Grading out the calls on SFE (for fun!):
1) Morgan's call (3/23): re: SFE - the stock almost doubled in about a month, and indicators show ST overbought condition....tradingwise - the stock is too weak right now to break out on its own. If a break was going to happen, it would have happened already. However, news ALWAYS overwhelms TA - if Blodget comes out touting SFE - watch out - to the upside!
The TA:
The lower band on SFE right now is low-mid 70's. The 100 number is resistance, but *magnetic resistance* (this means that w/ good news, the 100 will ATTRACT people as they want to get in "under 100", and that makes the stock zoom to break 100 - absent a propelling event like that, the 100 is resistance, because people don't want to get in "high" and 100 seems like an extra digit and so "too high").
If you get in now, your downside is 70-75 (depending on general market conditions). The risk you face in NOT getting in, is that UNANTICIPATED news, will leave you behind as the stock breaks 100 (anyone who tells you that TA is imprevious to news, is a liar - look at what happened to RMBS yesterday on the one analyst pronouncement).
2) Greg's call (3/24): teflon, SFE is ready to move again, it has been making higher lows moving sideways in tight range, I'd say with in days it will be moving to new highs as long as the market behaves, which I believe it will.
Looks like Morgan won this one <ggg>, although I believe we all agree that SFE is a sure fire winner over the long term. I'm looking to add if it dips below 80. Still hearing positive things about SFE's road show for their secondary.
Teflon |
