Thursday, December 22, 2005

TASR(E) possible trend reversal?

$COMPQ late 2002, early 2003 market bottom

TASRE possible bottom

"Divergences between weekly MACD-Histogram and prices are the strongest signals in technical analysis... ALLY had managed to put in a bullish divergence of MACD-Histogram, a hugely powerful signal that is rarely seen on weekly charts." -- Dr. Alexander Elder, Come Into My Trading Room, Pages 132, 133

When I saw TASRE's chart this weekend, Dr. Elder's passage came to mind, and so did the bottoming pattern on the nasdaq's weekly chart in late 2002 and early 2003. Because of the multiple converging buy signals I put on a long position yesterday, and today it is up nicely. I wouldn't bother to post this, except for two reasons. I want to document this position for myself so I can easily refer to this possible bottom in TASRE when I want to see whether it worked out or not. The other reason is that if this really is a trend change, today's 10% gain will be a drop in the bucket. I wonder if TASR will have an echo boom similar to the nasdaq's 2003 rally?

Here's a recap of my reasons for buying TASRE:

  • I couldn't believe it when TASR became TASRE earlier this year. How the mighty had fallen, I couldn't believe it! But the reality is that TASRE helps insiders and financiers to accumulate shares cheaply. When the "E" dissapears off the end of the symbol, you can bet that the insiders will already have increased their stake and are ready to run it up. TASRE is a buy signal for me.

  • MACD-Histogram / price divergence on weekly chart.

  • TASRE made a higher low on the weekly chart and may soon make a higher high.

  • The price has already begun turning up from its higher low on the weekly chart.

  • There is visible accumulation on the daily chart over the past 3 months.

  • The nasdaq trending up on many timeframes, and at new 52 week highs.

  • There is a nice "wall of worry" to provide the uncertainty that fuels an uptrend.


At 8:16 AM, Blogger jontait said...

Ok I wasn't expecting the "E" to go away this very next morning, but I'm not suprised.

TASER International to Resume Trading on NASDAQ Under TASR Symbol

At 5:08 PM, Blogger AC Investor Blog said...


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At 7:03 PM, Anonymous Technicator said...

Hey Jon,
I think TASR can do it. I know it is one of your heroes. WIth Nasdaq potentially breakout out again, TASR can get a big boost from that. I wrote about it on my blog so check out the annotated charts.


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