Larry,
Sorry I hadn't responded to your earlier message looking for some help (what can I say, it was Friday night...), but I had to laugh at this one. If we knew the answers to these questions you're asking, we'd all be so very rich.
About stop losses, I considered putting one in during the last run-up, at $15.50. Glad I didn't because it would almost certainly have gotten hit. And boy would I have been upset! My advice to you is, FWIW, is if you are going to put a stop-loss in either put it in much higher, such as $27.50 (at 33% retracement), so that if you get hit you won't be too upset, or much lower than the action (lower than 66% retracement) so that the stock would have to be in a major downslide to hit it. (Stocks in an upward trend usually experience between 33% and 66% retracement, though the most widely accepted is 50%.) If you do get hit at the $27.50 example, it is possible that it is, in fact a retracement, and you may be able to get back in lower (say at, 50% retracement, which is $25 in the last run-up). However, in this stock, stop-losses can be your enemy; know that you cannot guarantee your profits at today's prices and stay in the game.
As for your last questions,
• Hard to say what will happen Monday, I would guess Bid.Com will still be correcting, and may hit $23 again
• The support level is hard to gauge, but the most widely accepted method is "past resistance becomes support" in an uptrend, and it could be as low as $17.50. Others might have differing opinions, and you should take those into consideration as well.
• Index funds... likely they've already done most of their buying, but there may be a lesser amount next week. (IMO)
• The technicals say (depending on the chart period you're looking at) that the MACD moved in and out of oversold area on Friday and although there are early indications we may be starting to head upwards again, it is just a hint. The moving averages are all mashed together, and Momentum and RSI is hovering right around zero, indicating we are still not out of the woods yet.
• I think the stock price does indeed reflect investor's perception, including, but not limited to, the TSE300 and the Nasdaq. This does not mean it will not continue to go up, or that it will not go up once it hits the Nasdaq. All variables are part of the stock price.
• As part of the previous point, Friday's drop was likely just retracement, including profit-taking, as were all variables.
I hope this helps.
Denise. |
