Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: wilywilly who wrote (7001)	12/31/2010 8:00:19 PM
From: SI Bob	Read Replies (1) \| Respond to of 34328

I was looking through picture files on my computer and ran across an old chart from 2007 of ACAS and used it to show a friend a perfect example of higher highs and higher lows and how if you draw lines right at these points and they hit the lines perfectly, holding when it's touched a line makes you a slaughtered pig or a stuckholder. The chart showed it violating the higher low line near the end of 2007. I pointed out the violation and said if you weren't out of the stock there you were probably going to suffer a lot. The violation occurred at about $37.50. And wouldn't you know it. Pulled up a current quote and saw $7.56. However, I also saw something else I thought I'd mention here in case nobody else noticed it. Look how tight the Bollinger Bands are. After a very long and steep uptrend. IMO, more often than not though the BB's won't predict direction but usually DO predict sizable motion, the trend itself tends to tell you which direction that motion will be. I see it at $10 by the end of January. Traded it ages ago. One could also argue that the (shorter-term) trend is down due to tax-loss selling and the movement will be downward. So if I had money in the market, I'd be using Feb OTM options, heavy on the $10 call side and adding 7.5 puts on any climb to take advantage of what I think will be pretty decent movement. Someone remind me in February whether I should be crowing or eating crow?