After watching some other Chinese plays retrace (see my chart on CYOU from Friday), I have found that a pullback on FUQI is very likely. Of course, we at iBC like this stock a lot, but we also know when it’s a good time to take profits. Mind you I already sold this over a week ago and have been monitoring it, since this is on a high priority watch for me. Thus, if you are still long, I think it’s time to cut back on this position significantly. Friday already saw a 3% decline, so if you get a reflexive bounce early this week I would sell into it.
Meanwhile, there’s a brief swing play in the making. I have buy on the retracement to the 23-24 level (too tough to give exact #, but there will be a heavy drop soon that should take us there). When this does occur I will do a 2-step buy with a quick sell near Friday’s intraday levels (approx 27.xx).
… that goes for CFSG players too. I really like that stock, but keep an eye out. all pullbacks in CFSGs are buys. Well, not “all”, but you know what i mean.
Nailed this call.
Nice call, Gio! Did you do the U-turn and go long?
No not yet… my entry point is betweenn 23-24. I’m going more conservative near the lower end. for now, monitor volume. we need at least one more large selling block.
Hey Gio, yesterday the VIX index broke the rage that its been trading in the for past couple of months or so and now it sits ontop of support..any ideas? A bear trap or a bull trap?
The VIX needs to redefine itself. In other words, we have to find a new range to determine what is complacency and what is panic. until we get that “range” it will be hard to say. but for now, moving away from sentiment, today’s 80 point rebound on Dow looks like a reflexive bounce on a few days of profit-taking. Therefore, avoid adding new longs into this “rally.”
I’m liking CFSG right here. CISG also looks good for +5-10% rebound.
PEET looks like a short, as long as GMCR stays under 60 if you’re looking for a conservative exit.
FUQI at 23. It rudely left a couple gaps overhead though on it’s way down, though. Not sure if I should buy here or not.
I’m buying here. I’m still sticking to my strategy… I mean so far, it’s following it quite well.
changed my mind. i’m not buying here. but i like the intraday strength. 23.10 is easier for me.