Remember the Seinfeld episode when Kramer compared a relationship break-up to tipping over a vending machine? His theory was simple … break-ups don’t ‘take’ the first time, much the same way you can’t knock over a vending machine on the first try. You have to rock the vending machine back and forth a few times to get it to tip over. And, you have to break-up a few times to finally make it a permanent break-up.Well, I think the analogy applies to China Energy Recovery’s (CGYV) impending breakout … it’s going to take a few tries before one of these breakout efforts finally sticks. In the meantime, it’s still rocking back and forth.

Shares did indeed benefit from Tuesday’s good news. The stock reached a high of $2.20 before settling back in to close at $2.00. However, $2.20 was the highest level seen since mid-November, and topped the peak of $2.19 made just a few days ago. The volume behind the move was outstanding as well.

Unfortunately, the bulls couldn’t keep the rally going on Wednesday. Like the prior surges, there just wasn’t enough follow through the next day.

Don’t give up yet though. Don’t even think about giving up. The fact that the bulls continue to step up to the plate after each dip is a very good sign. Eventually, that persistence should mean they can finally get this vending machine tipped over once and for all. It’s also worth pointing out the company has done a great job of producing a steady stream of good news to act as catalysts for these rallies.

Again, my line in the sand is $2.25, though I think the right thing to do is be an owner before that level is crossed - not after. If you wait until after it’s crossed, you may find you have to pay $3.00 or more just to get in. That’s the way these breakouts can work … in a flash.

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