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Bolt (BTJ) had a tumultuous day today. closing at $51.53, down $(4.90) or (8.68)% on the day. In fact, after hours as I write it is trading down another $(.54) or (1.05)% on the day. And this on a day it was up 4% earlier on only to sell-off and take a big swing lower.
This is today's chart from Yahoo. It isn't very pretty :(.
But I say "Part 2" in my title because we had this exact problem a month ago. On June 8, 2007, I wrote up a note about Bolt because it was selling off about 8% in a single day. I wrote:
"Bolt (BTJ) is having a lousy day in an otherwise up market.
In fact, as I write, Bolt is trading at $38.01, down $(3.40) or 8.21% on the day. But why? The Yahoo Message Boards are busy, with apparent short-sellers trying to talk down the share price. The word according to these unconfirmed rumor-mongerers is that BTJ will be listed at a lower level on the IBD 100 listing that comes out each Monday in the Investor's Business Daily. But I don't see any confirmation of that either."
In fact, the Message Boards are busy again.
Let's take a look at the chart I posted just one month ago:
You can see the big price drop.
Now let's look at today's "point and figure" chart from StockCharts.com on Bolt (BTJ): (I have drawn in the 'rest of the chart' as Paul Harvey would say, after the last big correction!)
Will this happen again? Will Bolt turn back higher and go to $100 or is it heading lower to $25. Frankly, I don't know. My strategy is to sell portions of a quickly appreciating stock and I have done that already. I have sold portions of Bolt at 30, 60, 90, 120, and 180% appreciation points. I was nearing my 240% appreciation point sale when Bolt turned lower. If the stock declines to a 90% appreciation level for me that will also trigger a sale on the downside.
Meanwhile I sit tight.
The stock has moved almost vertical in appreciation, and it is to be expected tha the stock will move lower before consolidating and moving higher once again....I hope!
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