Forgot to mention that long term investors came out feet first only in the end. I#m not a bear, play the markets long/short but above all: discipline over conviction.
USAI is not EBAY by a longshot but it is another stock that I have deep affection for. The combination of EXPE, ROOM, Ticketmaster and the incomparable Barry Diller is the ultimate internet play, after EBAY of course. All kidding aside (not that I would kid about EBAY), the EBAY chart is kind of unusual. It's formed a high level base, normally a bullish formation, but the base has this weird two day island reversal right in the middle of it. That's the double top zboy is referring to, but I have some doubt there is enough separation between the "tops" to actually call it a double. The base got even sloppier with Monday's failed breakout and yesterday's breakdown. Still, it came back from the two day island break and the base is actually pretty tight, so it could definitely take another run at the highs.
Looks like failed "2B top test" as per Vic Sperandeo. Heavier down volume indicates distribution. Comments?
Classic stuff, AAA...especially about the used Saddam stuff being the next hot market... It's suicidal at best to short a strong uptrend...what I haven't heard is where your stops will be -- just so i know when ebay will get that extra push from you guys all getting stopped out. PS -- I haven't traded ebay in ages. i used to trade it about a year and a half ago when one could still momentum trade the naz and expect to make money. personally, i hate the stock and think it's way over-valued, but it moves up like a runaway train...
Stopped out on half my position at 88.23 for a one point gain. The other half will ride to a break even stop loss, at which point I'm out and will wait for confirmation of the double top to either hold or be broken, and will go long or short accordingly.
Bring me your EBAY. I want more. You can get Trader Vic's book on EBAY. Did you know it is the largest used car dealer in the country? It is killing pathetic rivals like Autotrader. Can you imagine when it takes over residential real estate too?
Now this is a thread that has true merit. I started a thread a ways back about why I thought ebay truly sucked and was overvalued, and someone made the point that they have the used car market pretty much locked up, which was a key selling point...
What was that, about 25 points ago? I wonder if that channeling stocks guy features EBAY? You see, some stocks travel in a channel. You buy at the low end and sell at the high and do it over and over. Except selling EBAY is a big mistake.