Roy and All,
Market Makers seem to follow distict two day pattern very clearly indicated on 10 day graph on Lombard. Sure appears they have been trying to take it up since June 12th. Problem is the negative news that always seems to interupt an orderly ascent. Today's guess on a price increase - just luck. What an interesting last 6 trading days for PRST.
6-20...Thursday, Margin call...PRST hits low of 40 interday. Closes at 43 on heavy volume. Range 40 - 52. (Bought more at 48) Bad, Bad, Day!
6-21...Friday, Opens higher, then dips and touches 45, steady climb to close at day's high of 58. PRST defends Patents...and clarifies Cabot and small insider sale.
6-24...Monday, Gaped up on open at 62, Range 62 - 76, Closed at 75. NO news. A two day straight line on graph.
6-25...Tuesday, opened at 75, skyrocketed to 87.5...Traded in 81 - 83 range until WSJ-Cabot artical info out caused heavy short close to 4:00pm. Close at 68. Range 65 - 87.5.
6-26...Wednesday, MM's open at 55 on WSJ Cabot artical. (Cover 6-24 gap). Immediate STRONG support. Close at 60 on late selloff. Range 55 - 66. Another 2 day straight line on graph.
6-27...Thursday, MM's again open at 55. Again strong support. Range 55 - 67. Close at 66, near high for day. Range 55-67
6-28...Friday, With no new negative news, will guess a close of 72 + 6, to continue MM's pattern of 2 days straight line on graph. (Been tough to get a close above 70 though) Also, MM's have followed a proceeding up day when the stock closed at the high end of range, with a second day of similiar gain so we should see a good day Friday. (This is just a guess, as this is one stock no one should ever try to pattern or time.)
We are back to closing in the mid 60's, last seen on June 12th. Stock traded at that time in an orderly fashion gaining .5 or 1 point a day with a daily range of 5 points on lower volume with no news. Be nice to return to that pattern and allow this stock to cool off and begin a orderly climb. Those that short, find another target for a while. PRST will return to the 200 day support line of 91 soon. If you want to short at least wait until the stock gets respectful again!
Very interesting to listen to Lutt's of Cabot Letter on the hot line yesterday and again on his regular 5:00pm Thursday Update today. No response at all to the WSJ nasty artical. He is disturbed with the faltering two second indicator and that during the recent stock market rally, all readings but one are showing more than 40 new lows. The advance decline line also is bad. Advises 30 to 35 percent cash. Also advises that ALL STOCKS in all of the market letter portfolio's are rated a "hold" other than 4 stocks being sold for loss of momentum.
For the first time in over a year, Lutts is ONLY recommending just ONE stock as a BUY....You'll never guess which one!
Looking to again enjoy the weekend if PRST performs as it did last Friday!
Good Luck to All,
Neil |
