I dont like knives

Quote from cashmoney69:

When a stock gaps down on negative earnings like RNVS did today at a 10.77 gap loss, would this be a good time to buy?
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2 things cashmoney.

1. You would do well to never trade drug stocks unless you're prepared to follow the industry very closely, and you have close friends at the FDA who don't mind facing insider trading charges.

2. Never thought that I would be quoting Jim Cramer (argh), but he has made an excellent observation that I've found over time to be true. Buy broken stocks, not broken companies.
 
Quote from cashmoney69:

Short entry?...i think support is at 28.25 - 28.00

60 min chart shows a break down gap, which will probably be followed up with a continuation gap to the downside as well.

cm69
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PRXL Long enty....check it out today.:) 2.5% bounce. (at around 10:15 est). support and resistence are ranges..not absolute numbers..it is also very close to the 200 MA. it took a real drop and was short that it was a bit "tired" of falling.

This WAS a bit riskier due to the economic report...but it behaved well for a bit..so i sqeezed half a point out of it on high volume. I sold when short term shichastics showed it was overbought.

in a perfesct world, the indices would have been going with it as welll..which is why it was shuch a short hold...

If it were for being a friday and a lousy economics report..this would have been a hold for several days.
 
Quote from cashmoney69:

dac, have you taken a look at rhat?... wow :eek:


cm69
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RHAT would not have made my list for several reasons.

1. In a 52 week downtrend...to go long...i need an overall uptrend
2. Below 50 and 200 MA...i dont buy anything below these levels
3. the sell off only lasted one day...not enough "exhastion".
4. The fundamentals are not good enough to take a long position..


When i "catch a knife", the drop off needs to ba an anomoly...not part of the overall trend. that is how you get the odds in your favor.
 
Quote from dac8555:

RHAT would not have made my list for several reasons.

1. In a 52 week downtrend...to go long...i need an overall uptrend
2. Below 50 and 200 MA...i dont buy anything below these levels
3. the sell off only lasted one day...not enough "exhastion".
4. The fundamentals are not good enough to take a long position..


When i "catch a knife", the drop off needs to ba an anomoly...not part of the overall trend. that is how you get the odds in your favor.
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1. What do you call an overall uptrend?.. a few days..weeks in one direction or longer?

2. no matter what?

4. Whats your holding period?...for a trader to look at fundamentals, they probably have a long term goal (3 months +)

cm69
 
Quote from cashmoney69:

1. What do you call an overall uptrend?.. a few days..weeks in one direction or longer?

2. no matter what?

4. Whats your holding period?...for a trader to look at fundamentals, they probably have a long term goal (3 months +)

cm69
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1. For an overall up trend i start with a 1 year or 6 month chart. i will go as low as 1 month. that is GENERAL TREND right.

2. Yes, no matter what...you have to narrow things down a bit. So to "catch a falling knife" i will only do it off my "long list", and look for an opportunity for it to "resume the overall trend after a correction". You have to have a way to narrow things down to spot the good trades.

3. My holding period varies wildly. Today i had about a 30 minute trade...but i look for 3-10 day trades. Ideally hold forever, but that scenario usually doesnt play out.

5. I use fundamanetals for my initial "long list"...again, simply to narrow things down. So to go long...i use positiove earnings companies with ultra high earnings growth and relative strength. just a logical place to start. after that it is virtually all technical and risk control.

6.As far as shorts...i just use striaght technicals and macro economics normally on nice cyclical etfs like gold and oil.
 
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