<what do you think about CMGI for daytrading?>
Alan, I have also been watching CMGI with the same thought in mind. Looks like a pretty good candidate for a day-trading stock: a decent daily range and daily share volume. Looking at the past few days on a five-minute chart, you can see it's made a lot of it's recent moves on the overnight gaps. But, I'd play it...I would study the MM behavior a bit more with Level II first, as you know sometimes the net stocks trade thinner than they look just based on share volume, depends on the market makers commitment to the stock, how many of them make a real market in it (vs. scalp it), etc. EBAY is a good example - it often trades terribly, compared to say, YHOO.
Since CMGI just disappointed on earnings last week, I wouldn't be surprised to see the issue break major support here in the high 80's next week, and take more of a dunking... so I'd be looking to play it on the short side, until it shows signs of a clear reversal.
As I'm sure you know, this is more of a public venture-capital outfit than a conventional product/service company... the earnings disappointment didn't alarm investors as much as it would have coming from, say EBAY or YHOO [CMGI included a big forward-looking hype-job with the earnings report. Hello, San Diego misery-men? Yeah, it's me, yeah the daytrader...]. But it's still likely to be in for some punishment, especially with the whole sector unable to gather any real strength lately.
Regards, -Steve |
