IMPORTANT: Huge volume again... now 17 1/8 and climbing...
Like Ram has been saying, the price is not jumping because shorts are adding to their positions in a frantic attempt to average down. HOWEVER, there is obviously much more buying going on such that we keep slowly moving UP. With 750K shares average per day, that's a fantastic base we're building on the way up... i.e. this is not some low volume MM manipulation thing that people on SI are so fond of theorizing.
The key is NOT to sell, no matter how tempting. HOWEVER, if you want to protect yourself because you are afraid the stock might go down... sell calls or buy puts against your position. The worst case scenario is you'll break even at the current levels and the best case scenario is when the price inches up past 19 there will truly be MASSIVE short covering that could, seriously, bring us into the mid 20s.
I want to also add that I consulted with experienced traders and brokers to reach this conclusion as, admittedly, programming is my specialty, not trading. However, how many Y2K stocks do you know announcing 50% increases in estimated EPS? With Y2K heating up -- finally -- Wall Street is going to start handicapping favorites. With ALYD's client base, factory approach, Russell 2000 listing, DeJager Index listing, and strong earnings, they have got to be considered at the top of the list.
Good luck!
- Jeff |
