Buying in a panic lessons learned

Well, Marc Cuban just sent me an email. Yes he did.

The following stock I think just might have a panic. You see that big drop in March, thats the result of his first article. Tommorow morning will be the result of the second article. I have a feeling that at some point in the day this might just make a good daytrade.

Im guessing there is going to be a massive amount of shorting in the start of the day and then the cover will take place sometime towards noon. Any guesses?

http://sharesleuth.com/a/history-and-mystery/49/

 

Excellent trade Port. All might not agree with the method but the result is what counts.

I got into CFSG about a week ago when I noticed money moving into that group and exited yesterday for an over 20% gain. I'm pretty new to trading - who is Mark Cuban?

When you talk about a "cresendo low" I find this interesting... could this be where CMVT currently sits? Big volume yesterday without a huge price move and sitting at the bottom of a valley.

 

Look him up on wikipedia. He is a billionaire that made his fortune by selling broadcast.com to yahoo in 2000.

Im wondering why the Marc Cuban article had ZERO effect today. Last time it created a stampede to the doors.

There is the classic theory of "volume before price". Price becomes more volatile and tradable when there is an increase in volume.

In the case of CMVT, I dont think so. I looked at the chart and I dont think so.

See the reason why they call it the crescendo low is that they are describing to you a process in a way that you'll understand. The chart has to sing out at you like music, so, the crescendo low. There is also a crescendo high where a notable high is built up on increasing volume.

Take a look at this old SPX chart. Look at the relationship to volume to price. See how price makes those lows and the volume just keeps flipping higher. This chart sings like music. Thats the crescendo low.

http://tinyurl.com/5gzkno

 

I got some of that ultra-long spy sso today. Set my stop at 57.5. I think this is just a down-ward candle in the midst of an uptrend. I looked at the bullish percent index for SPX. The SPX is still oversold in my opinion and needs to go up more before the next big down-leg.

I like these ultra-etfs because they are easier to game then the individual stocks, but still give a nice return.

 

I bought the dip, and look at that fill!

 

Hello Port
I think that you were lucky catching this falling knife, but a winner is a winner, and there's not a trader here that hasn't relied on luck more than once.
I see BAC traded down to 30.64 so I presume that you are out?

I'm not with you on the technical analysis front. The $18 was a target, not a support level, therefore you should have been short into $18, not buying at the target price -how often does a market stop bang on the target price?

Also what you've drawn on DUG is not a triangle in the technical analysis sense. It is wrong on so many levels and if you can't see it I suggest you get a text book out and have a good read.

IMO you've been lucky but I hope you've banked your profit and rethought your strategy. If you didn't have a stop then that was plain crazy and you probably won't get away with it next time.

 

how can you guys be referencing buffett when making trades? he's often underwater for years. his timing is terrible.
he's said he often has 50% drawdowns

 

stick with ETFs, forget about individual stocks....the ultra ETFs are the only things I trade now, wait till end of 2008 when Direxion comes out with 3x ultrabull and ultrabear ETFs.

 

bwahaha i didn't see this garbage calling me out. glad you finally caught a winner port!

keep it up....maybe you can make back all that money you lost over the past 7 years or however long it has been.

btw i don't need multiple aliases since the only thing i do is rip on bs artists like yourself. you guys crack me up and i just love seeing what you jokers will say next.

i do plenty fine for myself and i don't need to be an elitetrader hero like you want to be.

 

Port what price did you buy DUG at???

I sold today and will buy back somewhere under $33. Im thinking the oil pullback could be about 75% done with and that any push near $130 oil, will push DUG back down to around 32-34 area. Bought DXO around $22.00 this week, thinking its headed for $24.00-$26.00 area.