<<Anaxa, curious to know your current reasoning
for being short. Will you stay short overnight?>>
Because a lot of folks just got the crap beaten out of them by longing this.
There's simply no way (IMO) that this is going to come near $40 again in the next few days (where by "near" I mean $38-ish), so upside risk is now nicely capped for me, IMO. With the additional puts I now have limited risk as well. In any case, burned once twice shy should hold of this for the bulls, so when folks see the price rise they'll get nervous. Unless EGGS can pull a rabbit out of their hat via another press release, this should be done for now; it should be broken. All the news is out. With the DOT index down over 10% it's a nice reminder how quickly money can be lost. People have gone to their new site and have seen it. Yawn.
Another thing- now that traders see a near term top, they'll long this for little 3-4 point moves, but that's it, IMO; instead of being hesistant to book profits, they'll now be in a hurry... in general they'll prefer to move to virgin territory; slowly momentum will leave, the little pops up that occur over the next few hours/days will be on smaller and smaller volume, and the trend should be down. At least that's a pretty classic scenario- who knows if it will play out here? But it should decrease in volatility, this morning was the blow off.
As to my short shares, I don't know what I'll do with them; I'd like to book a profit today, but we'll see. But I do expect it to go down near the close and have a last trade lower than Friday's close. That's a classic shorting sign BTW, i.e. a gap up open but with a close lower than the preceding close.
But remember that I'm the guy who called for a gap down this morning.... Ha!
Anaxagoras |
