I just got back and see my stop loss at $9 got taken out. Indeed it got taken out with some vigor in the usual selling surge during the final hour of trading (that's so predictable now I can set my watch by it). As a consequence MCOM extends its string of +15% daily losses with todays ~16.5% loss.
Well....if there's one thing to be said at this point. At this rate MCOM won't be around much longer. *Ahem*
And I see from Island & Archipelago that buying has gone from anemic to non-existent. So this one is firmly in the clutches of the short position, with the only action on it being selling. Indeed, currently I'd say that position doesn't need to fear any aspect of an immediate MCOM recovery. And for two reasons. First, I'll just wave a general hand at the state of the market. It's in full out retreat south, taking everything except recession resistant equities with it. Secondly, MCOM is still, and will continue to be until the second half of next year, firmly a story stock. So the short position has plenty of time to play this equity further before considering heading for the door. These be glory days for them. I guess it's long overdue, given the pounding they've received these past few years. But when you've played this game long enough you know that every position has its day. Right now; it's theirs..
So given all this let's go to the TA tape. MACD screams this equity is in the toilet. OBV has all but fallen off the chart and onto the floor, indicating no buying and all selling (no surprise there). All semblance of a supportive floor in the mid $9's has been obliterated, with no respite apparent into the immediate future. And from a look at the 36 month chart I'd say MCOM has done a serious head and shoulders routine, with it conclusively breaking the neck to the downside on its way to a probable test of its 36 month (Oct '98) low of ~$5.5. And without the benefit of a market rebound.....no....let's make that a FIRM recovery....well.....how do you feel about buying it at $5.5?
Anyway, as I said I'm now in the midst, besides trading this equity, picking buying spots in building a speculative long position that I plan on holding at least 1 year, probably 2. As such my next buy is planned at ~$7.25, with two more buys planned at roughly $1 increments downward from there.
John~ |
