RITA

[David Randolph]

Just 73,800 shares traded on RITA yesterday, and that provides no technical information. No significant news out either so everything stays basically the same on RITA.

The ascending trendline now stands at $3.51.

[Tirebldr]

In attempting to CHAT online this morning with RITA and other mkts, CHAT stopped working. I have not been able to get back online all day. Is the chat software down again? I have not been able to locate any problems with my computer.

Thank you

[Se7en]

In attempting to CHAT online this morning with RITA and other mkts, CHAT stopped working. I have not been able to get back online all day. Is the chat software down again? I have not been able to locate any problems with my computer.

Thank you

same problem here, it also didn't work for me!

[David Randolph]

In attempting to CHAT online this morning with RITA and other mkts, CHAT stopped working. I have not been able to get back online all day. Is the chat software down again? I have not been able to locate any problems with my computer.

Thank you

Good morning Tirebldr 

I believe what is happening is that the chat is working fine, but the sign that says how many people are on the chat was cut off. I remember Ramsburg saying something about this, it was corrupting some other things on the homepage. I'll tell him to fix this today, thanks for the warning.

Considering RITA, it was up about 1% on a bit higher volume. We've had a doji candlestick but that means only indecision, not a short term trend reversal. Anyway, there's no reason to change the initial plan. The ascending trendline for today stands at $3.53.

[bigdogs99999]

I never laud my own technical skills, but that chart has turned too red for me.  I smell a false breakout several weeks ago.  I sold my position, and the buyers were slow even when I placed a sell order at below the current bid.  Absent strong technical movement, I do not think that the fundamentals over the next 12 months (if projections are met, it is selling for 40 times the projected earnings for Dec 2006, and earnings are not projected to grow very fast at all) merits the opportunity costs of staying here.  Good luck to those who disagree

[David Randolph]

I never laud my own technical skills, but that chart has turned too red for me.  I smell a false breakout several weeks ago.  I sold my position, and the buyers were slow even when I placed a sell order at below the current bid.  Absent strong technical movement, I do not think that the fundamentals over the next 12 months (if projections are met, it is selling for 40 times the projected earnings for Dec 2006, and earnings are not projected to grow very fast at all) merits the opportunity costs of staying here.  Good luck to those who disagree

Thanks for your comments on RITA bigdogs99999 

The stock is indeed moving pretty slow. I own it since the 26th of July, and I'm bored too. But being bored isn't exactly a good selling motive. I figure that since I own it for so long now, it would be a big break in discipline to sell it without a strong reason, after all, the stock has a bullish trend.

I still have about 33% in cash so my opportunity cost isn't high, so I might as well continue to follow my trading plan. But I respect other views and attitudes, thank you for sharing yours bigdogs99999.

The ascending trendline for tomorrow will stand at $3.54, rising a bit everyday, I will hold the stock.

[David Randolph]

I have nothing new to say about RITA, volume is low but the stock is still trading above the ascending trendline so I must continue holding it.

For tomorrow the ascending trendline will stand at $3.57.

[David Randolph]

RITA = $3.78 > TL = $3.56 => HOLD

If RITA CLOSE < $3.56 => SELL

[ScottishTrader]

David,

Am a little confused, yesterday you said the trendline was at $3.57, today you said it is at $3.56.  Should it not be higher

Also not too keen on recent lack of activity on RITA.  Fundamental story still looks strong, but there's nothing going on.  Was some talk on the Yahoo MBs about news coming out in the next 6 days, but I know far too well that you have to take things said on these MBs with a serious pinch of salt.

Still holding and waiting....

[bigdogs99999]

David,
I am curious to learn ... when I see a stock like RITA that is not heavily traded (200k+ a day here) with a bit of a breakout on volume and then back to relative disinterest volumewise (here even lower than average) ... at some point I take that to mean a lack of interest from the market rather than a technical signal.  No one really cares -- okay I guess a better way to say it is that a couple of days of interest with no follow through is not a technical signal --  on RITA it appears (recognizing that there is a certain amount of trading that goes on simply because a stock exists on most issues because Timmy wants a new pair of shoes, or someone saw DNDN goes nuts and wants to sell RITA and buy some of it)....  Other than simply drawing a chart and going yes or no based on whether the price crosses the line, when do you decide you are in a dead money stock technically because of lack of interest?  For me, I look at the RITA chart for the past two years and could easily see a channel more than a year long.  RITA was about $6 in May 2004, took a nosedive, and basically has traded between the high $2s and $4 for more than a year ... that does not  a bullish trend make
Dave

[David Randolph]

David,

Am a little confused, yesterday you said the trendline was at $3.57, today you said it is at $3.56. Should it not be higher

Also not too keen on recent lack of activity on RITA. Fundamental story still looks strong, but there's nothing going on. Was some talk on the Yahoo MBs about news coming out in the next 6 days, but I know far too well that you have to take things said on these MBs with a serious pinch of salt.

