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FWIW, Acted on the buy of two days ago @$37 3/8. Sold that position yesterday on the pop. Why? Three reasons. 1. Concern the overall market was about to correct and and an overbought SFE would not fight that trend. 2. A judgement that enough air has gone out of the internets and with SFE at $40, selling at its biggest premium ever, that further expansion of premium was unlikely in the short run-indeed, some contraction likely. 3.The latest buy point was a higher risk trade than at $27 or even at $34, which was the price it closed at after that multi point, high volume up $6 day. [there was a 4th reason, that trade was margin money-scared money. Very quick trigger finger] That said, however, no sell on the stochastic. Still long the position initiated on that last stochastic buy. With the stochastics I use, the sell will always occur after a peak in price- it is slower than indicators others use. The benefit is that it seems able to catch the bulk of major moves and does not have one jumping in and out with every small correction which this may be-only time will tell. Robert, good observation, the only point I might add is that SFE may wait until the previous three offerings show some stability in the $8 to $11 range. Management would like some confidence that a new offering won't trade at $6. They seem to prefer an environment where the offerings will come out and settle at aprox. $10, so they can be seen as adding real value. Re: internets, some may be ready to bounce soon, but many I watch, still have no real support until they are cut in half again-if that. Virtual UBID now in the $60s, $70s, high $189. Not unusual and in freefall. Best of luck, Mike |
