Here’s your trade on Sina Corp (SINA) (June 30, 2014)
I want to look at Sina ( NASDAQ:SINA ) here; I think this stock is moving higher. Today, before the afternoon drift, so to speak, this stock really looked powerful, but it’s still pretty powerful. You can see what happened here, the stock was in a volatility squeeze, basically in this range, then it broke out last week and then for three days, Wednesday, Thursday, and Friday it really traded in a fairly tight range, but did not come back into the prior range; that’s what you want to see.
So I don’t look at today’s price movement above last Wednesday’s high of 49.64, I don’t look at this as a failure, because it closed off the high. I actually look at this as a buying opportunity, because again, the market was kind of weak into the afternoon, so it’s really not surprising that Sina ( NASDAQ:SINA ) would also start drifting lower. So what I’d suggest on this one is, use the 50-day moving average as a reference. Right now it’s 47.33, you can see where the stock’s trading now, mid 49’s, so you keep a stop just below this level and you’ve got an entry that’s close to your stop point. You can buy this stock and wait for it to move higher and then take the money and run, do the Steve Miller trade.
Free Chart