Gary Tanashian submits: On July 26 I wrote this:
I did rebuy today a nice "cleaner coal" play that I sold out of months ago due to Cramer/CNBC hype. I have watched the hypesters get bled out day after day, week after week, month after month as the stock settles into a strong support area and a nice risk/reward profile although as always, I am not expecting it to make a U turn simply because I am now aboard.
The cleaner coal (among other things) company is Fuel Tech, a stock I have long invested in, traded and watched. The stock did indeed U-turn for me and I have obliged by selling half my holdings.
It should also be noted that 2+ years ago I was sitting in this thing in the 5's as it seemingly never was going to go anywhere. That eventually changed.
I present this chart today as it is a wonderful study on how this racket works. I am by no means recommending this as a buy right now. You know I prefer buying when the frustro, pain and anger are high and back on July 26, they certainly were:
But here is an example of how patient you must be if you trade stocks. I loved FTEK, at least as much as I can love any stock, which isn't very much. When the Cramer hype hit, I had to sell (around 13), which sucked because this baby was my little undiscovered gem since the 5's. Then I was galled to see the thing continue right up to 18.
I waited months on end, always keeping FTEK on my screen and letting the chart be my guide. Anyway, also on July 26 I noted:
Added more of the cleaner coal guy as what has been the strongest sector of the market.......Anyone? Anyone? Bueller? Anyone? The Utes! The company does major business w/ utilities. Let's see, this company is profitable, growing, has a China growth angle, serves absolutely vital niches and has fallen back off radar even as dispirited holders contemplate capitulation near the bottom of a huge falling wedge and just above major support. This is how the markets work. I am not always right, but I sure do try to give myself the tools to be right way more often than wrong.
Just a little vignette on how you've gotta play this game. Have not decided yet whether to continue holding the balance of shares, although I have the ports pretty well hedged against a market decline for the purpose of holding longs.