Posted by 16 December 2004

OSIP, Long or Short?

I just saw that JWK at Public Co$ bought OSIP recently at $49. That post stood out to me because I shorted OSIP yesterday at 48.31. I’m always curious to know why somebody view of a stock is opposite mine. About the only case I can see for buying OSIP is that the current bounce continues and can take it back up to the gap from November 19. Here’s why I see it as a short:

Who knows, since we both have tight stops on it maybe we’ll both lose money on it. :-)

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Comments

  1. Posted by Scott on December 16, 2004 at 4:13 pm

    Sure looks like a short to me. Clear downtrend. The little rally almost made it back to it’s 22-day ema (well, close, anyway), which is right in the middle of my channel — a good place to short.

  2. Posted by demnuts on December 16, 2004 at 5:59 pm

    how tight is a tight stop on a $50 dollar stock?

  3. Posted by muckdog on December 16, 2004 at 6:22 pm

    Everyone has the plate of cookies and glass of milk set out for Santa and the Santa Claus rally. The Investors Intelligence numbers released show the highest number of bulls since 1987. Combine that, with the notion by many that 2005 will be a bad economic year, and I think there could be trouble brewin’…

  4. Posted by Michael on December 16, 2004 at 8:02 pm

    Demnuts,

    My stops are always a max of 5% from entry and usually much less than that. In this case my initial stop was above yesterday’s high of 50.00 . I’v ealready moved it down to at least break even.

  5. Posted by JWK on December 17, 2004 at 2:11 pm

    Hi Mike,

    Well, I lost money on this one (believe it or not). I took the long position based on some technical indicators. I saw the stock as being “over sold.” I thought the stock was good for a little bounce. Something over $50. I had no idea that it would gap up $22.

  6. Posted by Michael on December 17, 2004 at 2:22 pm

    I guess I jinxed both of us. :-(