Is SNDK in the Accumulation zone? or is it just nearing the zone?

Quentusrex:

Check out 12/12 BullBoard 12:27PM post by optionoracle, it covers the table on your query.

Quentusrex,

I'm going to attempt to answer your question:
“Is SNDK in the Accumulation zone? or is it just nearing the zone?�
by looking at what the chart says too me.

First, realize that trading or buying at accumulation zones is an imprecise art (a guide). Now, on a weekly chart draw a trendline off the high of 79.80 (1/13/06) and connect it with the high of 60.94 (9/22/06). Now, on a weekly chart draw a trendline off the high of 62.24 (10/20/06) and connect it with the high of 46.98 (12/8/06). These lines would indicate that should this stock rally from here, one should expect resistance at about 54.85 to 55.26 which corresponds to the first trendline drawn and the 50 day moving average.

If the stock strengthened here ( today's price), I would want to be a buyer on the break above the second trendline and go with the flow. That's price telling you of a change, also look at what volume says here as a clue.

With respect to accumulation area, the stock broke out on 9/16/05 by taking out the previous high of 43.15 (11/7/03). However, the stock started rallying strongly on the weeks of 7/15/05 to 7/22/05 which led to the breakout. This is the area where participation/accumulation would have been best.

The price range of 33.47 to 43.34 is probably the area of accumulation, a -22.77% range top to bottom. Where one would begin to accumulate will depend on one's risk tolerance within that negative range. The best solution to me is to let price be your guide in determining your entry point/points.

I hope my summary is clear and helpful to you. Good Luck!

T3d

Quentusrex & T3D,

I looked at Bill's blog a year ago and waited "until the market comes to you" and made one trading cycle this year on SNDK buying last summer when it went under 40 and selling when it was under 50 a few months later. Didn't get the bottom, and didn't get the peak. Just made some serious money with thanks to Bill. I still maintain that the SNDK accumulation zone should be in the 30 -40 range, but for me its also a matter of how much cash do I have on hand and what are risks/rewards relative to other positions held. Sometimes timing works, but I must admit that there is nothing worse than moving out of a winning position and going into what becomes a loser while the original one moves onward and upward. I just know that over the mid term SNDK is worth more than 40 and much more than 30 so I can live with a near term losing position if I buy in the zone and see it continue to decline in the market. This is because SNDK is a quality ( Cara 100 ) company and HB&B is trying to shake others out of it so they can enjoy the benefits of ownership over the longer term.

Seems to me that trendlines are respected, except when they aren't. And, great fundamentals continue for a company great, except when they don't. I envy the relative certainty with which you guys speak!

Jock,

Not really Jock, anything and everything in between can happen!!!

I do however know the secret:

The secret is there is no secret!!!!

If you think you found certainty in my analysis, then I have insider knowledge of order flow and the ability to see 10 seconds into the future. You know why? Because that is all I need to become obscenely rich in this business. Just ask Goldman Sachs, they know.

Cheers, Jock