Still holding and waiting....

Yes, it should. I don't know how I came up with $3.56 for today, perhaps I didn't put the mouse exactly on the right spot. Or, perhaps I accidentally erased the trendline (sometimes this thing happens with Metastock), and when I draw the line again it wasn't exactly with the same slope.

The stock was up 2% today, and that's encouraging. Volume picked up too. Probably our patience will be rewarded 

David,
I am curious to learn ... when I see a stock like RITA that is not heavily traded (200k+ a day here) with a bit of a breakout on volume and then back to relative disinterest volumewise (here even lower than average) ... at some point I take that to mean a lack of interest from the market rather than a technical signal. No one really cares -- okay I guess a better way to say it is that a couple of days of interest with no follow through is not a technical signal -- on RITA it appears (recognizing that there is a certain amount of trading that goes on simply because a stock exists on most issues because Timmy wants a new pair of shoes, or someone saw DNDN goes nuts and wants to sell RITA and buy some of it).... Other than simply drawing a chart and going yes or no based on whether the price crosses the line, when do you decide you are in a dead money stock technically because of lack of interest? For me, I look at the RITA chart for the past two years and could easily see a channel more than a year long. RITA was about $6 in May 2004, took a nosedive, and basically has traded between the high $2s and $4 for more than a year ... that does not a bullish trend make
Dave

Thanks for your post bigdogs, an interesting read  Let's focus on your question:

«Other than simply drawing a chart and going yes or no based on whether the price crosses the line, when do you decide you are in a dead money stock technically because of lack of interest?»

I decide that I'm on a dead money stock when the price trend turns bearish. You see, price is the most important thing on a chart. Second comes volume. If nobody cared the stock would naturally go down, stocks need sponsors to bolster their prices, but to go down ... they do it naturally when no one wants to buy (other than the ones you referred to  )

So, the first thing to consider is price. What is the trend in price? At RITA, it is up. The trading plan is based on holding the stock for as long as the trend is ascending, that would mean the market's perception of fundamentals is improving, and those are the kind of stocks a man wants to hold in his portfolio.

It's curious that, on a day you two wrote posts complaining about the lack of activity in RITA, the stock made a white candle, advancing 2% with the highest volume of the past 6 sessions. Maybe the stock is coming to life now, considering candlesticks and the trend we'll probably see news highs, above $4.2, over the coming weeks.

The safety net on this thread, the ascending trendline which is acting as support as you can check on the chart below, will be standing at $3.58 for tomorrow.

[ScottishTrader]

You are probably right David,

I suppose the problem is that especially on a site like 3SOF where there are a lot of stocks are making serious moves, it is difficult to maintain the discipliine to stay in a slow mover like RITA.  While the trendline is ascending at 3 cents a day, others like HOM have much steeper trendlines, providing the potentail for faster returns.

Having followed this one for a little while (I've been in and out of it twice now) and with very solid fundamentals, there is little question that she will undoubtably go higher, it may take more time than some are willing to give to see the gains.  Some good news would provide the impetus for RITA to make a break above $4, and we have seen that she can be a quick mover (see last gaining streak ) but at worst, this may not come until near next earnings, when we find out about earnings from Habib 4X.  Hopefully they will post some new earnings guidance before then though.

I am new to this game, and I am still working on the discipline to follow your number one rule: "Plan the trade, trade the plan".  But it can be hard sometimes...  So being back in the black with RITA yesterday seemed like a good time to try to execute some of my own plans.  Sold out for a VERY small gain.

Good luck to all still dancing with RITA

[David Randolph]

I am new to this game, and I am still working on the discipline to follow your number one rule: "Plan the trade, trade the plan".  But it can be hard sometimes...

Yes, it is hard, but it can't be done without it. It is more important to be always disciplined than to make money on the short term, because without discipline that money will be lost in the future, unfortunately.

The stock market game is a very hard game to win over the long run, I hope and expect you're one of those that succeed 

Considering RITA, the stock added another 2.85% on Friday's session. Everything's fine with the stock, slowly but surely climbing up to recent highs.

Of course, I'll hold RITA, one shouldn't let a profit turn into a loss, but there's wrong, quite the contrary, in letting a loss turn into a profit.

[David Randolph]

There were no new technical or fundamental developments today on RITA. The stock traded just 150,000 shares and declined a bit on profit taking.

The ascending trendline and the 50 day simple moving average are standing at $3.61 for tomorrow's session.

[coolwood]

Thanks David

Keep teaching us how to hold.   

Curwood