Calm down; present your case one question at a time so I can address them all. But don�t throw 50 questions in hopes of making your side anything close to being strong.
First of all, I called that idiot an �it� for his language. I am not sure if you are purposely ignoring the way he expressed his most unfortunate case or not. But life has taught me that idiots such as him communicate the way they were taught by their parents. So, when I said I have no reason but to believe that he must have been raised in a zoo, I assure you I am willing to place some money that indeed that is the case for him. Furthermore, his writing style shows that he was physically and mentally abused and any common man with a cent worth of reasonableness can conclude the same from the way he wrote his posts.
Now to your post, on this post I will try to address many of your questions to make sure, you wouldn�t think I am ducking any of them. Then, if interested, I will discuss my investing strategy with you.
(1) People use charts to see about the life of the stock. And in my opinion only fools look at a chart and base their decision of buying or selling on them. Need I remind you, �it� was jumping up and down, throwing some big words, and even showed desire to bet on his case. Unfortunately, when I called his bluff, he disappeared. Again, charts remind me of drawings children make. I love to watch them, but I don�t lose the perspective.
(2) Response to your 4th paragraph: Companies didn�t get overvalued due to the way charts looked like. I am hoping you were not implying such a ridiculous statement. My opinion is that technology companies were new at the time and the traditional valuation was not proper to place a fair price on them. Therefore, as it should be, investors decided to determine a fair value on a price, by bidding up or down the price until the time where the price reached equilibrium. Again, it had nothing to do with any charts.
(3) Response to your last paragraph: Again, if you don�t trust Wall Street you must get out. I wholeheartedly believe in most analysts. Of course as is the case in every community there are good ones and bad ones. Further, there are agencies, which overlook the markets and assure the investors of a fair game. Now, having said, it is my honest opinion that winners in life take control of their own destiny. In other words, I am not going to worry what others do, I am going to make sure I know what I am doing. Thus, I can shape my own future. Be it good, neutral or even bad at rare times. I mean to tell you, stop being distracted by how a few get so greedy that they risk their whole entire life achievements and take a terrible risk and ruin whatever they have earned. Case in point, Enron and the people who were involved in it.
I hope this has answered your comments.
You seem to prefer to want to categorize people into 'it' or whatever you think they are.
In this entire exchange I have not discovered your investing rationale.
Why or why do you not own EBAY? What is your Investing 101 premise for investing your money in this stock and what is your time frame? Where do you see the price going?
Surely you can appreciate there are many 'its' that follow TA. Who do you think moves these stocks on a day to day basis? Whether or not you realize it everyone uses TA to an extent. Whenever you refer to volume or 52 week highs or lows etc. etc. you are effectively using rudimentary TA.
Once a trend is established sometimes they continue just because people see the trend in place. Why did tech companies get ridiculously overvalued 5-6 years ago? What rationale was there to invest in them and pay unheard of valuations? What could the layman investor have used to realize the party was over and time to pack up and leave without losing your shirt? Whether or not you can appreciate TA yourself it should bode well to understand many pros who drive these markets look at TA.
In terms of EBAYs earnings EBAY is effectively up a whole percent or so from the day of earnings. Effectively flat. For the last 2 months EBAY has effectively been going nowhere but sideways. A relatively strong earnings report has failed to move the stock over resistance. This has occured despite the Nasdaq making a new high recently. No one knows for sure where the price of EBAY will go but will you continue to hold should it begin to fall back to $35? Just trying to gauge your investment philosophy.
In terms of wall street yes there are scammers on Wall Street. The entire reason for their existence is to MAKE MONEY and that is done by creating volatility so that trading departments can rake in huge trading gains usually at the expense of the retail guy. They justify paying higher and higher prices, creating higher and higher expectations to the point where they are almost impossible to meet. It is good to see some companies that refuse to play this game that undoubtedly comes to an end and then started all over again. Investing long term you could effectively ignore day to day noise but you could also be holding a stock that returns nothing for years or worse loses for years.
Please don't sound uninformed or I would lose interest in this exchange. What do you mean by "scamming wall street"? How many of them have ever talked to you? How many have you investigated? What kind of a research have you performed to make such a general statement? My problem with "it" was his lack of understanding in Investing 101. Don't pull the same disappointment in me as "it" did. ok?
Your 2nd paragraph is so confusing that I have no idea about how to respond to it. Are you making a statement or are you accusing someone again?
When you talk about initial reaction to the earnings annoucement who are you referring to? Clearly the analysts were involved in the press conference and or were analyzing the press release. So are you refering to "it"s kind? The ones who have absolutely no idea about what investing is all about, yet, their voodoo charts orders them to take certain actions. Obviously the idiots who sold 15 minutes after the release, had no idea about what they are reading, so the price droppepd $3 in AH. When everyone had the opportunity to understand the numbers and listen to eBay management, they congratulated eBay management and that is why there were upgrades the day after and the stock gained over 7%. How can anyone with an IQ of grapefruit predict such a move from any of the Voodoo Charts? Oh, "it" did, didn't "it?
The more I read your posts the more I understand you are one of them too.
Be honest, how much money have you lost in following what "it" follows too? Be honest now.
You have what the company says but then you have what the scamming wall street analysts publish.
Ebay had great results. The reason we are under any pressure is because of expectations and whether or not these were met depending on who you talk to and which analyst is doing the talking.
Clearly there is much uncertainty given what has transpired the last few days. Initial reaction to the earnings was negative then the subsequent reaction was highly bullish and now todays hammering the other way. Maybe yesterday was a blowoff top?
So long as you don't write like that born-to-lose idiot, you will get my response, otherwise you will be ignored like "it" (that jerk).
Now, about the topic.
"Who to believe regarding earnings?" What does that mean? If you don't believe the given earnings are anything but truth, why do you even put your money in the market?
See? The problem with those jerks, (the it, you were talking to) is that they suffer from lack of eduction (Apart from the fact that they were raised in a jungle or a zoo, take your pick). When there is no education to base your decision on, then you try to take a short cut to level yourself with those who undertstand the real reasons for a given stock to move. And that comes from proper education, there is no shortcuts here.
"it" and "its" kind, are the last of the gang left from late 90s "which" used to trade on daily basis. And as history proved all of "its" disappeared. Why? Because they translated their luck into knowledge. LOL Funny? Wasn't it? Not only they paid back what they had temporary gaind, but they added interest to it as well.
All of "its" have now become dazed and confused. Still don't believe me? Listen to "it" again. With "it" all you need to do is to provide the rope. They all hang themselves on their own.
Born to lose, homeless fool, idiot, and just like your daddy did to you, I throw you out of this as well.
Don't forget to tell your Mom, it's 8 and this time she needs to be on time or I will send her back to jail, like last time.
Why do you keep going there. Many use TA as tool along with fundamental analysis, market analysis, economic analysis etc. etc.
Take EBAY for instance. Who to believe regarding earnings? Even then yo uhave to consider the valuation. Who says the current P/E is always going to be the same?
No, I think it is fun to look at charts. They look like drawings from children. It's fun.
But for a reasonable man, outside the idiot you are discussing this issue with, to put his money on a stock based on charts, is totally garbage.
Once again, to remove all doubts, call the price based on your Voodoo charts.