<<Even the battery runs down at some point. For short term traders like myself, LU looks overbought. It may move up for another day or two since earnings are due out next Tuesday and expectations are high. I sold it short today at 77 and expect to buy it back at under 75 next week. That may not sound like much but I've found that I can make 3-5% every couple of weeks by buying stocks that are oversold and shorting the ones that are overbought. If I'm wrong, I'll buy it back when it hits 82. In any case, everyone seems so euphoric about this stock that I thought a little contrary opinion would be welcome. >>
Are you saying that the stock is overvalued at 77 but fairly valued at 75??????????????
In general, I consider a bad practice to short stocks trading at all time highs. Yes, I would agree that LU is overvalued, but so it was 20 points ago. MSFT has been overvalued for 10 years. Well, it's your money...
I would agree that several stocks have rallied strongly recently into their earnings announcement only to drop strongly after the release, even though they beat expectations. Just today it happened to MOT and BA, for example. So it wouldn't surprise me something similar with LU next week. But it's too much of a gamble to short it, IMO...
Good luck to you, and I hope you have some stops, to cover your butt!
Michael. |
