Day Trader Always Lose in the End and Why Nokia goes to $4 just because of China
The action in the stock is typical of all the day traders taking profits. $3 has been the magic number for them. They will buy back in in the mid $2's and then get out again at $3. Eventually they miss the big move and never get back in. There are two catalyst at play that will bring that about. Oct 18th earnings and Q1 2013 sales figures. Nokia only needs to sell 10 million phones to get around $4. With the news of China Mobile and Verizon coming on board, that will happen easily. In China, they are working on 4LTE, should be done in 6 to 9 months. When that happens then Apple will be sold there. Nokia gets a big head start in that market. The largest market for growth in smart phones. Who cares how much the sell here, China and Europe cement their foothold and help grow the Asha brand too. Smart to make a variation of the 920 for China. Apple is arogant to not have done the same after China Mobile snubbed them last time and gave Android 80% market share. Now that market has two systems to pick from and no Apple.
Stay long and you will be thankful in the end. The day traders did the same thing to Sprint for over a year and once the gave up they missed the real profits. Not to mention the 40% tax hit they take all day long. I bought sprint at $2.30 and had to deal with a year up day traders jacking it around. Then the catalyst came in the earnings and in less than a month I win they lose. Come May, $4 to $5 in this stock. Then institutions might take an interest and move it higher.
I agree. Would not surprise me to see this action until Oct 18th. I am sure they will announce carrier and price points and release date soon and then it goes to $3.5 only to come down to $3. Eventually the day traders tire of missing out.
I'll join them and wait till we drop back down again. My nerves are absolutely shot from staying long and watching 50c swings. I disagree with you for the stress accompanied by watching this is INSANE! Hope you are right for this is a total dominated mkt by the shorts today!