I'm going to begin a rebuild here as the stock drops to $69s, some support down there in the $67s; if it breaks below that, that probably points to some bad news that "those in the know" have, and are trading off of (not that this ever happens in our very transparent and fair stock market). But since I only have a placeholder type of position (0.1% or less stake), I'll use this opportunity to begin expansion in New Oriental Education (EDU) and take it up to a 1.2% stake. The stock is down 8% today and around 15% in the past week or so.
[April 16: New Oriental Education Beats - Guides Down - but Stock Up]
Long New Oriental Education in fund and personal account (personal position could be liquidated on any substantial bounce in next 48 hours, or a drop below 200 day moving average - not a long term hold i.e. I could be selling by the time you read this :))
3 comments:
That brings up a good side question: Where do you look for news/events when you see a stock/sector movement? I seem search all over hoping for someone to post a news report. Is it just too late by the time the google, yahoo, msn reports on it? Is there a faster source?
if its not something obvious on Yahoo Finance then it just means the big boys got something ahead of you most of the time. This is why I find technical analysis crucial
You can love a story fundamentally but when a stock that from all apparent purposes looks fine begins to break down for no good reason - you have to begin to wonder that those in the know or access to those in the know have information you don't. So technical analysis comes in handy from that perspective if nothing else. Generally once a stock breaks down below key resistance (i.e. 200 day) its part of a much bigger trend downward. And maybe the news won't be apparent for weeks, or months later.
Not foolproof - nothing is. But it works more often than not.
it wasn't me, I swear!!! 8-)
Zach
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