Discussion in 'Stocks' started by eagle488, Oct 26, 2006.
Christ... I read that as RVSN... phew....! What the hell, I'm in for 200 @ 3.52.
what is really said it why wasn't the stock halted..
what i personally find strange is some stocks get halted and others not.
rmbs, rimm, palm, tasr, nvda over the past few years have all been halted..especially if the stock is looking to move more than 5percent the key no. where stocks can be busted...
mean while..goog can run 40, rhat drop 10, lifc drop 10..
that is the problem with medical co.'s hugh runs and drops..
if you believe in the stock i would look at writting nov/dec puts as the before they have a chance to balance and you get a good value and will better your average and be paid for the position if you have the equity.
I don't belive in it except as a trade. got another 200 @3.55. It has a book value of 3.50.
I wouldnt jump in right now, like at this very moment. I have been punished a few times when I did that. On huge drops, I have learned to wait until the volume dies down to the average daily volume. When the volume hits the average daily volume, then we have some assurance that the sellers have left the building.
This process usually takes a few days, sometimes a week or more. Sometimes it works, but other times it may not and you get in on the higher price. I find that if I wait, its a safer trade all the way around.
I also like to see what the analysts have to say. The analysts are not dumb and probably more knowledgable on the situation then most regular people. They have a reputation that they will lose if their opinion proves wrong so their jobs are on the line. If all of the analysts still seem bullish, then this is clearly a positive sign. If the analysts now declare the stock is a sell, then you should NOT enter into the trade and move on to the next stock that takes a dump.
I do acknowledge that the analysts may, at times, not have the best interests of the stockholders in mind and may have their own agenda. However, we cant ignore their opinion, but at least read over their reports and see what they have to say.
I guess this is my safe strategy of entering into the stocks that have been asked to leave the Bulls Hotel.
It's not 401K material. My premise was 1. The 5 million shares short would probably want to cover at such a cheap price getting the base for the morning up a little and I think this happened. 2. 3.50 BV and 3.60 cash per share. A quick easy trade for a few bucks with maximum risk of $1500 if it went to zero.
Didn't your mama tell you not to play with knives?
Looks like it's working tho!
This is a good time for me to monitor this situation with the different indicators to see how I would pull off this daring trade.
I have the chart up with the Bollinger Bands, RSI, MFI and momentum.
I can see the downtrend in the early morning and then see where I could have entered in a little before 10:10. My guess is that the shorts probably started covering around that time with the volume kicking back.
Now I see the large green bar right before 10:20 piercing through the top bollinger band. The MFI is starting to point downward and momentum turning into the red. This would be a good time to exit.
Enter at 3.7 and exit at 3.8. 2.7% return on cash within 10 short minutes.
Thanks for the heads up, eagle.
This could be interesting.
Do they have any other pipeline drugs besides the now failed stroke medication?
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