Good Time For Some Profit Taking...
If you haven't taken any profits during the last few weeks, now is the time. The VIX has become dangerously over-extended to the down side and may snap back up, resulting in a large dip in the indexes. Such a dip can pretty much wipe away any gains you have. Other reasons for selling? Low quality stocks are starting to make moves, the move is on below average volume, resistance at current market levels and failure to move beyond resistance. In order for the market to be healthy, all the indexes must be in an uptrend. The Russell 2000 has not even been able to climb above the 50day MA this whole time since the initial sell off occurred late in October. If the RUT cannot climb above the 50day MA, it will face resistance and that is the point where all the other indexes will follow suit and drop as well.
posted by Nick M. @ 11:49 AM
5 Comments:
How did DDRX fly up so high when they already closed the deal for 27??
I had a feeling this would happen. Once the initial deal was announced, DDRX shareholders filed a lawsuit as they thought the 22 a share was too low of an offer
PEET's not doing so hot, as a result.
Definitely not, I sold out of PEET a couple of days ago (the rest of the pos on 11/17). PEETs breakdown was the reason why I had a weird hunch about DDRX's offer being raised. Once there was announcement that they were dissatisfied with the offer I had a feeling that I should not expect too much from the stock. Legal situations always kill long term trades.
I hope that everyone has taken some profits off the table. Friday might be particularly bad, based on the latest news. No wonder gold and mining stocks were looking strong on Wednesday. The big boys new it and we, the small traders blew it...
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