Hi Jim, Re: FIBR,
You know, when you put the daily chart together with the weekly chart, it's clear that FIBR was oversold in late Dec both long term and short term. I'm not up on all the TA jargon, but maybe now I know what you guys mean when discussing different moving averages and stochastics.
When you combine the 2 charts plus short positions, PLUS Dec tax loss selling (oh yeah and fundamentals), you get a forumla for a very powerful quick up move. Like you point out, the long term chart indicates that FIBR may have a ways further to go.
I'm attaching the links. This let's us novices see in pictures what you guys are talking about in technical terms and words !
iqc.com
iqc.com
viwes.com
I've noticed from comparing the daily and weekly charts that when the daily chart's stochastics have turned around but the weekly is near bottom but still heading down that the best buying opportunity occurs. Of course there is some risk since the weekly has yet to confirm the uptrend. But that's where knowledge about the company, etc. come into play.
With FIBR, this was not a problem since the daily and weekly were at rock bottom. BTW, SEEQ is fast approaching this same condition (without the short interest). However, if past performance is a guide, there is no rush to buy SEEQ until about 3 weeks before their next earnings report. I also think the next time the NORTdaily chart bottoms (next week ?), both NORT's daily and weekly charts will have bottomed. NORT may also be helped by growning consensus that oil services stocks have been grossly oversold. NORT's earnings are due out soon too. Disclaimer: I own both stocks.
Let's hope this week's political headlines and economic news doesn't screw up the week too much !
Regards,
Chris |
