Michael,
Thanks. Unfortunately, I also said that it probably had very little fight left at $5, which was entirely mistaken. $5 was a forkin' trampoline. I agree that 5/8 is one of RECY's major floors/ceilings, tho' I haven't found any trendlines to confirm that feeling of mine. I once margined RECY at 7 1/16, then it fell down 5 5/8 before leveling at 6 5/8. I got out at 6 5/8, on the way down, largely by shouting at the broker to sell immediately or I was going to sue. Then it turned out I could've made the same trade at day's end. It sure didn't feel that way at the time I sold.
My basic take on stocks showing high volatility during the kind of low-volume rundowns RECY's been experiencing for 6 weeks, is that the very fact of the volatility shows weakness. To me, it feels like the entire basis for the stock having risen is getting wobbly: Think of it as a floor you're standing on. When that buckles up and down, generally you'd say that it's time to go to a different room.
On the other hand, and there always is one: RECY, as I said yesterday, has been moving in very discreet up and down swings of 4 to 6 weeks, one of which may well have ended yesterday (in which case, it may see 8 again).
Ivan |
