"The question, as always, would be WHEN? and how much lower will the stock go before it goes to new highs? "
This depends on whether you have the time and desire to trade or you want to invest in a sure thing. If you've followed the thread, you know I'm out and looking for it to drift lower (however that wasn't drifting today). But you'd also know the CEO has stated the company is for sale and Vogel has a price tag of $80 on it. You should also know that consolidation in the Telecom sector is amoungst the hottest topics on WallStreet. So the question really is, do I want to take a chance of picking this company up maybe two dollars cheaper tommorrow but knowing I may miss a gap to $80 if a merger is announced? And I will guarantee you Bill R is in ongoing talk probably daily, probably with a few companies, about a takeover. This is a good trader, but if you want to catch the real ride, you better stare at time and sales data, option data, and this thread almost constantly.
Todays action was not good. I was hoping for an orderly retreat to the 26 area over 3 or 4 days with declining volume every day. There we would meet the rising short term (20-25 day) MA's, that I hoped would hold up. Today makes it more likely, to me at least, that short term support won't hold. The bad news is 50 dma is way down around 21. And worse, the lower Bollinger Band is around 20. We just left the upper Bolliger Band around 29, and more often than not, after leaving one band you usually trade to the other. I hate to even guess now where WinStar can drop to, but I think the DOW will at least retest 6900. Not a good market to be in. But remember, the takeover could happen any minute. Or maybe not for 6 months. |
