CMGI, Inc.(CMGI). The Group's principal activity is to provide industry-leading global supply chain management services and marketing distribution solutions.
Here's that pattern again, a trap has been made and now every bear has to run for the exit, not in the long term, not in a few days, but right now:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=257;image)
Altough we have a long white marubozu on the candle chart I have to wait to see the reaction to that descending blue trendline. If CMGI opens about unchanged and then crosses $2 I'll have to buy it.
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... that descending trendline has put on a brake on CMGI's advance. I'll continue watching the stock until it crosses that resistance line.
CMGI, Inc. (CMGI). The Group's principal activity is to provide industry-leading global supply chain management services and marketing distribution solutions.
Some days ago I tried to buy CMGI, but I asked for the stock to cross the $2 resistance. Back then it couldn't do that. But now the train is moving and now is the right time to jump in and buy CMGI:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=441;image)
I don't like the technical picture of the Nasdaq as a whole (VXN is at an all time low - dangerous (http://www.3stocksonfire.org/trading/index.php?topic=309.0)), but that doesn't mean anything for CMGI in the short term.
I just hope it doesn't open gap up - if that happens I won't buy. Lower open and higher close is what we want.
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Interesting, I found another blog that has the exact same rec., using the same words!
Is someone cutting and pasting your recs as their own?
Do you post on another blog?
Email and I will give you the link.
Are you going to wait for the open to insure it doesn't gap up before buying?
thx,
elr
... on any other board. I've sent you a private message (trough this board) so you can give me the link.
Thanks boatguy ! :)
... I'll buy just if open < $2.20. I'll watch it on the pre-market and buy the open if it is set to be lower than yesterday's high.
If not I'll wait for another chance, or another stock, there are 11000 competing for my money ;)
Link sent-
Looks like it posted 20 min or so after your rec.
Lower open as I needed, I buy without doubt.
Big battle here at $2.34 resistance today, vol came it as it got nearer either it gets sent back and fails to advance or will break through with some power will see...
... as aussietrader points out, we have a minor resistance at $2.34. But I see CMGI is now in a better position to cross that level than in the past ... you see, volume is higher this time than the last time, so more money is involved in betting CMGI will go higher. More money wins over less money, no question about that. The only thing I'm worried about is the general market (it may correct now - but that's hard to predict - read Quote from Jesse (http://www.3stocksonfire.org/trading/index.php?topic=375.0)) but I think it is possible for CMGI to disconnect from the general market in the short term.
Lets see what it does now
... there's nothing for a man to do with this stock than to sit tight and hope profits grow more.
Heads up:
Earnings for CMGI on Monday, June 6th, After market close. Are you holding through?
WALTHAM, Mass.--(BUSINESS WIRE)--May 23, 2005--CMGI, Inc. (Nasdaq: CMGI - News) will release financial results for its third fiscal quarter of fiscal year 2005, ended April 30, 2005, on Monday, June 6, 2005 after the market closes.
http://biz.yahoo.com/bw/050523/235943.html?.v=1
... let me see. I'm no financial analyst so I can't tell how the results are going to be (neither they do ;D). I know the stock was doing great with several consecutive white candles, so many people were having profits from CMGI.
Today I see hard selling in the stock, probably because of that earnings release. People are with profits and are selling because they're afraid of losing those profits. That's not a good motive to sell, I believe bears are wrong on CMGI.
I'll probably hold.
CMGI was doing fine until Cramer made negative comments about $2 stocks after hours yesterday. He did lump CMGI in this group. From the minute he made these statements, CMGI dropped from 2.41 to 2.32 afterhours. Investors saw that movement in the pre-market and bailed. I will wait and see how things look Monday before making a sell decision. I do know i have lost more than gained by holding through earnings. Being the coward i am, i will probably sell and take my small profit.
«Risk Trumps Reward in $2 Stocks Game (http://www.thestreet.com/_tscs/pom/pomrmy/10226323.html)», Cramer did.
