Discount coupon on Groupon? (July 11, 2012)
GRPN
I’m Dan Fitzpatrick at StockMarketMentor.com on July 11th, that’s 7-11, 2012. I want to look at Groupon ( $GRPN Groupon Inc ) today and here’s why. The stock got a little notoriety today because it’s at the lowest low in its history which goes back to, of course to late 2011. Now I’ve mentioned this stock before, I got kind of ripped for it a little bit, but that’s okay. I have broad shoulders and callouses on my hind end, so I’m kind of used to getting my butt kicked. But my comment on Groupon ( $GRPN Groupon Inc ) was, this company, it’s like Dude, they sell coupons, they have really low barriers to entry; here’s their website. Do you know how long it would take to develop a website like this; I mean after you register a domain name on GoDaddy.com and put this thing together? Now I know what you’re saying, if you’re a big Groupon ( $GRPN Groupon Inc ) fan, both of you, “It’s all in the database,” okay that’s fine. The point is, the barrier to entry for coupons sales is about nil. You could go start a business like that before you finish looking at my video. The reason Groupon ( $GRPN Groupon Inc ) is going down is because the growth is pretty much over. Now, some can say, “Well, you’re wrong,” but the crowd, the stock, is telling me that I’m right; or let me put it another way that makes it sound less like it’s all about me. I am simply telling you what the crowd is saying, and here’s how it works. Look at where the big volume is, look at where the big volume has been; it’s been right here. So you say, “All right, there’s a lot of trading activity going around,” and guys this is not that difficult, and it actually doesn’t get more complex than this sometimes. Where’s all the trading activity been? It’s been in this box. Okay, well we can’t forget about this stuff, the up volume here, because you see what happened, the stock moved up by the fifty day moving average for two days, actually for one day, and then it opened up there and traded lower; that was the big volume. So let’s just take away all of this stuff and start again after that. Where’s the big volume? It’s back in this time zone here over the past couple months right? Which way has the been price going? Well, by golly, it’s been going lower. I’m telling you, you can get all the on balance volume indicators or accumulation distribution indicators or money flow, or whatever you want to do; but none of those trumps the fact that the stock is trending lower and trading activity is high. What’s this telling you? It’s telling you sellers over buyers. In other words, the aggressiveness of sellers is consistently outweighing or outmatching the aggressiveness of buyers; and the trading activity is greater than it had been here; even while the stock continued to move lower. So, if you were the guy that bought Groupon ( $GRPN Groupon Inc ) today, you need to sell it tomorrow, unless you’re doing it for a day trade or something, in which case I’d say, “Can’t you find something else that’s a little more interesting and has a little more upside potential?” This is a stock that’s just coming out of a volatility squeeze right here. My bet is, this triple seven here, hey, lucky day right? Seven, seven, seven, my bet is this becomes six, six, six, sooner than you know; so I want you to stay away from Groupon ( $GRPN Groupon Inc ). If you want to go patronize, or patronize, or whatever, the website, great; but do not buy this stock; in fact frankly, if you can borrow some, why not short it? Free Chart