Jan,
On the theme of momentum play: You are giving me credit for knowledge I don't possess, but thanks anyhow. When I referred to momentum play last autumn, it was based on the simple fact that there was an obvious volume-based charge on the stock. A lot of intra-day and intra-week trading going on as far as we could see. To be quite honest, I only used the momentum as an added part of my vocabulary because I'd read other posts with the subject.
Trying to read the market psychology, I'd guess there could be reason to say that people were out there adding heat to an already feverish stock. I'd like to think that the market is alert enough to pick up shares that perform extraordinary well over a short period, thus adding attraction from yet another bunch of traders. Everybody wanting to make a sharp, short and sweet kill with the intention of pulling out in time. Again: Assuming there are even more (fools) out there willing to pick their shares at high prices. Ending, of course, with quite a few new investors having got in at high prices.
The latter may, in some way, explain some of the basis for the technical analysis, as it is supposed to encompass all the psychology of the market: Those (or at least some of them) who bought at levels around $17 are in the red, but determined not to sell before their losses are covered. As the price climbs up to those levels again, they will be there, selling, until all the dissapointed are out. If the price managed to break through those tough levels, we will suddenly find ourselves in clear water again, with prices no-one have any experience with, and where anybody's guess is equally good (maybe I should write a book on this theory of mine, might be a possibility of earning more money to put into MVIS...).
What's interesting to see now, is whether the leap on Friday will continue. Last time (as far as I remember) the price really moved on the last day of the week, was last autumn when the share price hit $10 and went straight up to $13-14 during the following week. Must of been just around the above mentioned 'momentum-time'...
Good hunting!
Kim |
