DESC

[voova99]

I didn't expect the feedback like that ,Scotsman ! 

It was the pleasure to read your post.

It's indeed very good place with lot of experienced traders online,
and I want to thank David for interesting posts and great profit
that I did on HOM . 

Hope to be among subscribers in near future,
good luck and trading on DESC

Best,
Vova

[robt]

ST, you called. A retracement, giving back the last two days, and likely to do some gap-filling tomorrow.

I may lighten my position tomorrow AM, but will look to add more at the low.

[robt]

Decided not to lighten up. In the past, DESC sell-offs often have ended in the morning hours, with major gains late in the trading session. This AM, it dived to 7.80 but is now narrowing its loss. I still believe it is headed for new gighs, so I increased my holdings by a third.

We'll see.

[ScottishTrader]

Let's hope so,

never nice to see 10% wiped off in a day and a bit, but I am with you, and will hold for today.  I will sell if it breaks support at $7.50.

[robt]

The intraday was interesting, in that it traded green at several points, the last being at 3 pm, before an orderly exit by what I assume to be daytraders.

Since this is an energy stock, it's vulnerable to the selloff across the sector. But as an AE company headed toward profitability, DESC is unique, and I trust the market to recognize that, in the long run.

The daytraders aren't likely to be back tomorrow, unless as shorts, but I don't think a short strategy is an attractive one here.

I agree, 7.50 support is important, I will reduce my hold to minimal shares if it breaks.

[robt]

My beloved DESC! It is cursed by the horrid curse of the "Three Identical Crows!"

"The market is either approaching a top or has
been at a high level for some time. A decisive trend move
to the downside is made with a long black day. The next
two days are accompanied by further erosion in prices
caused by much selling and profit taking. This type of price
action has to take its toll on the bullish mentality."

I was prepared to pull the trigger at 7.50, as I promised. But my fingers froze! Then at that moment, I realized the truth....

I have fallen in love with a stock!

I know it is a forbidden love! But I cannot resist its pull!!!

Actually, what happened was, I was distracted by the action in KFX today, and whille I should have been selling DESC, I was loading up more KFX.

By the time I noticed what had happened in DESC, it had risen back above 7.50. It dropped again, but ultimately closed at 7.45. I decided not to take a loss over the matter of 5 cents. Not yet anyway.

I was no doubt influenced by KFX's 8% gain today. It, too, is an energy stock that has been stung by the energy sell-off, but it suddenly shot up on good news, and the same could happen with DESC at any time.

And now, a grim picture of my beloved:

[ScottishTrader]

indeed, I saw this one coming, and sold out at around 7.67.

I can't believe that I ended up selling out for a loss!!  Three days ago, this was the only positive stock in my bag, and I was a happy camper!  not so today, other big sell offs also hurt me bad, and I saw several breaks of key support.  Sold on this one and OMNI, which was for a MUCH bigger loss!!.

Here's hoping DESC will find support at the old ascending trendline - is a bit lowere, but if it holds there, it may be a buy again 

oh well, just gotta move on...

[robt]

I congratulate you on your discipline; I hope you can congratulate me as well, as it turns out DESC did not fail me.

Today's meager volume suddenly exploded at around 2:30 (5 minute volume @ 2:15 - 700; 5 minute volume @ 2:25 - 79,000), and the subsequent hod was 7.80.

It closed at 7.70. Even better, the after-hours high was 8.20!

The three identical crows formation may still have influence to be felt, but a gap-up and continued rally seems to be a near term likelihood.

There's been no news out, and I understand DESC received a mention on Cramer's radio show, so shorts may be out in force on Tues., in which case I will need to act fast to preserve the gains. (In fact, would have taken the AH 8.20 if I had been watching the tape today.)

Addendum: On Cramer's radio show, guest William Gabrielski, who recently added DESC to TheStreet.com's "under $10" portfolio, predicted a good quarter. Cramer responded that DESC is "rockin'"

[ScottishTrader]

Good for you robt, as I said.

Absolutely nothing was broken, just overbought, maybe cramer nudged it on its way for a tumble, and yesterdays market panic didn't help either.  The three crows got me scared and I pushed the button because I didn't want to see too much red.  In hindsight, I did not stick to my gameplan, which was to hold above the ascending trendline.

When you look at the chart, it retraced perfectly, and I saw it today, but already had put money in other picks from this morning.  But you're right.  this one was one to ride out, as DESC is definitely bullish short and long term.

Maybe I'll get another chance, but I doubt at this level.  Good luck robt, I gotta go work on my non-intuitive trigger finger.   

[robt]

Don't forget the Cramer factor. Immediate gains after a Cramer pick have a way of disappearing. Long-term holders hate seeing their stocks picked for this reason.

This could be a very easy swing trade for a while. load - unload - load - unload...you know the drill...

[ScottishTrader]

not a truer word said robt,

and I hope for your sake you got out of DESC first thing this morning.  Today's action was nasty   It broke the trendline on the log chart, but the linear chart sill shows a valid trendline.  However, todays red candlestick was a big one, and gives us a bearish engulfing pattern, which doesn't really add to the situation.  I know that DESC is in a much better position than other AE plays, but I just get a bit concerned that it could go the same way as BCON and CPST, but managed to hold its own longer.

I'd be very careful with DESC for now, and wai to see if it corrects this downtrend anytime soon 

[robt]

I had a stop on about half my shares @ 7.60, so the damage is not too great if DESC comes back as I expect it to. We'll see, I guess...

[robt]

After trading sideways a few days, DESC made an aggressive move up today, and is now just a little above my exit price.

AE is still not in fashion, but I still feel that news could drive DESC way up. Considering a small position here, especially if there's a sell-off in the AM.

[ScottishTrader]

robt,

I just saw this this afternoon as well - dunno if I'm up for taking another ride with DESC.  However, at least the last few days of sideways trading has created a solid base to move from.  Also things just suddenly picked up in the afternoon - was there anything out??  rumours???

Might have a little fish around

[cumulina]

Very nice move today 

Big block traded right at closing time.

Good interest: http://thomson.finance.lycos.com/lycos/iwatch/cgi-bin/iw_ticker?ticker=DESC

Yahoo message-board full of happy DESC-owners, hoping for news soon. 

Looking nice on StockTA: http://www.stockta.com/cgi-bin/analysis.pl?symb=DESC&num1=1&cobrand=&mode=stock

I'm a happy camper!