Here goes another step down…
There’s the 79 & 89 MA support right there supporting the price; but these technical jargon doesn’t mean anything when everyone is waiting to see if Greece is going to default on their loan payments. What little hope do we have that Greece may just bend to the will and get the bail-out money? We can either have a big gap up or down when the final answer is giving. One way or the other, we need to prepare for the event.
With a lot of cash sitting around after liquidating the three biotech stocks yesterday, I was looking for something I could put the money to work. I did not have to look far when I found out that $MEI disappointed in their light guidance that price dropped a whopping 30%. I’ve been watching this stock looking for an opportunity to get in and today drop gave me the window. $MEI sell touch screen interface in automobile and all kind of industrial gagdets. In today earnings conference, $MEI is now looking at the opportunity to break into the medical equipment sector with better margin. Potential revenues from this medical equipment sector has not been factored into their light guidance for 2016 fiscal year; hence the huge drop. Furthermore, $MEI is a profitable company with a very healthy balance sheet. I’m happy that I was able to buy $MEI today with such bargain price.
Notice that from the weekly chart above, price bounced off the 50% Fib retracement (from 2012 low and 2015 high) as well as the support from early November 2013. The question now is will the Greece default cause it to go even lower even after today big drop?
$LRAD is holding its ground and I also added enough to round up my position size.
Now, I just need to sit and wait.
Thanks to $MEI closing higher than my entry price, my port was able to squeeze out 0.2% despite a minor $LRAD drawdown. YTD gain is now at 8.4%.
LRAD, MEI and 41% cash.
My 2 cents.
Categories: Daily trading Journal