The target of 22 was met. Volume on Sept. 22nd is
twice daily average. Earnings up coming and IBM
announcement notwithstanding, 729 trades today at 890 shares
per trade, average, means the individual investor was
jumping in, feet first. Not a good sign. A move from 15
to 22 is approx. 50% return on capital in just 3
weeks. Annualized, you're Warren Buffett. Very good
short term trade. Very bad for near term. We're in a
bear market where alot of money is made, but no repeat
price movement ala Jan. to Apr. 1998. Have cash ready
to buy IDTC again in the coming weeks 18-20 range.
Based on my experience, I would expect no less than a $2.00 move based on their
recommendation. However, you never know for certain obviously. The stock has been up big lately so it
may seem unlikely, but there are many many people and institutions that ONLY buy after
they get a buy signal and or the stock passes its 50 day MA.
IMO the buying
yesterday was a result of the ibm deal. Traders and institutional buyers who subscribe to a real
time news service jumped in big.
As I said would happen yesterday, in my post 3636,
if we closed above the 50 day MA (21 3/4), buy signals would be generated
would be at $24 in no time". Consequently, IMO the buying today was from traders tha use the
passing of the 50 day MA as a buy signal.
The reason I said $24, was because I knew
that that would be the next resistance point. That is because just barely under $24 we hit
our 100 day MA and just at $24 we hit our 200 day MA. I'm sure you noted today that
several times we bounced off those numbers or just made it over and then back.
Tomorrow we get the Dorsey recommendation. The combination of that recommendation, an up market
and pre earnings buying could very well be explosive.
What has to happen though is
that we must solidly pass this resistance. From that point, there is little resistance
Now, having said that, if someone decided to short 300,000 shares tomorrow,
we're in trouble.
Anyway, no one knows for sure what will haappen ever. We just have
to do the best DD we can.
Best regards to all.
I thought earnings were to be released Friday?
That is what I saw on AOL online investor. Also, one
strong buy was already put
out on Friday or Monday.
If investor interest continues like it
the previous days and with the earnings, we should
$28 or $29 by Monday. Good luck.
It is not necessary to repeat all of
upside factors that i have posted
about previously. I
have the distinct
hunch that something very
is happening in support of the stock.
thoughts of a broader relationship?
that earnings could be
a surprise home run shocker?
shortseller covering because of
justified panic about the
of an IMB deal or earnings blast off?
now until the days after the
earnings figures are
have an undefinable feeling that
be a splendid time to
be long and the nightmare
hell to be short.
based on your experience, when would
the buy rec. would have
impact on the stock price?
if word got out? Tomorrow as
report comes out? Or does it take
more time to work
etc., to their customers.
Thanks for posting their chart. Just so everyone
knows though, Dorsey is doing a seperate analysis and
recommendation to ALL of their institutional clients tomorrow
morning, highly rec. IDTC as a strong buy.
should move the stock.
Dorsey Wright appears to be well regarded and
supplies many major brokerage houses, including DLJ,
Merrill, and Prudential. They appear to be primarily point
and figure chartists, a technique invented many years
ago but unfamiliar to most investors. I have use P&F
charting for many years. My experience is that it is not
very useful in picking absolute tops and bottoms, but
is highly effective in establishing trends, changes
in trends, and picking price targets. FWIW
They are highly regarde. Normally you could
expect a good move after they back something. However,
there is NO guarentee. We could wake up tomorrow and
find the markets in the tank again. I suggest you call
them like I did. I spoke to a gentlemen named Jay, who
was very helpful.
Looked at site. Gather they are chartists
providing information to institutions.
How have their recomendations performed in the past,
especially short term? (Like tommorrow)
With a 33%
run up in past 3 days I'm fearful of adding to my
position, although the 5 day chart looks good. What do you
Thanks for the info. I just brought another 5000
shares today. In addition, I placed a limit order for
more shares at 23.625... If the earnings are
spectacular, we may see an explosion to the upside soon. This
stock reminds me of AMZN. I brought it earlier this
year at $33.00 a share and sold it at over $100.00 So
I know what the internet frenzy is all about. There
is a good chance this frenzy might also happen to
Thanks for the good work and keep it
p.s. May I have your permission to email you(off
topics)? I don't want to infringe on your privacy...