And "investors" bailed out of CMGI. Come on, according to Cramer's text, the only crime this stock did is that it is quoted at around $2 a share. On my lecture that's not a crime or a benefit, the absolute price of a stock is no motive to buy or sell. Only changes matter.
I'm amazed how the stock could react the way it did from his words ... but it did, so we have that red candle on the chart below. Of course I won't follow the crowd since they're usually wrong ... and I'll hold the stock just to see what happens.
THat's the way to play it. Cramer says sell, you know to hold it. I think earnings will be good. I have noticed that when a stock is downgraded and has a sell off, then in about three to four days it's upgraded again, the stock shoots back up. I am going to keep following this theory. Or maybe this is old info.
I do still have CMGI though and will watch today before I decide how to play. I have been on both the receiving end and the benefit end of earnings moves, sometimes it is best just to step aside whilst the 'reaction' plays out. As yet I am undecided.
Mike
looking great!!!!!!!
http://www.stockhouse.com/news/news.asp?newsid=2796262&tick=CMGI
Hi, David,
Would you please comment on today's afterhour selloff?
Thanks,
John
My decision to hold through erns or not was made for me by my stop which activated whne CMGI went through the 9EMA earlier in the trading day.
Mike
CMGI has a problem - there are so much bagholders in it ! The stock was one of the first to come down hard after the internet bubble so it was one of the favorites of the public who wants to buy the cheapest stocks available. It looks like those people still have CMGI, so it's very hard for the stock to advance, it needs a compleat clean up or really powerful demand.
I believe earnings were good but the market response was a down move - that's bearish. But I don't care, at yesterday's close I had an open profit of 5% on CMGI, now it seems I'm losing, I don't want to let a profit turn into a loss (or let a small loss turn into a bigger one), so I'm selling at today's open.
I never want to ear about this stock again !
CMGI finally close the gap between 1,98-2,02!! Prepared to another up leg? ???
Any thoughts?
There is not more than 1 or 2 days to wait before we will know if CMGI crosses the resistance line from this flag?
I say we should wait until around 2.02 before thinking of jumping in it? (2.01 is the highest level in 5 days)
CMGY could target 2.6 easily IMO.
What do you thing?
I'm in on this one for a couple of weeks now at $1.94 and patiently waiting. That lower rail of the flag is part of a 2 year trend line that it has been hugging so let's hope it holds. I know last year at this time the stock dropped below the trend line by a bit but it had a very strong rally at the end of the year. This stock can be very frustrating. Watching closely
Quote from: assamo on June 07, 2005, 10:38:23 AM
CMGI finally close the gap between 1,98-2,02!! Prepared to another up leg? ???
Any thoughts?
Nah, CMGI didn't do nothing since I sold it. Boring stock with bags of bagholders in it. Someday, who knows?
I believe we're at the final stages of the bull market that started on March 2003 and took the S&P 500 from a low of 780 to 1247 points. I don't know if it will take days or weeks or even months but there are several signs that a long term bear market could unfold again.
I've seen (or at least studied) many bull and bear markets since stock market history began and they all have pretty much the same behaviour when they come to an end. At the final stages of a bull market investors pick up the forgotten stocks, those that were left in the ground as others rose immensely.
Those stocks deserve their place in the sun too, but there's not much time now. So they will rise fast before everything falls appart and the general market starts trending down.
I'm not particularly interested on the specifics of each stock, since they are acting as a group and will continue to do so, based almost exclusively on mass behaviour.
You see, now everything's gone up, the energy bubble is now completely unfolding and getting to an end too, so big and small speculators as a mob will jump on these liquid and low priced stocks. I see 20 to 100% upside potential in each one of them in a few weeks time.
CMGI fully qualifies, it is one of those abandoned angels. I will buy CMGI for the 3 Stocks on Fire Portfolio at today's open.
Ahaa!!
I was going to buy CMGI today at the open anyway :D
Now I've got 3SOF on my side, even better ;)
Good pick David ;D
CMGI weekly chart from 2001-2005.
Year-end rally happened every year since 2001.
