Wednesday, February 01, 2006

The quick 'n dirty on INCX.

Sorry for the delay. I forgot about posting this yesterday.


At 1:25 PM, Anonymous Anonymous said...

so do you expect a short squeeze soon?

At 3:41 PM, Blogger hortons768im said...

the way it is performing(even today), it looks like, jon, that it wants to make new LOY in 4s...would you buy here or wait for it to make new LOY?

At 5:14 PM, Blogger jontait said...

There won't be a short squeeze until it closes above that downward sloping upper-channel line (probably around $8).

However, if the lower-channel line holds as support this week, then this is a decent time to start building a position because your risk is low: if it closes under that lower-channel line, then the best move is to step aside and watch from the sidelines. I bought a small position today, but if it gets weak during the day tomorrow or starts to look like an inevitable close below that support line, then I will close the position and re-evaluate. Why did I not sell today at the close? The volume was so light, sometimes these things are an abberation, a byproduct of noise. If it is down again tomorrow and the volume is bigger, I will close the position and watch. The most recent low (near $5.25) will probably be taken out in that case, and the stock will probably get a lot cheaper. So cheap in fact, that it won't be marketable in the near future.

I have no qualms buying the position back if it convincingly reclaims support. However, if it gimps back up to support then I forget about working a campaign in that stock until my market homework software tells me about it again sometime down the road (probably months or years).

At 11:18 PM, Blogger jontait said...

Just a quick follow-up for my INCX play. It did close lower on bigger volume today, but neither one by very much. I closed out my small position for a small loss and am on the sidelines.

At this point I don't think the stock will recover in a way that causes me to buy again.

At 11:14 PM, Anonymous Anonymous said...

i SWEAR that i am not being a smartass, but do ever consider fundamentals when trading in ADDITION technicals?


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