Sequenom ($SQNM)

Most people buy stocks with a limit loss of around 10% and when a stock hits that people will sell because they know nothing about stocks and when a stock will go up or down.  The stock was trading at $6.70 on Monday and someone who invested at that spot (which is a decent spot for that stock) already got stomped out on that 10% and they sold off the stock.  Now the stock is trading at $5.95 but the problem is people who base their investing off of solely technical analysis are the ones who are dropping the stock price.  The stock has fallen below both the 50 and 200 day moving averages which means you are supposed to sell off the stock.

The stock has dropped more than 11% in two days on high volume.  The reason for the high volume is because the technical analysts see a sell sign and they are selling the stock.  The day traders are like sharks in the water and see a $5.95 price and they know this stock hasn't seen that price in forever so they know it will shoot back up so they are buying.  Only to sell off when the stock makes a few % point move.  The suckers who sold after losing 10% are contributing to that high volume because they sold off the stock.

Remember this a ZERO SUM GAME someone wins and somebody loses.  Money is just transferred like MAGIC.  I'll tell you this I have only lost money on three stocks in my life (I'm 21, but have been involved since the 5th grade)...all of which are penny stocks.  I don't invest in those anymore because a situation like this occurs and you get caught in no man's land.  When that happens you feel like Billy Walters (notorious gambler) who said the real crooks aren't in casinos but on Wall Street.

I don't know what else to say but I look at the graph, study it, look at the fundamentals, and when the stock hits a price I like i buy the stock.  I will just put down the numbers at where I bought the stock and I'm pretty confident I have found the VALLEY or TROUGH of the stock.  I can find this because of OVERREACTION to news.  Investors are so stupid when they hear news and often overreact in one way or the other.


Potential VALLEY/TROUGH price $5.95....only time will tell if I am right or wrong on that assessment

Go Green Mutual Fund

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Krispy Kreme Doughnuts $KKD

Really like where this stock is right now for  a long-term play.  You can expect the stock to be over $8/share by March Madness (St. Patrick's Day area; March 17+) and over $10/share by the end of May.  Add KKD to your portfolio.