Now that GOOG is IBD #1 is it time for you to short the stock? I don't know if investors really take IBD rankings that seriously (I hope not). Was Friday's trading of CUTR an abberation, or a sign of things to come?
I believe there are way too many shorts in the market and they have been making good dough for a long time. However, the market is going to correct the other way, and probably overcorrect (It usually does). This means a powerful bull market for the first 1/2 of 2006. This means that PE of growth stocks will not have as much meaning as they normally would.
Looking at the chart, CUTR looks like a good short play. This stock has gone up quite a bit in the past few months and is due for a pullback. Will the pullback be significant enough for shorts to make money? Or will the pullback be a hiccup on the way to $50, $60, $70?
I think that CMED and HLEX are better short plays!
I wouldn't short google yet - it is as we discussed a very different animal.
It may be getting overextended, but is so huge and dominant that it is very hard to model or understand. I do not know about FLEX, but I would be wary to short CMED now. Imagine that there is a bird flu epidemic, or a strong fear of it - the stock may go through the roof on emotion. May be you think that it already has - but it is a bit too much of a gamble at the first look. More research would be needed for better judgement.
I do think cutr has excellent growth prospects long term, although I like elos better. The profit growth rate will likely slow, but any pullback should be short to medium term.
I wouldn't be shorting GOOG right now either. The company seems to be the Wall Street darling for the time being, and with good reason. My brother works in the IT business and he thinks GOOG will force MSFT to make many changes. He also thinks that GOOG will go to $1,000 per share. You've gotta be long GOOG!
You are right when you say that nothing new is coming out of the CUTR camp. If they don't have a blowout quarter their stock will certainly slip as expectations are high for this company.
CUTR was down 2% on Friday, could that be a trend to $32?
Speaking of CMED, this weekend it has been discovered that the water in a river in Bejing has been contaminated. I don't know exactly what type of material is in the water.
Nice posts, thanks.
I'll give more thought to experimenting with TA. So far, looking at fundamentals worked well for me in the long run. What do your methods tell you about ELOS? If you take into account fundamentals, it must look even better than cutr.
In others words you will except/solicit help but once you obtain the knowledge/experience you seek you would not be willing to spend the time sharing it with others.
Do you know how to read a schematic or blue prints? Can you create them (not a copy)?
There are lots of people that by their very nature can not properly comprehend and then apply TA.
Very interesting. You sure do a lot of talking about your methods. I guess that proves you are not skilled at them.
The key word you and the "controlled studies" used is indicators. There are many indicators within the TA spectrum. None by themselves would work on a consistent basis. TA has many aspects to it. It is the combined use of the ones that are found to work under certain conditions that allows the successful user of it to prosper.
The over extended nature of one stock in a niche to others can be clearly seen in charts, without the use of FA to see it. More times than not each will reflect what the other reveals. It is like getting a confirmation of your thinking. It is when there is a discrepancy that you know you need to dig deeper.