LG, don't you mean the daily is coming off the overbought on the Naz.
As for the Dow, I meant the peak of the rising wedge on the daily on those dates mentioned, not the base. Sorry. The lines converge at today's close. I don't know how to post a link to what I'm seeing.
As for RCCC, I looked at their most recent quarterly report, and they look pretty tapped out. Very leveraged. Whatever assets they sell off they have to apply towards their $1-Billion plus line of credit. I don't know how much their licenses are worth anymore, but they've got to be much less than what they have them booked at.
I tried to make sense of their ownership, but the closest thing I can see is there appears to be the future makings of a floorless convertible, but I don't know for sure.
Anyway, this stock looks like it's done with anyway. The DCB stopped right at the falling resistance line off the January highs.
My guess is they are out of money, credit line tapped, very little market for their assets, which caused the accelerated sell-off after downgrades. If you look at the statement of beneficiary ownership, it looks like a poor-man's Enron setup.
That stock scares me. Nice DCB, however. I guess you'll be watching the chart. They talk all nice about their EBITDA, but that doesn't seem to be enough to dig them out of their leveraged condition.
You know we have a broad based rally (or the end of one) when the junk starts running. |
