One point: Your TA is indeed fascinating and I wake up each morning to see how accurately you are calling it with SKUL.
But given the breakout above the 6 level, what are you expecting in terms of fundamental news when SKUL reveals its 3 Q EPS numbers at the end of this month or whenever they are released? Do you expect sufficient "good news" to support the pps breakout? What is the risk that if there is "good news" it will provoke the classic "sell on the news" and drive the pps back below 6 again?
And for a long term investor, which is what I am versus being a short term trader, (don't have the time or skill to be the latter) what does current TA tell us about SKUL as a long term investor from here on?
Incidentally, I was one of the lucky few who invested in SKUL long ago as a start up company, and disposed of most of my original investment shares at the IPO in 2011. Now I am wondering about whether the much reduced price (6 versus the 20 IPO price) makes it worth getting back in again. I know that head phone competition has become much fiercer than it was in SKUL's glory days, but their investment in gaming may be offering a good buying opportunity once more. Any thoughts?
I live and die by what the big operators are doing which I try to discern from price and volume action. If I get my head too deeply into the fundamentals it would affect my objectivity. So I choose not to do that. The big operators, aka the smart money, are better at that and have more intimate information; so I just follow them.
SKUL opened public trading with a sign of weakness and then went into a big distribution trading range and subsequently got marked down. Then it went into an accumulation trading range for 7 months between $5 and $6. Then it jumped out of that accumulation range with heavy volume.
Okay, so you were here. You saw all the activity on this board when it was being distributed and when it was being marked down. And then you watched the activity here slow to near nothing. Just a few posters every so many days. So do you think the sheep were buying under $6 ? No, the smart money was. And then they jumped it out of that range. This is the beginning of a mark up phase. Do you really think they will let it get back into the lower range? The only reason they would is to buy more. But dang, they've had 7 months to accumulate.
Your greatest profit potential and your least risk will occur when stocks are leaving the accumulation, or distribution areas or are very early in the trend, it is at this point where your profit risk ratio will be the greatest and you will be able to use liberal stops.