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Frank started market timing in 1982 when the Federal Reserve cut interest rates and sparked the 1980’s bull rally. Realizing that this rally could have been forecasted, he began to search for indicators which had similar forecasting ability. Within a year, his first newsletter was launched,... More
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  • Shares of Dell Inc (NASDAQ: DELL) Could Go Lower Still 3 comments
    Feb 9, 2010 4:16 PM | about stocks: DELL
    February 10, 2010
     
    Shares of Dell Inc (NASDAQ: DELL) have made two important lows over the past three months. A break of either of these lows would result in considerably lower prices. 
     
    Dell has a huge share of the personal computer market and weakness in this company could be translated into weakness ahead for the entire technology sector.
     
    On December 9, shares of Dell reached a low of $12.74 in intra-day trading. On January 29, shares of Dell again declined to this level, reaching $12.75 intra-day.
     
    This makes a very definitive support level and one that has not been broken since back in July, 2009.
     
    Should Dell close below $12.74 in coming weeks, we would expect substantial selling to take shares much lower, to at least $12.44 and likely to the $11.35 level.
     
    Dell needs to close above $15.00 a share to renew its prior uptrend, something that appears unlikely in the current economic environment.


    Disclosure: No positions
    Themes: Dell Inc, DELL Stocks: DELL
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Comments (3)
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  • hey pops, two lows, the second slightly higher than the first, separated by a 20% price increase on high volume, and buying that resumes on even higher volume after the second low is called a ______________

     

    A.)trouble
    B.)short opportunity
    C.)whatever this guy just said
    D.) double bottom

     

    the answer is D, a double bottom. Dell will be 30-40% higher by June 1 2010. You heard it here first. I mean you could've at least written this article last week during the little selloff, but dell just closed above the 10 DMA on rising volume Monday, and is a technical thing of beauty right now, setting up for a MACD bullish cross AND an inverse head and shoulders bullish reversal if/when it breaks through 14.50 or so on strong volume--all this heading into earnings on 2/18. throw in a high short interest and you're setting up to be the prime example of why traders should fade every piece of advice they read for free on the net...except this piece of mine of course :)
    10 Feb 2010, 04:55 AM Reply Like
  • Author’s reply » DerekNJND

     

    I wrote: "Shares of Dell Inc (NASDAQ: DELL) have made two important lows over the past three months. A break of either of these lows would result in considerably lower prices."

     

    This paragraph acknowledges those two lows. I only said a "break" of those lows would lead to more selling. I did not say Dell was headed lower.

     

    regards,
    Frank
    10 Feb 2010, 05:04 PM Reply Like
  • OK--lets be gentlemen and look back at the facts, now that four months have gone by since you took the time to "gloom and doom" Dell. In that period, it rallied to a high above $17.50, almost a 50% increase less than 2 months after you gave us your "assessment." Hey, I get what you were saying, "if it breaks this low, then...".blah blah blah. If any stock starts making lower lows, which is a summary of your article in three words (LOWER LOWS = BAD) it has a better chance of declining further after that lower low. Thanks I guess? I just dont see the point of stating something that incredibly obvious
    25 Jun 2010, 07:11 AM Reply Like
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