Symantec Shares Over Extended Again. February 5, 2013
Right on cue and totally predictable, once again this morning TheStreet editorial was pumping headlines and luring investors into Symantec shares - which are now again over extended, right along with the market.
Careful here, we saw what happened with just one negative day yesterday. The potential fall is large while any upside will slow coming as the big rally that started back in July is in the rear view mirror. The shares need to be driven and sustained by business and economic fundamentals in order to be justified and sustainable, and thus far both are unclear on a forward looking view.
There are some gaps that will be revisited, almost surely sooner rather than later, one this morning at 21.65 and another at 20.88. Anything over 22 is clearly an imbalanced risk vs. reward scenario at this time.
Forgot to mention: Volume is also drying up, right back to normal levels. Most funds who planned to enter have now done so. Those large inflows are what pumped and held the shares up the last few weeks, and with that momentum now having dried up, the downside support the fund inflow provided is also gone.