Comments on: “Be a $7 Venture Capitalist …” High Dividend Superstar

By: Steve Bell

Steve Bell — Thu, 15 Jan 2009 21:49:13 +0000

SageNot: Just a quick follow up to my comments of 13 Jan. HTGC bounced off 733 twice and rallied back up to close at the former support line (funny how those numbers work like that). The strength of this move today indicates good technical buying. It does not mean it is time to take a position since any good technical trader could have seen it develop and scalped it.
If it opens up tomorrow, and clears 8.62 on a close basis, then you have accumulated strength and a buy signal.
If it falls without rallying first, then look for the other numbers I gave you to keep it in check with 7.16 replacing 7.22. 6.58 should hold if the broader market falls, which I doubt will happen.
PS. I sold a lot of puts on the S&P today when it bounced off the retrace of support line going back to September. We may be seeing the beginning of that “Obama Rally” I keep hearing about. Tomorrow’s action might cue me to sell some more puts. If this pattern keeps developing, then based on price action at that time, I may be taking outright buy positions on a close around 880 area. A failure of the market to advance tomorrow would not be constructive to the overall pattern.

By: farley 5

farley 5 — Wed, 14 Jan 2009 18:59:57 +0000

Great questions. The BRL is the bearish resistance line. It acts like a brick wall. Every time the stock gets near the line, it is beaten back. RSP has the S&P 500 stocks as members but each stock gets one vote. The SPY is cap weighted so the top 40 stocks control the index. This shows the trend – lower tops and lower bottoms:

http://stockcharts.com/def/servlet/SC.pnf?chart=HTGC,PLUADANRBOPADF1!3!.5!!2!20]&pref=G

By: Steve Bell

Steve Bell — Wed, 14 Jan 2009 18:34:42 +0000

What is a BRL and how does one apply it to make this stock a negative trend?
Also, the RSP looks a lot like the S&P, which is down dramatically today, while this stock is holding steady.

By: SageNot

SageNot — Wed, 14 Jan 2009 16:54:31 +0000

We differ because you’re more of a momentum trader & I’m more of a swing trader (buy low/sell higher!)

HTGC is fundamentally the type of stock that you buy the dips, IMHO! Their divvy alone make that approach less risky, & the analyst community loves them, they have tremendous sponsorship for a venture cap ETF, especially in this crumbling market.

It s/b interesting if & when this market decides to level off & build their next base.

By: farley 5

farley 5 — Wed, 14 Jan 2009 16:31:09 +0000

You have plenty of time to see how this plays out. It is in a negative trend with the BRL at $9.00. I’ve been using relative strength analysis for over 29 years. The DOW 30 is NOT a good indicator. Use the RSP, the equal weighted S&P 500. The first triple top buy signal for this one would be at $9.50.