What’s Your Take on SINO and Where’s Bottom?
Previous thoughts HERE.
SINO is probably the best prospect for trading Tuesday. It’s going to remain volatile providing both multi dollar swings up and multi dollar swings down. I don’t think it will dip too much more from here (at least tomorrow - I’d expect a dip out of open towards the $16-16.50 level) but as always I could be completely wrong. No one knows its future yet (which is what leads to its volatility) there will be a battle both long and short. Friday had a large walk down all day after the big spike to start the day which got everyones attention to start chasing - as anticipated HERE. After the big move out of open (spike to $27.49) it consolidated through most of the afternoon before beginning to make lower lows through out the second half of the day .. leaving all longs scratching their head as to why they bought so high and created a domino effect nearing close scaring the new buyers into selling into the weakness. The big question is - are the buyers at these levels just buyers because they think its bottom, or is it big buyers that will soak up the float and support a move higher. If its anything like EFUT which went from $6.80s to $15 back down to $10 before taking off to new highs (and FFHL for that matter) its going to get very difficult for the trader if its controlled like EFUT was. At any moment a big buyer can show weakness to accumulate at a lower price.. they will. With EFUT there numerious fake breakouts before finally taking off that bored out all longs.
Another reason for a big sell off is DRYS performance over the last few days. Also keep in mind, its all hypothetical that it may carry the same momentum that EFUT had, its possible that was the biggest move this stock will have for months.
SINO
DRYS
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