Today's Price Action: Did Your Mother ever told you Not to put a Stop Loss?
Although it's not always true, it this case it almost certainly is. Volume went up by over 60% just to take out the stop losses (@ $8), which means if anyone wanted to pick shares, there was little he or she needs to do ("sell") before the price breaks a "critical point."
(If you have to, either because you can't be around your computer or mantal trigger doesn't work, a stop loss may be used if not in the "usual trigger point" such as a round number or one in quarters --.25, .5, .75. You don't want to be among many; be creative, with prices such as .11, .38, .66.... It also can't be too low from the previous close since the lower it goes the higher the chance for it to bounce back. It's true about an equity portfolio, to what I believe is called "the logic behind delta hedging," "portfolio insurance," and the same theory can be used here, where the lower a stock goes, the more you want to owe, and vic versa. This is because when you multiply the delta by your equity position....blah blah blah)
What am I doing? Well, this is a long-term stock for me and, usually, trading long-term stocks tend to cost me more when I get back and purchase them later on. Since I think we have good things coming, I believe, just as in the past, that it's just too easy to drop the stock on a day with no news and little volume (...not counting the stop losses).
I think tomorrow is a big day, as a rate reduction of .50 will help RAD with another $7.5M debt reduction/year. On top of that, this quarter should show more improvements, with a likely change in credit rating, followed by upgrades on the stock --especially from JP Morgan, who should still hold a large stake even after (what i suspect, with no proof) some selling by this fund (since it's not in the business of holding large stakes, other than temporary business relationships, it will look to reduce it as days/months pass).
While I was typing, the bid went from $7.91 to $8.03. The price is now $8.05 (ask) w/volume of 2.22M shares. Go figure! Are you mad? You shouldn't be. "Since if you can't beat them...." Enjoy the game!
The above is my opinion and mine only. You may have a different view point, which you should follow. Just remember that whatever you do, it's always your money |
