StockFetcher Forums · General Discussion · A Stock With Room To Grow<< 1 2 3 4 5 ... 6 >>Post Follow-up
JoeGrossinger
165 posts
msg #29612
Ignore JoeGrossinger
11/2/2003 9:00:21 PM

DCUT is one of those stocks that will make you rich if you are willing to take some risk.

All of what I am going to write assumes that it will do as most stocks in this situation also do. Nothing new is postulated and I am simply playing the odds.

DCUT looks to me like it is getting ready to finish the bottoming formation and will complete the W when it reaches .135 or .14
At that point a lot of TA folks are going to realize this stock could really move and will jump aboard.

This illustrates one of the problems all chartists face and why there most certainly and most possitively is NO PRECISION to TA.
It's the willingness on the part of some traders to anticipate the next leg be it up or down that makes any hopes of precision fruitless, but also at the same time rewards those that can see it coming and are aboard before it happens.
That is the essence of stock analysis. Filling in the foggy areas.
The fact that DCUT right now is in the process of completing a W on the daily chart is indicative of a bottoming process that is about to be finished.
You can buy now (as I did at .08 or wait until it reaches the .14 area to be a little safer.
I bought a tractor-trailor load of this stock at .08 and sold it at .12 all of which I reinvested at .08 again in order to maximize the return.
The risk is there alright, but the fact that it's selling near the volume bars and the fact that it's finishing the bottoming process makes DCUT highly attractive. I caught this with my filter MOAF and am going to ride it to at least .22
This is the kind of stock to bet the farm on. The likelyhood of DCUT taking a 60% haircut is almost nil, while the upside is wide open.

I don't go for obscure and obtuse triangle interpretations and testing theories. If a stock is testing it's not going up and I have no use for them.
I want stocks that either do a W at the bottom or a M at the top when I want to go short. Go for the obvious and let other folks pay for the obuse.

W or double bottoms are great for those that can see them early because you can load up and unload at profit a couple of times before the stock actually begins the long climb towards the upper right corner of the chart.




TheRumpledOne
6,358 posts
msg #29614
Ignore TheRumpledOne
11/2/2003 11:51:35 PM

DCUT showing positive divergence on RSI(2) and a DOJI occurred 2 days in a row. This could rocket within 1 - 5 days. Keep your eye on volume.

Something else to watch out for when trading OTCBB stocks...

If you see the Market Makers running the price up BEFORE market opens, be careful. BEWARE the POP and DROP!! A good strategy is to wait for a pullback and enter on the bounce, IMHO.

Next, learn which Market Maker is the AX in the stock. NITE is one of the biggest so keep your eye on them. I have never traded DCUT so I don't know who the AX is. Second guess would be SCHB. They are both $%^&*#%^&#!!




TheRumpledOne
6,358 posts
msg #29615
Ignore TheRumpledOne
11/2/2003 11:57:52 PM

Further study of DCUT's chart...

RSI(2) was 1.36 on 10-8. It went up the next day only to tumble the next. That is why you TAKE PROFITS!

RSI(2) was 4.71 on 10-14.

RSI(2) was 95.95 on 10-12. That's when you take profit again!

There more than one way to get rich... RSI(2) is just one of them!



JoeGrossinger
165 posts
msg #29616
Ignore JoeGrossinger
11/3/2003 12:12:49 AM

A nimble trader can multiply his or her gains several times by trading the stocks highs and pullbacks. It's also risky in that you can miss the train but initially the downside risk is low but the risk of missing the run away remains fairly high. I use RSI(5) and RSI(2) in tandem to try and pinpoint exit points but I can show tons of charts where a stock just keeps on roaring upwards even though RSI 15, 5 and 2 may be in the 90s. Nothing is sure in this game.
I don't know squat about mm to tell you the truth. I have concentrated on the charts, trying to stay with the major moves, staying alert to funny stuff reflected in the RSI, MACD and Bollinger bands. At times that causes me to bail prematurely, which is probably what the MM are working towards.



TheRumpledOne
6,358 posts
msg #29617
Ignore TheRumpledOne
11/3/2003 12:31:06 AM

The MM's are good at what they do, that is, making money off of traders.

One way to NOT miss the big run is to sell 1/4, 1/3 or 1/2 your position for a profit and wait. If it goes down, bail. If it goes up, you make more money. The key is NOT BEING GREEDY.

