Discussion in 'Stocks' started by ba3698, Jan 27, 2006.

  1. ba3698


    Huge short interest.

    Possible double bottom at $29.

    Earnings February 16th.

    Could see a nice bounce with covering if it can hold $29 the next few days and move a little higher.

  2. how do you define risk/reward, and establish a plan for trading Dell based upon the following observations:

    "possible" DB at 29
    "if" it can hold 29
    "could" see a "nice bounce"
    and move a "little higher"

    (by the way what is a "little higher")

    just curious why you posted if you seem to have no clear thoughts on how you would trade the upcoming earnings release. Can you articulate a plan? Or do we roll dice. If we roll dice - do we play the Field - do we place some dough on "COME to hedge?

    I have never learned about a "possible double bottom" in my training. I have heard about a "double bottom". But as any classic t/analyst knows the double bottom pattern cannot be described as simply two similar lows (or highs).

    >>You need certain volume characteristics.

    Further, one must see a reversal confirmation to a higher (lower) level above the intermediate peak (or valley) before the definition can correctly be applied. But I'm sure you knew that. Of course like with any classic ("possible") pattern formation, a trader can always try to finesse a trade and sometimes it will work out (i.e. they will luck out).

    And who ever said "luck" wasn't a huge part of trading patterns? ! :eek: :confused:

    So with the "possible double bottom" pattern you allude to, does a trader buy (sell) every single time the same or similar price low or (high) is reached, with little or no regard for volume or other characteristics (like symmetry) that may account for why said equity is at price level for a 2nd time?

    And by the way how does one position size "possible". How does one set up an exit strategy to scale out based upon "a little higher" or "nice bounce" ?

    Just curious

    bonne chance on Dell

  3. dell is dead.

    I, for one, welcome out new AAPL overlords......
  4. ba3698


    Entry at $29 - $29.10

    Stop loss around $28.70

    Hoping for shorts to cover before earnings. Just need a little momentum off $29 for shorts to realize $29 is the bottom (if it is). There is a huge short interest on Dell, so once it breaks through $30 I think this will be a nice momentum play up to $31-32

    Could see a 10% gain before earnings are released.

    I should also say I am long Dell, so my opinions are biased :D
  5. 1.3% of float is a huge short interest?
  6. ba3698


    I stand corrected. Thanks for pointing that out.

    I thought it was higher for some reason.
  7. ba3698


    Nice bounce off $29.20 today. There is a nice uptrend starting from yesterday's $29 low.
  8. I thik it is a excellent Short
    have been shorting it and make a little change
    To me it look very week :(
  9. ba3698


    Clear double bottom formed @ $29 as predicted.