CMGI

[KCScott]

I'm in for 3,000 @ 1.80 -

Nice chart Shawfund - Applaud

[ScottishTrader]

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   

[David Randolph]

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.

[metro]

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.

[David Randolph]

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.

[David Randolph]

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.

[ScottishTrader]

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.

[Amarens]

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

[kdcalgary]

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

[ScottishTrader]

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

[Amarens]

No problem Scottish Trader, was acoording to your plan so I expected it. Wasn't around yesterday to get out  Will today though!

Amarens

[setravis]

Update located here....

http://www.3stocksonfire.org/trading/index.php?topic=299.msg33616#msg33616

[setravis]

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