I am adding to
Mastercard (MA) on this pullback. I like this company but it has one major issue going against it - it is too strong for government bailouts. In this new world we enter, that is a major black eye. i.e. it is far better to buy American Express (AXP) or Capital One Financial (COF) since the government "has their back" - Mastercard is not understanding the new business era we are in where those that are too strong for government handouts are the weak.
The stock formed a "double top" in the $177ish range which is a concern - usually that leads to a downward turn... but I am using the purple crayon trend line below where the stock has pulled back to right now. If this line is broken, we have to cut back and find a stock better supported by the government.
I am taking Mastercard up to about a 2.3% position with purchases in the $159s.
Long Mastercard in fund; no personal position
I am taking Mastercard up to about a 2.3% position with purchases in the $159s.
10 comments:
Mark,
Look for good shorts in Indian ADRs.
Indian market rose rapidly..too fast too far.
Because of on going elections.
Corporate earnings are not good.look INFY results.
Looks good here I may use that for a trade ;) but if you use T/A you can argue a wedge is forming as well (connect peaks too), which would support a small bounce then a crash through the trendline.
Bill
Anon,
R u talking about INFY?
ST,
Does the Indian govt subsidize stocks? if so, I can never short them ;)
Bill, you are correct
and thats why you must exit if it breaks the bottom of the triangle and instead buy government backed stocks.
Mark,
As usual,,u have great sense of humor..
i will buy more if they start subsidizing stocks..
here being in US, we have less choice to trade India. One short would be IFN, which is rolling over after hitting double top at 21
by the way, what is your opinion generally on India.
LOL at Mark.
Ok, you do have good T/a skillz lol. Well actually, the wedge is a normal topping pattern. I see a couple on the SPX, which is why I think that is done soon and needs a nice retrace. But usually, the best play in the market, is to wait for the break, get out, then short the heck out of a backtest of the support.
But the R/R on long MA here is GREAT! Like 10+ to 1 8)
Mark, btw there's breaking news here:
http://www.theonion.com/content/video/treasury_department_issues?utm_source=a-section
Bill (don't feel like logging in)
funny video
ST,
I like India in the long run ... strangely the democratic govt creates more uncertainty than China. lol.
I guess if you swing trade FAS & FAZ.. you can make money
Anybody bought CUBA 3 days ago?? up 40% in one day..
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