VDSI 1-4-07 to 10-15-07

August 17, 2008

VDSI was a pretty clear cut CANSLIM long as it bounced right off the 50 DMA, broke out of a beautiful long term base and a short-term ascending base making it an easy choice to get long. Right after going long, the stock immediately shot up 20% which gave it a requirement that any stock up 20% in one week after your buy needs to be held at least 5-8 weeks. This only goes for CANSLIM stocks, not lower quality stocks. This stock was clearly a near-perfect CANSLIM long and I am disappointed I did not buy more but I was still in with a decent size position so I don’t have too much to complain about. As you can tell the stairstep the whole way up rode the 50 DMA like a champ. Ther were only a few times it tried to go below the 50 DMA and as you can see it showed bullish action both times it flirted with it. From the buy to the top, the stock gained 231% in nine months and two weeks. How could you tell it was topping? A weekly arithmetic chart clearly showed it going into a climax run and September and October started to see heavy distribution followed by lower volume rallies. These two tells after a 200% run are always going to be warning signs that a stock is close to a top.

the big buy:

vdsi1_4_07__Large_.PNG

the top:

vdsi10_15_07__Large_.PNG

Last 5 posts in Best of 2007

Posted by Joshua Hayes | Filed Under Best of 2007 

Comments

RSS feed

Comments »

No comments yet.

Name (required)
E-mail (required - never shown publicly)
URI
Subscribe to comments via email
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.

Categories


    Past Big Winners Longs
    Listed By Year


Members Forums

Popular Tags

StraightStocks Authorized Contributor Best Way to Invest ExpertSeeking Alpha Certified FeedTheBull - Top Stock market and Finance SitesTIMlinks
Disclaimer: Big Wave Trading and all services provided herein are for educational purposes only. Nothing contained within this Web site should be interpreted as a recommendation to purchase, sell or hold a security. All visitors and subscribers should always do further research before making a final investment decision. All subscribers must read and agree to the terms and conditions within Big Wave Trading.com. Any questions or comments may be directed to admin (at) bigwavetrading.com.