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  • tech_stock_technician tech_stock_technician Nov 16, 2012 1:38 AM Flag

    Why I'm not religious

    Finally!!!! Someone who is directionally agnostic and understands how to trade the market, and this stock in particular. How refreshing! Very nice synopsis and insightful assessment of the recent move in this stock. I did the same. I let the stock fall after the big earnings pop and started accumulating January Calls between 21 and 19, I saved some capital in case the lockup expiration would result in more selling and was actually hoping for a further down draft gift, but from the Chart, it appeared that the downside was already baked in pre-event and sure enough, on the 14th, the stock rocketed higher and the calls were deeply in the money. I suspected a bit of a pull back Thursday due to the explosive move on Wednesday and was tempted to sell some of the calls but held on. I agree that the move is not manipulation due to the large float. It's was likely a combination of surprised short sellers covering and institutions and hedge funds accumulating. The chart suggests that momentum should take this stock back to the previous trading range support of around 25.50, so I don't want to trim my long position until around 25. But if the momentum pushes it beyond that resistance, next resistance looks to be in the high 20s, then low 30s. Like you so aptly stated, the growth fund managers and hedgies don't care as much about valuation as they do about speculation and momentum and they have the capital to move stocks far beyond what most retailers like us expect, both on the way down and up. I'm glad there's someone on this board that actually has a similar view. Great call e_orton! I'll be looking for your posts.

 
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