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Saturday, November 25, 2006

Not bad for 1/2 a day's work...

Note - I did not actually trade this.

PNTR gapped up and printed a strong first bar. The second and third bars consolidated in the upper half of the first bar's range (note the lower highs and higher lows). The third bar was a narrow range, inside bar that had strong support from a rising 5MA.

Price rallied and the fifth bar blew threw the Fibonacci extension of the previous day's low to the OR high. And, as someone pointed out in "comments" yesterday, the upper tail (on the fifth bar) was a nice signal that the move was ending and it was time to sell.

Over 90% in less than an hour! I am sure someone is having a good weekend.




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12 comments:

Randal said...

X, was PNTR on your watchlist?

Trader-X said...

I don't think it was on my original gap list, but I don't track where they come from either. I think it showed up on one of my RealTick market minders.

estocastica said...

What an amazing move! The OR bar width was around 50%, so I quickly dismissed PNTR. One aspect I continually struggle with is how wide is too wide for the OR bar. I feel that I'm constantly working to find a method of judging the OR bar, such as comparing it to the previous week's price action, measuring the % width relative to opening price, absolute $ move, etc. I've garnered all of these methods from your blog (thanks!) but still have trouble knowing when to apply what method. I'm started to get a "feel" for what's too wide but still have trouble with borderline scenarios.

What are your recent thoughts on the OR bar width?

Trader-X said...

estocastica, I am paying less attention to the width, and more attention to how price moves/reacts in relation to the 5MA. Even with a wide first bar, if price pulls back to the 5MA and sets-up, it seems like a good entry.

John Wheatcroft said...

If you were on the right side of the mountain as a buyer and the left side as a seller you did fine- unfortunately this stock didn't come straight down and there was a whole lot of retail trade after the 25 peak. They are now known as "investors" or as they are called down in the brokerages - "bagholders". This stock traded 1.6 million shares Friday and 200 each on Monday and Tuesday. I wonder which way a "road side assistance" company will trade on Monday - any bets? There isn't even enough float to short the damn thing.

Trader-X said...

I agree John, that is why I posted the chart. The same concepts/principles/methods we use every day work to make sure we are on the right side of entry and exit. I feel bad for everyone else.

estocastica said...

X, thanks a lot for your response. I'll definitely keep that in mind.

John, interesting thoughts.

Stan K. said...

lol. I was reading your favorite ET, and some idiot posted he thought PNTR would hit 100 in the next few days.

There is one born every minute, and the bubble is growing fast.

Jim (L.A.) said...

If I had caught PNTR, I would have kicked in to Good Karma and bought the tad principle.

Trader-X said...

Jim - I can lead you to water, but I cannot make you drink.

Stan - quit polluting your mind with ET!!!

Eve said...

Trader-X, speaking of The TAD Principle, how do I get my $5 Amazon gift certificate? I ordered it last night. Thanks.

Eve said...

Whoops, nevermind. It was in my spam folder. I enjoyed reading it, thanks for the recommendation.