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!

25 April 2007

About to execute a Kilroy, part 2

In my comments reply to part 1 of this post, I stated, "I would watch trading activity if, as, and when the price clears $10.25/share. Does the screen suddenly light up like a slot machine? Is there a frenzied burst of trading? Is there institutional activity that manifests as large blocks suddenly crossing the 'tape'?"

Because that is precisely what occurred, I thought it would be helpful to show you how such activity appears...

[click on chart to enlarge]

The truth is that when you invest the time to learn chart patterns, you know how each fulfills itself; i.e., pattern recognition. And no longer must you wait wait wait for that moment of certainty; also known as a higher price -- as well as heightened risk and lessened reward. Today's action is a clear signal for a higher -- perhaps substantially higher -- share price for Isis Pharmaceuticals/ISIS.

Which leaves the sole remaining question: How I knew, in advance, the precise price level ($10.25) at which the heightened activity would occur. As Ben Stein famously said, "Anyone...?"
-- David M Gordon / The Deipnosophist


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