A long in KKD

H

heilbronner

I really hate to trade this stock on the long side, but now I entered a long position in KKD. Only technical. Long @ about 39.50. No average down in this stock!

IMHO a P/E of almost 60 is totally nuts, but I'm a trader and so that doesn't matter that much.

:cool:
 
scary stock brother....keep waiting for the botom to fall out ...Kind of reminds me of ZOLT and IOM in the mid 90's....so many shorts it couldn't go down anymore
 
I dont really understand the risk/reward with this trade. It tends to gap up/down 3-5% or more and the overall movement does not justify that kind of stomach acid drawdown.

I have had better luck with TQNT and VRSN for smooth trending high beta swing trades.

Have you done well with KKD in the past?
 
Quote from TM_Direct:

scary stock brother....keep waiting for the botom to fall out ...Kind of reminds me of ZOLT and IOM in the mid 90's....so many shorts it couldn't go down anymore
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Zolt and IOM were once big dogs that made a fortune for some people.

IMHO during a bull market you have to go long in an aggressive way in stocks with
1) new highs
2) high PEs or none even better
3) high short interest.

and play the short squeeze in your favor. My guess: The next big bubble is already emerging, but maybe this time in Asia.
 
Quote from heilbronner:



Zolt and IOM were once big dogs that made a fortune for some people.

IMHO during a bull market you have to go long in an aggressive way in stocks with
1) new highs
2) high PEs or none even better
3) high short interest.

and play the short squeeze in your favor. My guess: The next big bubble is already emerging, but maybe this time in Asia.
More...


agreed...I was just pointing out thte similaritues in that there was so much short action in those two that you had a squeez that last form months....ahhhhhhh the good ol days:D
 
Quote from heilbronner:

I really hate to trade this stock on the long side, but now I entered a long position in KKD. Only technical. Long @ about 39.50.
More...

What indicator are you looking at that says "long"? I'm looking at a daily chart and it looks like a pretty consistent downtrend since mid-August. Are you taking a real long term weekly view?
 
In this case indicators are:

1) The Gap
2) Stochastic- oversold
3) Most important: my stomach.

As I am a Cancer I'm driven by emotions and my stomach.
 
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