I can appreciate your points nassau but personally i don't think it's a good time to step up to the plate. The markets are skittish, traders are laying off risk and the risk of the "unknown" stills lurks beneath the surface of this story. While the best money can often be made be buying the panic and fear of others, this may not be the best time. Just my 2 cents. Good luck with your position.
Thanks for your 2cents worth. What you say/said has merit. I am thinking to low to fast. I am hoping that the math is much stronger than the rumor. You are correct what lurks beneath is creating fear but then again we really never know what is really going on within the companies we buy/short. hope your trades go well also w
All stock have support and resistances. Even if they are preceived. The stock showed a channel trading range with support 25 /resistance 30 dollars from sept todate..exception last two day. Obviously the history is short but a preceived support initially would be based upon information released in the ipo. I am hoping that not all information is inaccurate. First technical evidence ? is the psar at 12dollar range...Resistance would be harder to establish as it is a new ipo..support is math..now the math is in question but a 15dollar drop? that is what I am betting on. I consider this trade a 70/30 opportunity as some support was initiated at 12.79 be it traders dollar - 75 -50 -25 preceived better be there support / resistance thinking. w
If you see one ugly scandal, there might be a few more lucking behind those inaccurate financial statements. I just opened an account w/ Refco, but fortunately I haven't sent in any cash. I think I will hold off wiring my money to fund the account until things clear up a bit. A refco rep called "Vito" has been pretty anxious to get my account funded though. I was tempted to take a flyer when I saw the stock traded down yesterday. But today's trading halt spooked me a little, so I didn't pull the trigger.
my futures accounts are also segregated. what does that mean? i know it means segregated from company traded prop accounts. but does it mean they can't touch my money? under what circumstances could one lose his money in a segregated account? thats why few people put more than 10k in futures account. they're not insured
I notice the bottom fishers always 'picked some up at ' ________ . The blank in always 2 cents above the absolute low of the day.
Two that I can think of: 1. Fraud. The company misappropriates the funds in the customer segregated account. 2. Other customers blowing out their accounts. Funds are segregated from the company's prop accounts, but not from all the other client accounts. - Some firms have very low margin requirements, and some firms actually provide short-term credit for other institutions, i.e. the client institution puts funds up on T+1/T+2.
Refco tumbles again as scandal over CEO widens http://today.reuters.com/news/newsArticleSearch.aspx?storyID=82728+12-Oct-2005+RTRS&srch=refco
nassau you are over your head in this trade, you are trying to rationalize instead of getting out, you may get lucky this time around but you won't stay long in the market with such reasoning/ look at the chart at best this stock is going to stay where it is for months maybe years, and remember you have no idea if more revelations will surface , this is how company blow ups start