Hi Marty,
You mentioned you took a swing on DOCN, did you open it Friday morning? Was this one of the stocks you were looking at when you said it would be wise to take a 5% position?
do you or can you post your trades anywhere?
This name is one I am very interested in but was waiting for it to capture its 200 dma. Not sure if that is a mistake
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I would not recommend anyone to buy any stock below its 50 or 200 simple moving averages. I took a swing with a small (2%) position in DOCN only because of the earnings reaction. I am taking a risk (with a 5% stop-loss) that is has made a bottom. If I am right, then I bought a great stock at a great price. If I am wrong, then I get stopped out!
I do not think you are making a mistake by waiting for it to trade above its 200sma. It is always wise to allow a stock, and the stock market to prove itself. If DOCN is going to be a great stock, then there will be plenty of opportunities to buy that stock.
Currently DOCN is trading at 7.2% below its 50sma. Even if it rallies up to that level, it will see some pretty stiff resistance. There are many recent investors who bought the stock above the 50sma ($64.50) who may want to sell once they get "back to even!"
If we get a follow through day this week, then I will be buying stocks that are leaders and trading above their 50sma. PANW is one stock that I really like right now.
Regards,
Marty
