August 24, 2007
Stock Du Jour (CFC Intraday Again) & Random Observations
Negative from the get-go which is surprising given the Countrywide news (CFC popped and dropped badly on ~150,000 trades) … mild selling during the day but clearly a negative bias.
Notable New Lows: Children’s Place (PLCE), Flamel (FLML), and New York & Co. (NWY).
Notable New Highs: priceline.com (PCLN), Omnivision (OVTI), China Mobile (CHL), Blue Coat Sys. (BCSI), and Gamestop (GME).
I’ll feature a 15-minute all-sessions chart of Countrywide (CFC) to show how the market digested the BofA news — ugly.
Cat: | Time: 7:54 am (utc+8)
August 24th, 2007 at 9:36 am
I think today was definitely a disappointing day for the bulls. The news cycle was in their favor and they still couldn’t even end positive. Do you think the lows from last week to hold or are you expecting new lower lows?
August 24th, 2007 at 10:13 am
Aaron: I don’t guess about the future, but I bought a ton of stuff in the last two weeks so I’m expecting great things. ;-)
August 24th, 2007 at 11:48 am
“Then a great sucking sound”
Is Ross Perot running for prez again ?
August 24th, 2007 at 12:27 pm
Hi C … back again from my summer in the islands in time to loan all my cash to the markets, so I’m expecting great things as well. The only thing that bugs me is I have the ghost of T constantly in the back of my mind telling me how all of the charts (well, most of the charts) are broken. Wish I could get rid of that nymph! lol
August 24th, 2007 at 12:38 pm
Kacy: Charts are useful for short-term traders, but don’t mean much to long-term investors. The chart of every great investment I’ve ever made (I’ve made one or two or three ;-)) looked like hell when I bought.
August 24th, 2007 at 12:50 pm
C: You’re now a long term investor? Sorry, I didn’t realize that … guess I need to be looking around on this site for something other than the chic pics!
August 24th, 2007 at 1:27 pm
CM said:
“The chart of every great investment I’ve ever made (I’ve made one or two or three ;-)) looked like hell when I bought.”
Given this logic, since the chart of MCO has broken its long term trend line, and the fact that Warren Buffett has a large position in the stock, it must be a buy for long term accounts - or close to it.
Allegedly and maybe …
August 24th, 2007 at 3:29 pm
@Kacy: I’ve always made long-term investments even while working as a short-term trader. I am comfortable wearing both hats.
@Todd: I looked at MCO’s numbers (you know, quaint stuff like their financial statements) and I don’t see “value” there yet (it would have to fall a *long* way from here before I got interested); it’s nowhere near a buy. My point is that deeply undervalued stocks almost always have terrible looking charts… two recent examples from my own account are Merck in the 20s and McDonald’s in the low teens — no chartist would have touched either of them back then. You don’t want to become an ideologue about charts.