Are you ready for 58.com (WUBA)? Here’s your trade! (November 10, 2017)
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WUBA, 58.com ( NYSE:WUBA ); they report earnings on Monday. I want to take a look at this and see how we can trade it.
First of all, you can see when they started trading (this is a weekly chart) the stock has been kind of a mess, it has been very tough to hold. Frankly, I don’t know why anybody would want to hold this stock; I am talking about for a long-term deal. So great! You buy it here and you can see you would be up a lot, 200 and some odd percent. But you are a long-term holder and you ride this stock up to this level and then you are really going to hang all the way to a 40 percent retracement. Then up here, let’s say you did that, you are going to hang onto this, this is Armageddon stuff, this is a 2007 market meltdown. This is 2000 internet bubble, all of that kind of stuff. You are not going to ride a stock like this down.
Compare that with some of the others that you would have been able to ride at the same time that all kind of seemed to do pretty good. Facebook ( NASDAQ:FB ), NVIDIA ( NASDAQ:NVDA ). And how about this one, Alibaba ( NYSE:BABA )? These are the hits that just keep coming. Even some of the Chinese stocks. Look at these things, New Oriental Education & Tech ( NYSE:EDU ). They have had it a little bit tough lately, but they are all good.
Now we are back to WUBA ( NYSE:WUBA ). This is a bear; let’s look at the daily chart though. We can do short-term stuff here. We stretch this out so we have a little room to work with, we want some upside here. The stock has been trading sideways.
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