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
Wednesday, March 29, 2006
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9 comments:
Well I didn't say to short it at $340! It's $390 today..
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.
Well, so much for THAT trade! That's what stops are for, folks :)
Hello Gents,
The Plunge Protection Team has come
to the rescue.
All your shorts are belong to us.
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.
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.
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.
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.
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.
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