Wednesday, March 29, 2006

Fibber Island

Just a single quick suggestion (the meaty stuff is in last night's post - see below). GOOG is approaching Fib resistance once more. Puts on this look good with a contingent stop order at anything above $397.54

16 comments:

Hurricane5 said...

I shorted Google at $340, Nutrisystem at $34, and Hansen Natural at $95. I am getting destroyed!!!

Tim Knight said...

Well I didn't say to short it at $340! It's $390 today..

Kapil Khanna said...

If you look at the long term chart of Google, it still is trending up. The drop to 330 was a pullback from previous high. With recent price action, looks like its going to start heading over to its previous high.
There is a nice gap at 360. If one wants to go long, 360 seems like a good stop.
Current NASDAQ volume is very high compared to yesterday and price action is up, bulls are not letting go yet.

PB said...

Hey Tim:

Any comments on GS? It seems to be overextended (compared to it's 50 dma)Also, LEH is off it's highs, meanwhile GS is setting new ones. The party's gotta come to end s/time.

Hurricane5 said...

The Nasdaq is at the highest level in over 5 years at 2,339. How much longer before all my shorts start making money? Seems like I would have been better off buying instead of shorting.

PB said...

How 'bout that new high in NASDAQ? What the eff is going on here? Just as the markets looked ready to break, they decide to go for the moon! It's these damn little 1/4 point fed rate increases, monkey business all around.

PB said...

Welcome to the JUNGLE, hurricane5 !

These latest surges have a lot of people scratching their heads! The markets were not compelling at the end of 2005. They are even less so now, you need to be one brave fucker to be buying now.

Tim Knight said...

Well, so much for THAT trade! That's what stops are for, folks :)

Mike Stone said...

Hello Gents,

The Plunge Protection Team has come
to the rescue.

All your shorts are belong to us.

Kapil Khanna said...

Tim,
Thats what i mentioned earlier, analyzing the trades that go wrong. I think you saw what you wanted to see.
Anyways watch AAPL, its a great long. Looks at the volume today. Its ready for a run up to its previous top.

Tim Knight said...

Reflecting on this, my stop was simply too tight. When you're dealing with a $400 stock, it's probably not wise to set a stop to being just a penny above the most recent high...........a stop above the psychologically important $400 level would have made more sense. Ah, well.

Super Bull said...

Hurricane5, don't listen to pb. It is not too late to buy at all. We're just in the beginning of a super bull market.

Kapil Khanna said...

The $400 stop will trigger too. Google is showing signs of strength:
1. Broken its descending trendline from its top.
2. Taken support at its 200 DMA.
3. Gapped up at 360 a few days back, in a pullback. Sign of strength.
4. Higher top, broken previous top of 397.50.
4. Todays price action pierces 50 DMA as well.
Fibonnaci is great to get "out" of positions, getting "in" using fibonnaci has always performed poorly when going against primary trend of the stock.

Tim Knight said...

Ummm, actually, this was a damned good suggestion on my part. I see the stock is down $12 in after-hours trading. So, shame on me for an overly tight stop. But it was still a good pick.

flagator96 said...

long term bears will most likely get killed in this market. The technicals, long term still favor the bulls. My guess is that there's way to much individual and institutional money chasing stocks, indexes, mutual funds etc.
Mr Knight, yes people can make money in the sort term by shorting here and there, but the overall technical market picture is undeniably bullish at this time. People are buing the dips. Classic bull market. Please rest your long term bear inclinations until the broad technical measures (eg moving averages) support it :)

Kapil Khanna said...

Tim,
So you got stopped out of this one at $400 too. Why would you not buy at $400, but rather sell. Technically this one is marching towards earlier target of $485.