Perhaps you are correct, and time will tell. The proper course of action in terms of risk/reward was to cover my short at $3-. I knew that. I have been trading on pure emotions since just above the $3- level, and I readily admit that is seldom a wise decision. It is just that ZNGA is a stock so easy to dislike. Leadership must come from the very top, and I find something rotten at the very core of ZNGA. There is also something hideous about the Zombie obsession of gaming addiction, and at the moment, that is the prime reason I remain short. This whole notion of virtual goods, like virtual sex, is just a fantasy. So ZNGA must rest its ultimate hopes on legal online gambling. It is really the only way out for this company. Having some direct knowledge of addiction, I can't jump on that concept either, and actually online gambling is a bureaucratic nightmare fraught with many perils. If I leave some money on the table, so be it. I still think there is a good chance ZNGA breaks the key technical and psychological support level of $2-. Yes, it could also accelerate back to $3.50, even in a brief time frame. I will be stopped out at that point, still with money in the bank. I am of the persuasion that 2013 will be a most difficult year.
There are still real companies producing real products which people pay real money for. ZNGA is not such a company. Some of these products provide real benefits to a society. I don't see that in Farmville and Mafia Wars. I don't associate with people playing that crap. Am I judgmental sitting on my little soap box? You bet your sweet bippy I am.