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The Deipnosophist

Where the science of investing becomes an art of living

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Location: Summerlin, Nevada, United States

A private investor for 20+ years, I manage private portfolios and write about investing. You can read my market musings on three different sites: 1) The Deipnosophist, dedicated to teaching the market's processes and mechanics; 2) Investment Poetry, a subscription site dedicated to real time investment recommendations; and 3) Seeking Alpha, a combination of the other two sites with a mix of reprints from this site and all-original content. See you here, there, or the other site!

22 March 2006

Missing in action

What's missing? Volume.

[click on image to enlarge]

When a stock such as Garmin/GRMN (readers will recall my most recent purchase recommendation several weeks ago at ~$69) a rise in price but without the necessitous volume (NB: areas 3 in chart), then I am gone. Which means in this instance that as the shares near the original trading target of $84-85, I am satisfied with my profit, and sell. I have zero need to capture every last penny of potential gain, especially because price rises without volume at critical inflection points are setups themselves for sudden failure.

But that is a topic for a different post.
-- David M Gordon / The Deipnosphist

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