Saturday, December 29, 2012

3D: Still Watching for a Double Top in Stratasys (SSYS; DDD)

On Dec. 21 we posted :
3D: Watching for a Double Top on Stratasys (SSYS)
Yesterday the stock hit its all-time high price of $79.45. This slightly exceeded the previous record of $79.25 set on Nov. 29. Although the usual double top pattern is for the second peak to be a few cents lower than the first the order can be reversed.

Here's the 3-month chart via Yahoo, $77.80 down 1.80%, last.

Chart forStratasys Inc. (SSYS)

On the other hand, stocks making new highs are one of my favorite trades (duh) because there is no overhead supply from folks "waiting to get back to even".
Plus the momentum anomaly, real if unexplained, see: 
"Momentum, rational agents and efficient markets"
Since then the stock has traded as high as $81.16 on the 24th and $81.99 on the 26th before getting as low as $73.88 yesterday.

Also yesterday it closed the day up 3.60% at $77.90 on a day the overall market was down 1.1-1.2%. That is serious strength.

Trading back through the $79-81 congestion would scare shorts witless and could pop the stock 10% in a day.

That $8.11 range between Wednesday's high and Friday's low is 10.97%.
These are moves you see in one of the most volatile commodities, natural gas.

Trading natural gas is called "The Widowmaker".

(okay, the Widowmaker term originally came from the March-April calendar spread where the premium/discount can swing 20% based on a couple weather rumors and you might see several swings from backwardation to contango and back in a week.. Now it is used to refer to the whole darn curve and any point on it)

As always when I start pontificating, remember this from a 2011 post:

Still on the come but the possibilities have serious people thinking.
SSYS is the symbol for Stratasys, one of the early stand-alone machine makers, which was first pitched to me back in the '90's for a couple bucks. It closed at $31.08 yesterday.
I never did do anything with it....

Dress made with 3D additive manufacturing technology