It has been profitable since 1st qt 2005.
I'm in for 3,000 @ 1.80 -
Nice chart Shawfund - Applaud
Anyone looking for more coverage, don't forget to check the CMGI thread in stock picking:
http://www.3stocksonfire.org/trading/index.php?topic=299.0
here's hoping we just posted the low of the day @ 1.75, wasn't expecting so much pullback :-\
I guess my reasoning was right, but those earnings news got in the way ... the reason why CMGI will rise over the coming weeks has little to do with earnings.
The news made me buy on a gap up, together with the crowd. If I were day trading or not running this website I wouldn't have bought at the open, I would have waited for the gap to be filled, at least partially. So, what would I do now that the gap is closed? I would buy CMGI.
Since I bought it already, I feel fine with my position. People who bought on the news were already punished somewhat and the stock now has a firm technical backup (with no holes) to push higher.
Taking into account what happened with the general market in the final couple hours of trading, I guess CMGI's and other similar stocks ended up quite well.
I will continue holding CMGI, my short term target is $2.7.
The 9-day is at about 1.68 so may bounce there and trend line at 1.63 and vol was lower yesterday. This is a tricky stock as it has a long history of big moves up on high volume followed by sell offs but the market may be ready for a bounce maybe even today if we can get a spurt of panic selling.
I didn't like yesterday's action on CMGI. I'm not willing to give it much room to fluctuate. I'll sell if the stock is set to close below $1.70, which is a short term ascending trendline coming from the lows.
Well, I did sell CMGI at $1.60, for a 14% loss >:( That was the plan, so I executed the plan.
Probably timing completely spoiled my trading plan on CMGI. That earnings news made me buy too high and probably I've sold at support now.
The lesson I take from this loss is that I need to be more carefull when I buy a group of stocks because of a general market behavior. Even though my motivation to buy doesn't come from company specifics, I still need to pay attention to them, so this kind of stupid buying on the news together with the crowd doesn't happen again.
Well I don't know about anyone else, but I decided to stick with CMGI, as it had not violated the descending trendline, and I thought it might get a bounce off that level, which fortunately, today it did:) And along the way, it looks like it has consolidated a little bit of support at 1.60, which is good.
I did exactly the same as David, and bought in too high off the break on this one, so am still sitting on a reasonable loss, but I think this one may pull back a bit more and should be worth holding onto for a bit longer. Who knows, maybe it still has legs for that crazy volume breakout it likes to throw out every year.
If I am going to be a longer term holder though, I need to get some more fundamentals on this one - anyone got any thoughts??
Right now my target is a 1.85 break even, and then see. My max pain sits at 1.60, well I'll call it a drop below 1.59, which was its low of the last few days.
ScottishTrader,
I'm still in there with you ;). Had the same analysis, for me $ 1,60 is the support line. As long as it does not close on that I'll stick with it.
Maybe the present quick buy and sell actions fit some, but it does not fit me (given my plan).
Let's keep updated on our thoughts ;)
Amarens
Is this a buy now at $1.60?
Im new to this board and would love to have some recommended reading for technical analysis.
thanks
Apologies Amarens,
I should have said that I sold out yesterday @ 1.63.
On balance wasn't comfortable holding and am not sure we'll see another rebound, as this seems too much like a failed breakout.
Could though, but for me, i'd need some indicators that it is going to do so, and don't see any right now.
kdcalgary, I wouldn't go in on this one now if I were you - it may find support here at 1.60, but the overall trend is still bearish, andd this little spike hasn't done enough to reverse that, I believe
No problem Scottish Trader, was acoording to your plan so I expected it. Wasn't around yesterday to get out >:( Will today though!
Amarens
Update located here....
http://www.3stocksonfire.org/trading/index.php?topic=299.msg33616#msg33616
The CMGI Threads in Previous 3SOF Picks
Have been merged.
Got the go ahead to do so from Ramsburg.
I will be working here on this board to merge other threads also.
Good trading to all !
Regards,
Your fellow trader @3SOF
setravis