3 replies to this topic

[greenie]

DSL broke down weekly trendline with volume. Now watch the fun

Refer to yesterday's post:

http://www.traders-t...showtopic=67624

Did not expect it to happen so fast. Something has changed with this market. Glad that I doubled my stake yesterday.

http://bigcharts.mar...1&rand=8047.png


Also, notice the volume right around that line (~62.5 - refer to yesterday's post). It went down before breaking the line, because traders were trying to figure out, whether it will. After the line is broken, volume increased two times from rest of the day.


http://bigcharts.mar...&rand=9092&.png

Edited by greenie, 13 March 2007 - 01:26 PM.

[jawndissedi]

Something has changed with this market.

Impossible to know for sure, but if I had to choose one trigger, it would be yesterday's CSFB report on home builders which was summarized here by the much-admired "Tanta" on CR's incresingly influential blog. Note what has happened to HGX since the report was released.

Re DSL, I'm gonna stay short for a while on this one. My reading of their financials suggests that they have real problems that are as yet not discounted in the stock price.

[greenie]

Re DSL, I'm gonna stay short for a while on this one. My reading of their financials suggests that they have real problems that are as yet not discounted in the stock price.

When you read the company profile of a California-based company at yahoo and find the word 'mortgage' fifteen times, you know they have a problem. My only concern was that I was missing faster ones like LEND etc., but not any more


Funny, the things that take several days (retest of broken trendline) is happening in hours here.

Edited by greenie, 13 March 2007 - 02:00 PM.

[jawndissedi]

As I noted in a different thread yesterday, political risk is about to become a reality in this sector.

Bloomberg

That's right, folks, your friends in Washington are going to dispatch the tooth fairy to save you from the consequences of your reckless spending.

(Please God, let the bullz rally the subprimes on this story.)