Sunday, December 12, 2010

Chart of the Day

Today's Chart of the Day is MGIC. Like the way it has been consolidating after almost doubling in one week. Ideally, it would make the next big move after waiting for MA(20) to catch up but also like it on a close above 7, which might come soon.


Here is a post on whether the markets are overbought here and S&P at important levels.

Update: It's up around 10% already. Hope some of you played it!

2 comments:

Bill said...

Hey PT, of course you already know i have shorts in netflix BUT if netflix falls below $180 would you recommend to your readers to short it? Thanks love the blog and you can add as many ads as you want if you need to they don't bother me at all as long as i dont have to click to close them. Thanks.

positiontrader said...

Bill, my shorting strategy would depend on overall market conditions rather than individual stocks. Looking at Netflix, retest of 200 was a great entry for short, but that's easy to say in hindsight. Looking ahead, yeah, 180 is important support but then there is support approaching in form of 170 level and MA(50). So, a break of 180 could mean down another 6-7 points. But again, you already know my views on shorting NFLX. If I had to go short, I would rather choose beaten down stocks that have rallied on low volume in the past 3-4 days.