Commentaries on MSCC Trades
Today (US time that is… meaning Monday’s trading day) my friend told me about an interesting stock that might hold a substantial gain. The stock name is MSCC. He told me that the stock already break 1 year low only in 3 days. He’s going long (read: buy) with the stock.
“Something fishy here,” is my first thought. A stock doesn’t just free-fall out of thin air when there’s nothing wrong with the market (NASDAQ is calm and hazy in the last 3 days), so there must be something wrong with the market. So I look it up and voila, I found that the company is slashing its earning estimate because the slow growth of demand.
That can’t be good. Wallstreet is very vicious with companies that failed to fill their quarterly earning quota. So instead of going long, I went short for 1 shares only for the sake of the bet. The stock is indeed going bearish. While NASDAQ closes up 30 points, MSCC is down by $0.35 (from my entry point that is).
How about for the rest of the week? Will the stock still hold its bearish outlook? I believe so. Eventhough the effect of a sentiment (be it bullish sentiment or bearish sentiment) is only temporary, there’s something fundamentally wrong with this company. So my safest bet is that it will still go bearish until they announce their earning for Q4. What do you think?
[...] Okay, I think my friend is right. Although MSCC is on downward spiral and the fundamentals are not good, the technical shows the opposite. A very big volume on yesterday. I’m buying it at 19.63 (after liquidating my previous short position on 19.71). note: after buying it, the stock continues its free fall to 19.60. Am I making a mistake? Only time will tell I also set a straddle on GE with a strike price on both 35. Why I did this? I don’t know… I have a serious issue with picking which stock to trade. It’s terminal, someone please help me :P [...]