Anyone watching/trading DYN?

C

carlp

I've noticed some traders on this site are into picking bottoms on oversold stocks and then riding them up a few points. Personally, I beleive that is one of the best ways to play the market right now. But the trick for me is to differentiate between a stock that goes down and stays down, and one that bounces. I've found the more dramatic the selloff, the more chance of a sharp, snap back rally. This happened with TYC recently. So, is anyone watching or playing with DYN?

The stock has dropped about 70% in about 3 weeks. Its oversold, but I know that doesn't mean it can't go lower... Just in the past week its down about 25%.

Right now nobody can convince me its going straight to nothing, so I took 5000 shares today near the close and plan to average in more if it goes lower from here. Anyone doing the same? or am I early?
 
I think you're early personally. The volume was so-so, but it's a slow bleed downwards. Lower prices = debt downgrades = lower prices. I rarely bottom fish on these really well owned stocks. It's suicide. If janus decides to sell all 50m they own. It will take weeks to bottom out. No one smart will step up and bid into janus til they think it's run it's course. They type of stuff I would do is something like wcom where the downside is very limited or a rri where the decline is just so severe.
 
I see where you are coming from about the mutual funds selling, but the same could have been said about TYC and VRSN not too long ago. Both of those were/are heavily owned and followed. TYC went up almost 50% top to bottom. VRSN has edged up 3 pts.

I'm really wondering how the specialist is handling the 70% drop? He's got to be buying a bunch of shares in hopes to sell them higher. That's my view anyway. These NYSE stocks most always bounce.

I've got a feeling I'm early but, I've only used a tiny amount of ammunition. I'm not really a daytrader, so I'm willing to hold for days, even weeks.

Thanks for answering.
 
Carlp

You are looking for confirmation on your trade.

I can come out and trying to be cute by saying, yeah, from Daily chart and intraday chart, it looks bottomed... either me or P2 will be right...

That's not what I am gonna to say.

Here is what my thoughts:

Once you have a position, you can't control the direction, but you can control your own action based on mkt, something like:

1. If mkt go down tomorrow and DYN holds, then I will stay in the trade.

2. If mkt go up and DYN holds, then I will...


Bottom line, I will get out(or buy PUTs to hedge) if DYN drop to 7.5(or whatever your stop is) no matter what.

By having these PLANs in your mind, you have nothing to worry about, remember, do not get into the mindset of "oh, it's only a small part of my acct, what's the big deal ..."

Good Luck
 
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