John; RE:" ELY - Callaway Golf "
By "position", I was wondering if you were long or short, at what price, leveraged or holding equity; and whether you were "trading" or "investing" long term, John.
By "thin" I was giving my first impression of ELY's latest movement, which shows a long base at ~10 for a duration of 6 months, and a near vertical move up > 25% on heavy volume Tursday+Friday (one would sum these two day's candlesticks together to depict one long, white candle) : supply/sellers was thin and demand/buyers was heavy on Thursday+Friday, as if there were an order imbalance. ELY has not busted out of ~13 for 6 months, nor fallen far below ~10, either.
There is no short-term or intermediate trend, per se - the most remarkable feature of ELY's chart is its long basing period at ~10; secondly the tremendous free-fall in prices from 1997-98, the stock losing 2/3 of its value: That DownTrend ended at ~10, when ELY became "dead money" @ 2.65% APR yield, ~3.8% taxable equiv APR yield in a tax-free account (rather than "a machine that destroys kapital").
News-wise, we note that ELY reports earnings next week on 28-JAN.
T/A-wise John, ELY has a low correlation to RUT.X or to the S&P-400 or, any other sector index: since July-98 ELY has been a speculator's stock rather than a high-visibility trader's stock or an investor's go-with-the-market-mo growth stock. The only classical chart pattern is the long base, with occasional blips without breakout > 13.
I would suggest using a Point & Figure style chart here, John, until there is some sort of trend evident over time.
Else, go intra-day, John, exploring time-slices less than 30m.
-Steve |
