While it is no secret the major players in this sector have been lowering their guidance on each reporting period and Barrons was quick to point out that 3-D systems (NYSE DDD) was "better at printing press releases than profits'' with the company lowering the bar repeatedly.

 

Barrons points out that even after the recent sell off (30% since the top) that NYSE DDD was still leading the pack with the most absurd valuations.

 

Our technicians with no knowledge of the article that came out today pointed out again on Friday that an interesting chart pattern was developing in the 3-D sector and notably NYSE: DDD as it is forming a distinguished bearish flag pattern.

 

As technical traders we trade off technicals and chart patterns. The bear flag pattern in this case has a measured move that will give our put options (disclosure: we are short DDD) that if the target is reached within our specified time frame will result in a triple of our investment shorting this stock.

 

We alerted our members in real time when we entered into our DDD puts position.

 

Now famous Whitney Tilson also has been pounding the table on this sector calling it "The DREAM SHORT" of course Barrons included Tilsons comments in their weekend report. Our members will be rewarded on Monday with phenominal gains as we use stock options to short a company rather than shorting the stock itself, using a well defined risk to reward strategy.

 

NYSE: DDD 3-D Systems closed at 67.31 on Friday (52 week high 97.28 vs 52 week low of 27.88, 30% drop off the highs.

NYSE: VJET closed at 34.19 on Friday (52 week high 70.00 52 week low 19.30 has had a 50% drop since the highs.

NASDAQ: XONE closed at 34.19 on Friday (52 week high 78.80 vs 52 week low at 27.60 has suffered a 43% drop since topping

 

In this recently hot sector the future remains less than certain in the 3D sector however as most new technology forms a bubble it isn't uncommon to see valuations come back to earth when all the smoke clears as investors focus on profits