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The action in EGGS today raises any number of questions. As short
preface, EGGS closed Friday at 31 5/8. Traded this morning at 40 before
diving to 17. Repeated attempts to rally ran to about 30 then rode the
wide decline to close at 25 1/2.
How much value can we place on Metastock or any TA when we see
volatility like this?
Can such anomalies be seen ahead if one knows what to look for?
What can one interpret from today's kind of action?
When today is many yesterdays away, the extremes of today's movements
probably don't show up so large in most systems, is that good or bad?
Obviously, if TA is lacking in these instances, pure fundamental
analysis must be worthless. So do we attribute action like today's as
confirmation of "Conspiracy Theory" or to pure emotional response or to
emotional response to carefully constructed technical analysis? Or do
we say TA helps . . . about as much as luck?
Meanwhile a quiet stock that I have followed for years (MCRE) jumps
111% today. ( close 8 1/16 after hitting 11 3/8.) I saw the announcement
of a license deal to Microsoft and the stock was up about 10 or 20%.
So then while I try to figure out EGGS, my brain doesn't process the
fact that my attentions should be to what impact such a Microsoft
announcement might make on MCRE even without any details of $s. I guess
my observation to this one (MCRE) are
1. Don't slight my God-given computer for all the numbers a 233mhz can
generate.
2. Follow the advice of Jim and many others, don't dwell on "mistakes",
"bad luck" or whatever else we call it, but use the new information and
the new price to help make a pleasing deal tomorrow.
sga (sour grapes addendum):
I would guarantee that 90% of today's buyers had never heard of
MCRE, didn't even care to see any $# and made money while those of us
"smart" ones are left in the dust. Is this an emotional net-greed
spreading to a broader base? On the other hand I could have bought EGGS
at 40, been too liberal with a stop, and eaten crow for breakfast and
lunch.
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