RE: COMS
Hey, Chris, no need to wait for COMS to break 51; I'll sell you 1600s right now for 50 {grin}
no no; just kidding. Lessee, ASND started off by going ballistic on news and rumours, exaggerated by FOMC and general NAZ bullishness. The freight train in this sector is CSCO, and when it started to move up past 70 again, COMS was pulled up, too. COMS now has a 2-day base at ~48, and is starting to get its own press. OTOH, ADTN just announced lousy earnings, and there are a lot of gap-ups in the sector, so some retracment is certainly possible. COMS will seek that GAP there at 45, if the NAZ / Sector shows any weakness.
If that happens, go ahead and nibble, with a STOP LOSS at 42~43.
ASND was higher then COMS for a few days; An ideal arbitrage to short ASND and go long COMS @ 48 open today; cover ASND and sell COMS at close; but that's gambling :-)
Dunno how much capital you want to put into it, and that makes a difference. I don't like to play "god". My favourite pattern is to buy down like, 100x46-1/8, 200x45-1/8, 300x44-1/8, 400x43-1/8; STOP LOSS 1000s @ 42... was how I played COMS when he approached his recent Trend/Support. I started buying down LU 100x74 today; his weekly chart says this might be a good play, STOP LOSS @ 69.
COMS says he wants to base at 48 now. Lots of people bought COMS the day before earnings, between 48~50, only to have the piss scared out of them when the stock promptly tanked -10%.
I think breaking the 50~51 area is gonna be messy, Chris. A LOT of folks have STOP LONG orders to buy at 52, GTC, waiting for the breakout. The pros know this, and may pop it, trigger all these orders and then feed the frenzy. COMS would shoot up on diminishing volume and then sell off, like ASND, if this happens.
IMHO, your best bet with COMS is to buy when everyone is selling, preferably below 46. You want to go LONG, so wait for weakness, then ATTACK that baby!
But there are a zillion ways to do it, Chris. Other guys like to buy on momentum (on the way up). Vive la difference!
-Steve |
