Thursday, January 31, 2013

Thursday evening

The Green Arches


Twursday Afternoon - Futureman sez ...

Futureman enlightens the black and white generation
(Click on the picture for a better view.)
Twitter crashed this morning.  Probably because they were thinking of selling themselves to a deep pocket hedgie group and the market gods decided to slap 'em around first.

The market is struggling to find direction and has been on both sides of the flat line multiple times today.  That could mean we have found the top for now ... or perhaps the cruel wench is trying to suck in some shorts.

Thursday and we're going AWAY

Stolen Chart Idea of the Day: AWAY
I saw this idea on FM and I'm going to be watching it so I'll toss it out here for everyone.

WARNING: This is a DrJ recommendation and the stock is NOT cheap.

The stock has a ttm P/E of 195 and a forward P/E of 35 according to Finviz.  They should report February 18th and there is a huge short interest.  Fully 14% of the float is shown as short and that requires almost 19 days to cover.  The analysts have a 28 price target on this one so it is a powder keg looking for a spark.

The Trade
An entry in the 23-23.50 area would be good and a stop just below the 20 day simple moving average will contain the downside risk.  With the focus that FM may have put on this setup it could move very quickly so if you are not willing to "set and forget" or stare at the screen and watch like a hawk this is probably not for you.  Volume on Wednesday was above average and has been increasing each day since last week.

Check the March 25 strike and you'll see tremendous action.  Open interest was 10 (yes t-e-n) and volume hit 6352.