it is good and healthy. Don't forget the stock was 16 and change just 3 trading days ago
and ran upto 24.75 .. a whopping 50%+ run... so it took a $ 1 breather.../ pull back..
this is GOOD for the stock to move higher... she will be 50+ by next earnings report
(1) Short Interest (2) Low Float (3) extremely bearish sentiment
(4) too much fear (5) insiders and institutions own 125% of float
(6) Downside just 35% or $ 6 (7) Upside easy DOUBLE , may be even
triple to quadruple from here
Seven SOLID reasons to go long
Fiat currencies will never let gold replace them.. the entire world's central bankers
are all together in this scam.. simultaneous devaluation of currencies going on
for past decade.. when all currencies are devaluing there is NO relativity amongst
them since all are worthless... so in the end gold will have to "join em if you cant
beat em" and down she goes a la oil... with oil at 50ish gold has to be 800ish max..
it will happen..
AND on top of that 125% of the stock is owned by institutions and insiders...
this is an explosive situation esp for the shorts... I predict that the stock will retest
its 150 high to burn the shorts and then re-settle back in the 50-60 area... I believe
downside is about $ 7 from here ?? Fantastic risk-reward ratio... 40 % vs 800%
I say TAKE THE RISK...
late day buying come in for the past several trading session... this
is typical of a stock getting ready to break out.. she sold off from
$18 some 4 months ago.. she re-visits $18 ++ over the next 8 weeks..
Options are good vehicles if one expects a major move on the stock..
eg NFLX went up $100 and the call options $100 out of the money
delivered 1000% return in one day... bid and ask spreads sometimes tell
the story.. mm keep the spread wide to discourage buying if a major move
is anticipated... imagine ASPS opening UP $ 15 day after the earnings..
Based on technical analysis. Projections show her closing at around $ 23
just before earnings. It gets a bit tricky after earnings due to LOW FLOAT
they may trap the shorts BIG time if earnings don't disappoint ( model shows as
much as a $17 UP swing to $40++ in this case) or they may give it one
more sweep down to 17.50 to confound the longs and shake them out..
Trading is ALWAYS .... (1) Impulse # 1 (2) Gut feeling stemming from informal
tech analysis (3) Formal Technical analysis... most folks just operate on
(1) and (2) alone.. I always include (3) ... and YET wrong at least 1/3 of the time