December 27, 2007
Why Is VeriSign Pegged at $38?
VeriSign was the long idea for Tuesday, December 18:
Long VRSN above 37.01
Protective Stop below 36.10
1x initial risk at ~ 37.94
Target: 42.34 to 43.77
I’m interested in the $38 level because that’s just above 1x initial risk (the level where I’d move my stop up to breakeven), but VRSN seems stuck at $38 — it’s bizarre. Does anyone who reads the news (I don’t) know what’s going on? Who is this massive seller sitting there with an offer at $38? Who is guiding the good ship VeriSign into year-end?
Cat: | Time: 11:08 am (utc+8)
December 27th, 2007 at 11:21 am
DK, but look at the last few days in PIR. approx 3.25 and 5.50 levels. Apparently no uncommon happenings.
December 27th, 2007 at 10:01 pm
Man, I hate that too. When a stock flatlines it’s usually due to a takeover or acquisition. There’s no news of anything like that on VRSN.
If you look at the 3 month chart, you’ll notice a very recent head and shoulders. The V neck of the H&S is right at $38 and we’re currently trading below it and banging against this level.
The market is trying to decide whether or not to confirm a reversal pattern on this stock. If it’s confirmed, watch out below.
December 27th, 2007 at 10:04 pm
steve: It doesn’t matter I suppose because our stop would be at breakeven making this yet another “free” trade.
December 27th, 2007 at 10:57 pm
It looks like someone’s selling a few million shares at 38.
December 28th, 2007 at 6:46 am
Cap: Yeah, and that’s a problem when you’re looking for 42 to 43 bucks a share. :-)
December 28th, 2007 at 9:53 am
CM,
Are you getting the sell orders from Bloomberg?
December 28th, 2007 at 10:32 am
Amir: Sorry, I don’t know what you mean. Sell orders? I can just see from the intraday chart that someone is sitting on $38.
December 28th, 2007 at 10:41 am
CM,
I couldn’t tell if you were speaking in the future tense, as if someone is waiting to sell a block at $38, or in the past tense, someone sold a block at $38. If someone is sitting there waiting, I can’t seem to figure out how you can tell this from the chart.
December 28th, 2007 at 10:49 am
Amir: I haven’t looked at the order book and I assume the seller is “invisible,” but you can see from the chart that every time price tries to go above $38, it stops. That’s why there’s a flat line (helpfully drawn in red) that shows this phenomenon.
December 29th, 2007 at 6:13 am
That 38 seller is creating a bulletproof ceiling.
December 30th, 2007 at 2:39 am
There was a 9999K on the 19.65 bid of SLM
yesterday. (12/28)
The brick wall held but cracked a little with
100 million+ shares traded.
regards,
Bob