SUNW

[Stocktrading101]

Jack,

Do you think this stock is gonna push over $4.50 or consolidate? 12/14 I guess could be considered a "sell off", but on barely any volume compared to what it has been trading. Looks to me that SUNW is hot. My worry is the 50 MA not close for support as both it and the 200 are still bunched together.

[Jack Haddad]

This is a delayed repsonse and I apologize. Let's review a very important technical indicator from 12/14/05. Sunw weakened the 3rd hour of trading on the hourly...lots of reversal wedge patterns were popping on my chart...those wedges took the stock down to 4.36. At that time,I began to seriously contemplate adding more to my postion. I didn't. Then, couple of junior fund managers stepped up the buying with bids of 4.35 on blocks of 60k to 90k. That gesture invited more buyers and the stock rallied to 4.43, and hung there till the close. The shorterm wedge reversal on the intra-day was short lived, and Sunw's uptrend remained intact.

Today's behavior remains unchanged. No sign of heavy selling nor signs of reversal indicators. I'm betting huge that my shares will be taken away at 4.00 as I stated in a previous email and that my covered calls will net me a nice premium.

Jack

[Jack Haddad]

Bought 50k shares of sunw at 4.30

[Jack Haddad]

Added 25000 shares at 4.17

[Jack Haddad]

Sold 25,000 at 4.21

[FirstConsul]

I think we'll go through 4.50 resistance. The partial decline to 22 day MA is interesting... Anyways, we'll wait, should be a great trade if it breaks out. Currently at 4.44

[Jack Haddad]

If it closes above 4.42 today, I'd be very happy. Thereafter, we stand a good chance to go higher, considering that the Dow has rallied nearly 200 points.

[Stocktrading101]

market's huge rally day yesterday only helps, I would bet a test of resistance here in the near future.