Sunday, April 13, 2008

DELL Computer Trade


I just wanted to put up this chart example of DELL for you guys to look at and get something of an idea of what I'm doing and looking for. All of my scanning starts out with technical analysis, and from that I build further lists based upon additional fundamental and technical criteria. For whatever reason though I do find that I'm not as profitable on the short side, especially when its with individual stocks, so the majority of my shorts these days (68% to be exact) are in ETF's not a single stock. The shorts are almost always at least 90% technically based, which is a bias I would never give towards T/A on the buy side. In any even, attatched is a daily chart of Dell Computer showing the daily chart for the past several months. The thing that to me stood out immediatly on DELL is that long period of sideways movement, a base for lack of a better word. It continued to make this base, trading sideways, even when the overal market would rally. We'd get a market rally and good ole DELL just sat on its butt and did nothing. This is a strong cue to a trader that he/she should put a stock on their christmas list and be looking for opportunity. I finally took my on April 4th @ $19.76 per share. Obviously this hasnt turned into a huge winner yet, but for a stock that I was able to get into risking about 30 cents, I'll take that every day and sunday. Any questions feel free to ask.

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