IPO's
I've posted this a couple of times, and so far have not followed my own advise. Maybe the third time's the charm, if there is a third time.
When ever we have had these high publicity Net IPO's, the major Net stocks have sold off severly immediatly after the IPO's open. It's almost as if air needs to come from the existing balloons to inflate the new ones. It's not just stocks that are directly connected to the IPO, either, it happens across the board.
Now swear to God, I'm not doing trades other than gaps, but I will have the newbies on my screen, and if I'm long anything net-related at the time, I'll exit immediatly and see if the pattern holds true. If I'm short on a gapper, I'll double up if I'm ahead at the time.
CNET
Tom and I watched this one yesterday (it kept slicing through it's gap trigger like butter, as it was trading at a huge spread), and I passed on it. Currently trading 19 points above yesterday's buy signal. This stock has been crushed the last few days, so even with a huge gap up, it could easily keep on going. Gap it.
Have a great day, and be careful out there, kids.
Jay |
