Last night I went out long DNDN.  At 8:30 AM I was down a cool $80 on my position.  Not exactly something for which to put down my breakfast Cliff protein bar.

DNDN had cleared an important resistance level on Thursday at 27.50.  It closed still in an intraday uptrend and 80c from its intraday high at 28.75.  Stocks like DNDN offer the possibility of gapping up after a day like Thursday.  So I went out long.

Steve started our AM Call and mentioned DNDN as a stock to watch today.  During the call DNDN went high bid 29.25.  Hmmm.  Then DNDN went high bid 29.33.  Hmmm.  I sold 100 shares.  Then DNDN went high bid again 29.47.  Hmmm.  I sold another hundred shares.

I mentioned to Steve this activity during his AM Broadcast and he sprinted right to the heart of the matter.  Steve said, “DNDN is starting to move up (and then wait for it……) but there is no volume premarket.”

DNDN traded above 30, and then  30.50, and then 30.70.  I dumped my stock into the move to 30.50.  Why? There was no volume.

When you watch a stock gapping up on the open do not trust the move unless it is partnered with significant volume.  I didn’t.  And you can see those were some pretty good sales there premarket for me in DNDN.

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