From: SiliconAlley | 10/7/2017 8:17:25 PM | | | | For those who may be following the wisdom of Investor's Business Daily, Friday was a classic "stall day." It comes in many forms, but this one was a small gain and a close that was in the lower half of the daily range.
Whether you believe in this or not, there is an army of traders that do, and this plays into market psychology. I am expecting that absent any news on resolution of supply concerns, that this stock is going to rapidly break down and turn treacherous.
The stock is currently being held up by hope, and the failure of certain analysts to timely downgrade amid deteriorating fundamentals. This provides powerful players time to exit, after which those who didn't heed the warning signs will be left holding the bag. I expect to start seeing additional downgrades this coming week.
If you are wanting to sell, but not doing so due to the tax hit, my recommendation is to ignore the tax side of the equation and just get out. There is just too much risk between now and January. There was a time when you could shift your gain into the following year through the sale of deep in the money calls, but that loophole has been closed and will result in the reclassification of a long term gain into a short term gain. |
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