Wednesday, July 20, 2005

My strategy for DSTI this week


DSTI is by far my biggest position right now, the only other thing close after my selling today is sort of a defensive stock, UPCS. I've averaged up into DSTI twice since my original buy @ ~$12.90 on the first major pullback since the June breakout. That lower-channel line is how I'm going to play it too. I'll be very suprised if it doesn't break up or down big tomorrow. Obviously I'm positioned for an up move and I'll probably dump at least 2 lots if it starts breaking down on volume, but even if it breaks out to the up-side I'm going to be scaling back the position after a couple days.

4 Comments:

At 11:48 AM, Blogger Gordengekko said...

Jon-

Time to buy more XWG. Blue Skies as of today since we took out resistance at 9.40 today.

Gekko

 
At 12:32 PM, Blogger jontait said...

I couldn't buy more, it still doesn't feel right to me. I sold the rest of my position out today ~$9.40. If the eventual pullback looks good then I'll buy more, but right now I'm running for the exits in just about everything I've got. I figure there's probably a week's worth, maybe two weeks of life left in this rally, then short is the place to be.

 
At 3:59 PM, Blogger HulkHogan said...

Hey Jon, look at the JDSU chart when you have a moment. It appears to be nearing its MA, but I still am terrible at attempting to interpret this stuff. It seems like it is hanging around for maybe another break upwards (or down) but it's hard for me to say when.

-Matt

 
At 4:31 PM, Blogger jontait said...

Matt,

I already looked at JDSU earlier today out of curiosity, and you are correct, it has pulled back to its 10-day moving average on lighter volume. This is the 3rd buy point for the triple-cup pattern. If you aren't underwater on your original buy and you want more shares, you could put a limit-buy within a cent or two of the 10-day MA to average up into JDSU. Whether or not you add to your position here, I would be quick to bail out if it starts to get erratic and moves below the 10-day MA.

I should also say that I'm not buying anything right now, so if you do some buying, be careful, watch the nasdaq index.

 

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