One of the most bearish signals that can happen to a stock is the "cross of death" (the crossover of the 50 down thru the 200). MAGS is a "short every bounce" play here for those who like to trade very small. I like to get in and out with $50k - $100K and the mm's for MAGS doesn't like that. But if you trade small, you might make out OK under the radar.
Believe it or not, the cross of death is VERY significant in regards to MAGS. Why? because it was trading laterally for such a long time (a base that broke down in a big way since the latest earnings report). Are you scratching your head as to why MAGS is unable to put even a "dead cat bounce" here as the markets soared higher to the tune of 300 points this morning? Heck, I'd vernture to guess you'de be hard pressed to find a stock this morning that wasn't in the green (except MAGS).
The reason why MAGS was unable to dead cat bounce was because of the massive technical damage that has been done to it. It's a dead puppy here, Ben. Charts don't lie. I know you'll be holding on for the rest of the ride lower and screaming it's a buy all the way down, and that's great. However, at $5.00, the stock will have to go up 100% just to get back where to the base it broke out of. A good stock to own here? Hardly.
MAGS is getting what it deserves...and it's been looong overdue. There is a reason why it's falling to new 52 week lows...and it ain't 'cause there's good news around the corner. Do yourself a favor and ask Habeeb and Co. why they aren;t buying shares "down here" if it's so cheap. You'll get a response similar to "Well, you know...uhhhhhh, we've thought about it.....uhhhhhhh, well, we can;t comment on that stuff. Top secret." LOL.
Only the weakest of stocks fall during a monster market rally...and they will fall harder when the markets resumes its correction.
Here's another stock that's falling today (hard to find them today)...and it's a garbage company that was shorted from the high $6's recently. Doing exactly what it should be today. Very easy to get in and out of.