ADBL was another quick hit but that is, of course, some of the best longs as everyone should love to make some big gains and then get out near the top only to then move on to the very next one ready to act like that. ADBL was no EGHT but it still produced a quite large return in a very short amount of time. ADBL produced a 155% gain in a little under one month and three weeks. The gains are not anything substantial but the chart pattern was such a great long setup that I guess I can feel comfortable saying that it was “easy” money. I sure would love to see more charts like that in this market.
the buy:
the big sell/top of run:
REMEMBER TO SEE THE OTHER PAST BIG WINNERS, SCROLL DOWN TO THE BOTTOM OF THE PAGE AND CLICK NEXT. CONTINUE TO DO THAT TILL YOU GET TO WHERE I STARTED IN 1999.
ALOHA!
Josh, thanks for this recent addition to the Past Big Winners. A few things are really striking about this chart. First is the break-out itself- a 30% rise on volume about 7-8x the 50-day average.
Also interesting is that the lift-off came right from the 50-dma for price, after a few days where price drifted down to that level on very low volume.
These observations motivate the following questions:
1) There were two similar break-outs in early and late August following a few consecutive days of very low volume. Is there any reason why you passed on ADBL then but decided to buy the breakout in October?
2) Where, if at all, would you have considered an additional buy during this run. It seems that there was not one. But looking back, do you see a point that would have been safe, or did the rapid move make additional buys too risky?
1) Starling, come on bro, you should be able to tell those are NOTHING like that breakout. They are NOTHING like it. They are not bouncing right off the 50 DMA. Also do those look nearly as PERFECT as the one I went long?
Also look at where we are at. Do you think I was going to buy August when it looked the way it did? Look at all the other longs in 2003. Like I was going to buy that crap in August. It wasn’t even CLOSE!!!!!!!! to being a great long until I went long. I look at the LAME close in early Aug and the second move in Aug not off 50 DMA.
2) No where, or else I would have gone long. 🙂 You can look at the chart yourself and tell there isn’t any base long enough or anything bouncing right off the 50 DMA.