Since I sold (ARST) for a 20% gain earlier this month I've been watching the stock closely. It couldn't have been any more 'by the book' in the way it's behaved. It advanced just over 20% from it's buy point and then began correcting. Over the course of a few weeks it pulled back to the 50 dma, on progressively lower volume. Once it reached the 50 dma it traded below it intraday a few times, but always closed above this level - a clear indication the stock is finding support.
With the stock acting so well I decided I would purchase it again on any big volume move up. This came around noon on Friday, as the stock exploded for a 13% gain. I got in a bit late around $15.60, but that's fine. I took my time and made sure the volume was coming in as it should. I don't worry much anymore about buying a bit high - if I'm right about a stock a couple percent here or there shouldn't make any difference.
The stock closed above $16 and I'll add to my position if it makes a new high above $17.26.
Market still looks good to me - closed up Friday on higher volume than Thursday with a powerful move in the last fifteen minutes. Still watching the Nasdaq 50 dma which could cross the 200 dma as soon as this week.
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Rule of Three's
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When I first started to seriously invest I thought that the only thing that
you really needed to do to be successful was pick a great stock and let it
ride...
16 years ago
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