7-29-2013 Comments

[Mike]

Pablo,

I am using TASR as my high-tight flag model for TSLA. Please see the attached powerpoint file that shows each stock on daily charts. Both meet the flagpole requirement of up 100% or more in 8 weeks or less. Both push the flag pullback a bit by exceeding the 20% pull back requirement. I have seen many work with up to 29% pullbacks. Both established a lower entry point than making a new high by establishing a lower resistance point. Both pulled back below the buy point and then went on to make new highs. So I believe that TSLA is falling within the parameters of prior successful high-tight flags. JDSU in December 1999 was a HTF that also shows the concept of establishing a lower entry point than the highest high.

Attachment 19355

I have also found a pamphlet that may be of use to you Pablo. The attached pamphlet describes high tight flags and ascending bases. If shows the requirements of each pattern as well as has many examples of each.

AscBase_HTF_Booklet.pdf

[barbados11]

Mike,

Thank you very much for this additional explanation. I was away yesterday afternoon through late last night. i will study the attached.

Best regards,

Pablo

[barbados11]

Mike,

Somehow I looked at all the examples including TASR in July and December 2003 and overlooked September. I'm not feeling too smart but better late than never. Thanks again for your kind help.

[MTman]

Mike,
I apologize for coming back to TSLA but it has been a great stock to learn from. One more question. . . in order to have bought correctly into this stock you would have bought when the market was in a correction. What are some parameters you have when buying a stock while the market is in a correction?

Thank you!
Mark

[Mike]

Mike,
I apologize for coming back to TSLA but it has been a great stock to learn from. One more question. . . in order to have bought correctly into this stock you would have bought when the market was in a correction. What are some parameters you have when buying a stock while the market is in a correction?

Thank you!
Mark

Oh Man! Do I get some tough questions here at times. Yes I do buy when the market is in correction but only when leading stocks are setting up an breaking out and a stock that I want to own breaks out. I wanted to own TSLA and it broke out before the market broke out. I decided now or never! These decisions seem tough but not really. Either it takes off or it doesn't. If it doesn't I exit, if it does I add to my position.