See some upside potential in this vicious selloff in MobileEye (MBLY)? Watch this video for the strategy. And let the video go all the way to the end before shutting it down. (September 10, 2015)
MBLY SP-500
Mobileye ( NYSE:MBLY ); or as I like to call it “Mobilee.” Citron Research, wonderful company, I’m sure there are a lot of nice people working there, but there’s no possible way that their financials can justify the market cap that this company has. Holy Twitter! Their initial price target I think was like $25.00, maybe it was $35.00; it doesn’t really matter. It was a low price target and then their eventual price target, though I don’t understand what the difference is, is like $10.00. I don’t know about that. I don’t care about that.
I don’t have any products that are Mobileye ( NYSE:MBLY ) products. I’ve called this the “George Jetson” company, and it is, at least to me ( I made that up). But here’s my point, this is setting up a trading opportunity to the upside. I’m not talking about buying this wonderful company on the dip, because Citron Research is a bunch of knuckleheads. That’s not what I’m saying. They may very well be right. What I’m talking about is this chart, that’s what I’m talking about. In fact I’m going to slap some stochastics on here. Here, momentum indicator.
A lot of folks say, “Oh, this is an overbought oversold indicator.” No, that’s for the intellectual lazy, it’s really not, it’s a momentum indicator by George Lane, you could look it up. They’ve been trending lower for a while. This is not oversold yet. Let me stretch this out. Stochastics are not oversold yet, they’re right about at the 50 mark. What you’ve got to hope for, I know hope isn’t a method, but it is a method of analysis here. What you want to hope for is that there’s more selling that gets this stock to have even more downside momentum. And then this what you want to do; this is important.
You wait for the first higher close. You want to wait for a candle, for a bar that looks like this one or that one. This one would be a wonderful one, if you could see this. Because what this reflects is a big intraday swing and then an open/close right near the middle of the range. That reflects indecision between the bulls and the bears. Like who’s winning? Okay, trust me, there’s no indecision there, advantage bears. There’s no indecision there, advantage bears.
So what you want to do, forget about the fact that this is Mobileye ( NYSE:MBLY ), it could be DuPont, it doesn’t matter. Wait for the stock to give you a positive close. I’m not saying a close above this level here or something like that. I’m talking about a close that is higher than the open on any given day. That is a trade. I don’t know how far up it will go, but I’m just telling you as a function of buying and selling dynamics, stock dynamics. You don’t get a stock that falls 30 percent from top to bottom in a month, less than a month. You don’t get a stock that does that without some kind of snap-back rally, and watch volume as well.
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