VCST
Q: There's just no buying pressure in any of the tech issues. Many of the losers for the day are doing so in sympathy to the net plays like AOL and AMZN even though they do not relate. EMC, VCST, SEEK and many others are getting hit even though the basics and future look good.
A:
I wasn't looking to dayplay VCST, but truthfully, any stock is a dayplay,
as long as there is enough volume and volatility. I like trading stocks
that have a 2-10% differential between their daily highs and lows, although
sometimes I play on the more volatile ones.
I was looking to hold VCST for a week, thinking it would be up to at leas
12 by the end of this week, with 14 even being a possibility. I still think
it will hit 12 this week, provided Nasdaq turns around. I didn't buy VCST
on your recommendation, although you did bring the stock to my attention.
I bought the stock because I could see that it had been beaten down all week
with the rest of Nasdaq, and also because its chart on Friday looked like
the trend had reversed, and it was ready to begin moving forward once again.
I was wrong about today (both with VCST and tech stocks in general), but I'm
still going to hold my position all week. I still believe in it.
I agree any stock can be played as a day trade as long as the volume
is there. My point was that I do not expect any major price increase
as seen in other Internet plays during a single day. This stock will
slowly increase in price over the next 2 months.
I think today is a bad day to try and input into any trend data on a
stock like VCST into an overall picture of where it's going. Odds are
there was a lot of selling to cover margins today on other stocks like
AOL, CMGI, etc. In fact the late day price increase went against the
market.