This one came under my radar again today. Almost bought at 6.30 and rose into the close. I look for more short covering and maybe some buying tomorrow bringing her to 7 and change. If not, she'll eventually tank off into the 5's. But a very nice bright spot today in the naz.
This is going to break down to 3.5. It looks like a little Technical Analysis paid off well here. The head and shoulders will take us right down to 3.5. I can only imagine how much money was lost among the long bets that were made here.
Not much in this thread I'm imagine. We're all mostly traders here. Holding overnight on this stock is stupid unless you're shorting. Good Call on the PPS Michael
Might try to catch a falling knife here if intraday low of 5.37 is tested. Only good for a quick trade with a tight stop.
Still dropping, just broke through 5. Why am I tempted to buy this? Anybody think with execution of June 7.50 puts and $5 puts will cause a little bounceback?
Now this is where the Technical stuff is of value. There is no news, so all movements have some connection with previous actions. This is where charting can be of help. At some point, there will be an upturn, and the large number of shorts will say "I should cover now, this looks like a bottom".
Tarl, The downturn was on 4 times the normal volume on no particular news. This means someone at a professional trading desk knows something that you dont and desperately wants out. They cant wait, they dont want to wait. I feel that the stock might upturn again, but what if the news that the trading desk professionals know is really bad. Lets say they make an announcement of bankruptcy, that Vince is resigning or that some substantial fraud has occurred that the SEC is investigating. My figures tell me that 3.5 is the bottom, however, I would not fade. I would wait for the following to happen: 1) Wait for the reasons of today's selloff come out and air themselves 2) Look for a rounded bottom or basing action. 3) Look for a true upturn on expanded volume. This might be a buying opportunity, then again, it might be a situation similiar to OPBL, TWTR or Bally's. All of those stocks traded at much higher at one point, but now are facing bankruptcy. I say to be careful about jumping in. When the stock does start moving up again, there will be time to jump in, but now the bottom can only be estimated through formulas of questionable theory. Listen to Jesse, only buy when the price is moving up.