How’s your Fitbit (FIT) working? Here’s how the stock is working. (January 27, 2016)

by DAN
I want to look at Fitbit ( NYSE:FIT ); don’t want to buy it, but I want to look at it. I just checked the news on this and first of all, it’s in a downtrend. I think it’s going to go lower so I don’t think you want to buy it.  You can probably stop listening right there, Boom!

I’ve been looking at the news flow here. This company has had upgrades, it’s had downgrades, it’s had every kind of opinion, both positive and negative rendered, RECENTLY, and the stock is still down. It also recently had an all-time closing low, this is it. I could go to the weekly chart to get you a better view, but you don’t need it, this is it. So this stock is still looking for a low and I’m not inclined to try and catch this falling knife. Frankly, I want you to think about it, even if the stock does reverse a bit, how far up is it going to go before it runs into selling? Not that far.

Here’s really what you need to know: Other than that happy guy who bought right down here, for about 5 cents, everybody who has bought this stock is a loser. They are not happy about it and this is why they are selling. So IF this stock does start to get some demand here, lets say at $15.00, what do you think these folks in the red box are going to do? They are going to say, “Yippee, somebody wants to buy my stock for more than it was selling for yesterday. You know what? I have to dump this pig. I’m going to get a Jawbone, and I’m going to be done with the darn thing.” I like the whole fitness band thing, I really do, but I don’t like Fitbit. I think it’s not where you want to be right now.

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