So of course spent the day waiting for the pull-back that never came to get in and ride with it, and here we are, any kind of resistance is dust and we are over $8!! Unbelievable

Good job robt, I am right with you on this one, hoping we get a little pull-back to get back in on.

Man, what a messy day

[robt]

Yesterday was a very strange day for DESC. Yes the chart has been looking good, Cramer and thestreet.com have brought much-needed attention to this relatively unknown stock.

But there was that engulfing candle (as the chart labels it, "bearish harami"). The software for some reason does not see the bullish engulfment that followed. (?)

Like the two engulfing candles, all movement today was pretty much symmetrical, see-sawing in a pattern that seemed randomly variable, yet always in balance between bulls and bears, and we ended with a doji.

Yet after hours and pre-market saw the stock go up, rather straightforwardly -- notice also that yesterday's doji also started with a gap UP at a new high of 8.10. It closed slightly lower, after achieving a new 52 week high of 8.37, at 8.06, just 3 cents below the previous high, just achieved two days ago.

DESC has kept its gains, a very good sign. It wants to go up, but something held it back in market hours yesterday. Perhaps long daytraders versus shorts, or intraday swing traders, playing "momo" games, or maybe it's the MMs, but whatever it is, I think it's temporary.

I think it's "momo" players coming in for a quick trade and out, but the strength DESC has shown should now attract more long-termers, and even seduce some of the "momentum" crowd into playing this one for a longer term.

Most longs are aching for desc to release some positive news, which in these conditions would send the stock soaring. But I know this company -- they do not manipulate the share price with PR.

Having taken profits Wednesday, I would welcome an opportunity at "free shares" should the share-price dive. But I expect a positive day, and may buy back in at a higher level tp benefit.

[ScottishTrader]

Great post robt,

I'd appplaud if I could, and will do as soon as I'm out of the newbie woods Only a couple more posts and I'll be there.

I 'm a little happier as I managed to buy in on the pull-back a couple of days ago around $7.80, so provided we hold above $8 while the market figures out where this one wants to go, I will be happy.  I  expect that you are right about day traders and such playing with the stock - just see yesterdays late afternoon dive, but hopefully this should settle in the next few days, and we will start to see trading ranges that represent solid (hopefully upward) movements.  Had a good run on DESC last month when it was in 3SOF, and a little disappointed with myself that I sold out below $7.  But each trade is a new trade, the market never looks back and neither should we.

Will hold for my target of between $9.50 and $10 and see what it looks like it will be doing there.

Good trading robt, I always enjoy your posts 

[robt]

Thanks for the kind words. I have a warm feeling for anyone smart enough to see the value in DESC. In the AE sector, they are the "best of breed." Non-dilutive, with a functioning business on its way to profit, and in the two years I've traded DESC, I've always felt they gave high priority to the well-being of shareholders.

While there was more daytrading today, it was much more clearly a bull day. The chart now shows a clearly established trend toward previously uncharted highs.

[ScottishTrader]

Nice.

Just wanted to post the latest chart for trading monday.  Have a good weekend all

[robt]

Today, DESC made another new high, as anticipated. Looked strong all day, I expect continuation tomorrow.

[voova99]

I don't understand- why would I subscribe to 3sof if I may see
the open trades anyway for free???

Best,
Vova

[ScottishTrader]

Indeed, robt, another solid day breaking new ground 

All seems to be good, though we may want to keep a close eye on it as the RSI heads over 70, which could signal it topping out in the short term - bu then again, it has held very high RSI values previously, so I won't reconsider my position unless we see a clear pullback in the making.

As for your post Vova, don't forget that 3SOF has just changed over to a subscription based model.  What you can see are threads on trades that David has already closed out on.  While many of us continue to follow these, as many of them represent excellent fundamental stories, and have more gains to be made, what you do not have access to are David and Frederick's new picks, the stocks that they believe to be "on fire" right now.  For posts related to those, wyou will have to wait until they have closed out of their position.

Just a word to note though, while I haven't been here too long, what I have come to realise is that this is a very strong trading COMMUNITY, and we are happy to share our knowledge and analysis with each other, and if this helps others out, so much the better, but it is a community, which represents both give and take.

All the members here have clearly seen the value in supporting David and Frederick in their endeavour, and no doubt all of us (I hope ) have seen many times more than our subscriptions/donations in returns from their picks and analysis.  I for one am happy to support them with my subscription, because what I am doing is supporting our entire community here, allowing David and Frederick to continue to provide this incredible resource, and from now on devote more of their time to it.  I will happily admit that right now I only have 1 3SOF pick in my portfolio (and that has made me over 300%  ) but virtually ALL of my trades over the last couple of months have come from threads on this site - either from the 3SOF picks or from other members' analysis.  This would not have been possible without them.  In addition, I have learned so much about trading and the markets since I have been a member, and while I did not post much at first, my increasing confidence and willingness to contribute has led me to feel a part of this community.

If you want to be a part of the 3SOF community, benefit from all of the latest trades, and interact with other traders who are really willing to contribute ideas together, I would strongly recommend subscribing.  It is not the case now, but as things evolve with the site, it will become more evident who the community members are and who the leechers are, and I guaranteee you that as a subscribed member you will gain full feedback from the rest of the community, and that is worth so much more than just a few "stocks on fire"  (though the stocks on fire are pretty good too).

Anyway, enough of my rant, I hope that answered you (and anyone elses) questions about what the point of subscribing is

The Scotsman