Trader's must learn to be happy with profit, ANY PROFIT, big or small. Because profit is always better than a loss.

I traded CMGI 10 times in/out on Friday. Each trade a profit, but only 1 to 3 cents per share on 5,000 shares. I missed the "big run" of the day because I had just sold my shares and CMGI never retraced. My mission was to TAKE PROFIT and not get stuck and that is exactly what I did. So the "human" side was mad at missing out but the "trading machine" side just waited for the next entry.

DCUT is under LR and in the bottom half of the Bolling range... room to rise!

www.stockta.com is BEARISH on DCUT

www.stockscores.com is BEARISH on DCUT

www.barcharts.com says to SELL DCUT

So contrarians would LOAD THE BOAT WITH DCUT.







JoeGrossinger
165 posts
msg #29619
Ignore JoeGrossinger
11/3/2003 7:19:28 AM

1. Avery, thanks for reading and taking interest in my post.

2. If we are not going to argue, then what's the point?

Just kidding. You raise an interesting point in mentioning that all is not rosie with DCUT and that there are plenty of negative views regarding this stock. Folks need to balance all that in their heads before taking the plunge.
Indeed, trading is a lonely undertaking because in the final analysis it comes down to the lone trader deciding when to pull the trigger and with how much.
In my case I have broken all of my rules and gone full bore plus.

Here is one interesting post I just ran accross:
investorshub.com/boards/read_msg.asp?message_id=1666743

I like this person's approach because he documents his argument with charts.
It also illustrates a totally different approach from mine because I inherently do not trust OBV because of Joe Granville's fall from glory due to over-hyping of OBV. That post is about a week old now, but his remarks regarding the weekly MACD are right on target. That indicator has given a positive crossing on the daily chart since then.
I take interest in this post also because of yours regarding MM dealings and am wondering if OBV might be used as a confirming indicator that also sheds a bit of light in the manipulation of OTC BB stocks.
Certainly I am not the only trader that has noted the double bottom of DCUT is about 3/4 finished.
That is not to say this is a conclusive signal to buy but I do rely very heavy on double bottoms and double tops. Generally the worst that happens is a stock may put in a triple bottom which usually results in a meteoric price rise shortly afterwards.
So for me the risk/reward ratio is totally in my favor in charts like this.





TheRumpledOne
6,358 posts
msg #29621
Ignore TheRumpledOne
11/3/2003 9:26:09 AM

"2. If we are not going to argue, then what's the point?"

The POINT, Joe G., is the same as it has always been...

TO MAKE MONEY.

The "arguments" were nothing more than "play" at best. More a waste of time/energy unless someone learned something.




ccdanson
9 posts
msg #29622
Ignore ccdanson
11/3/2003 1:51:20 PM

!!! did something freeze?

Thanks for the civil discussion.


TheRumpledOne
6,358 posts
msg #29628
Ignore TheRumpledOne
11/3/2003 9:01:17 PM

ccdanson:

Life is just too dang funny... you never know what to expect... just like a box of chocolates...LOL!


EWZuber
1,373 posts
msg #29652
Ignore EWZuber
11/5/2003 12:11:06 PM

DCUT does have some technicals in it's favor but the big negative is that the 25 & 50 DMAs are in such a steep decline and are stiff resistance.
Notice that DCUT has bounced down the last 2 days from the 25 DMA confirming it as resistance.
Even if the stock could manage to climb above these MAs there is little to no support above them that could hold the stock at those levels. So, IMO, the chart needs more work before DCUT can move sustainably higher.
This means that these MAs need to flatten out before DCUT can move higher.
An MA in a downtrend is useless as support because the stock will just ride it down.
A short term trendline has formed starting from the low on 10/14 @ $0.65 and is in a slight uptrend now with support at $0.77.
The stock is currently in a squeeze between support at the 15 DMA ( which is in a slight uptrend ) @ $0.92 ( & rising ) and the 25 DMA @ $1.05 ( & falling ).
Stochastics are rolling over.
Soon the rising supporting trendline will encounter the falling 25 DMA.



StockFetcher Forums · General Discussion · A Stock With Room To Grow<< 1 2 3 4 5 ... 6 >>Post Follow-up

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