JEC now has major resistance at $42 - if it breaks over that level I'll get back long. But for now I'm more apt to short it once it gets there. I am selling in the mid $39s but the stock should have clear sailing to $42 if the market lifts.
I was a little impatient yesterday and should of held 24 hours more to get rid of my long stake but the up and down action in the name was getting tiring. So we're here as the stock hit $41.50 intraday; I missed the top but I am going to put the short on here in the $41.10s area. The chart below looks different the charting I use which shows both the 20 day and 50 day exponential moving averages touching at $42. So we have two layers of resistance; further if the 20 day crosses below the 50 day that is even more bullish. I can also make a bull case from the chart (the stock appears to have made a quick double bottom in the $37s) so we'll see how it works out. If we are wrong, we can be out at $42.50 and take a modest loss of 3%. If we are correct we'll shoot for $38 which the stock seems to hit a lot. We did this exact same trade a few weeks ago; I'll allocate 3.3% to this trade.
Short Jacobs Engineering Group in fund; no personal position
10 comments:
Any thoughts on LPHI the last few days? Just more out of favor action from HAL 9000, causing it to break support it looks like.
Robert,
LPHI is a crazy stock
a few days ago it went from 42 to 38 in a blink of an eye
it only trades 125K shares on average so I notice 20K shares can move this one 6-8%.
This is one stock I do not use technical analysis on because everytime I try, I sell at the low and buy at the high.
You can see some movement out of recent leaders and into other stocks... part of this rotational correction. That might be it but looking today I see a whopping 72K shares traded ... it just moves shockingly fast on very little stock.
TM,
Cannot see the charts. Something wrong?
In all posts or this one? There is a jEC chart at bottom of this entry
mark,
did you hear the news on CNBC, the recession is over.
Bill
Bill, first use your real user account... instead of anonymous
Second, your guy with the great 3 day track record of calling the market is done for eh?
;)
Thats why I asked what he thought was coming this week. So far 180 degrees wrong.
Its a tough market when the government is around.
I agree the recession is over and the 5M Americans who will lose their jobs this year also agree. 600K down, 4.4M to go.
It wasn't just 3 days, it was more like 2 months which is all the time I knew him for.
Anyway all I know is that that the put/call ratio is showing raging bullishness which is not a good sign for another up move.
It could be the money flowing out of treasuries into stocks..
His Yahoo ID wasn't hobo something was it? If so, I need to talk to you about flutes. ;)
Thanks for using your real identity ;)
Ok sure.
This could be a rally to fill the gap from the gap down last week maybe, because it seemed to baffle every technician i know including me.
We'll see monday.
PS: go TSL!!!
I ran over after you comment to pull a quote on TSL thinking, gosh it must be up 10% on a day like today
up 1%
the cursed stock.
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