Seeking Alpha

Robert Edwards'  Instablog

Robert Edwards
Send Message
Contrarian daytrading technician who specializes in locating high probability short term trades while predicting price movement directions with over 85% accuracy. Most of my trading involves either extremely short term micro scalping of stocks or commodities (using 1 minute bar charts), or swing... More
  • Very Troubled NQ Mobile (NQ) Just Gave A Buy Signal 6 comments
    Oct 31, 2013 6:20 AM | about stocks: NQ

    Short selling firm Muddy Waters on Thursday, October 24, 2013. published a scathing 80 page report, accusing Chinese firm NQ Mobile of being a fraud, lying about their customer base and cash levels, and placing a price target on the stock of under $1. The stock dove from $23 to less than $9 in a single day. Whether or not the story has any truth in it, the damage has been done. Muddy Waters had accomplished their goal and getting the stock price to fall. The panic that ensued piqued my interest. Being the "catching falling knife stock trader extraordinaire" that I am, I began trading this stock beginning the week of October 28, 2013. I have been handsomely rewarded. Take a look at the daily chart of NQ here:

    (click to enlarge)

    Americanbulls.com confirmed this stock is a buy, having just completed and confirmed a bullish harami pattern, click here. For a look at their recent recommended picks, click here. This stock is not without risk. If more news should come out, this stock could trade as low as $4 before finding a bottom. Also, the SEC could come out at any time and indefinitely halt trading in the stock, and the funds you have tied up in the stock are frozen. This stock is still a great day trading stock if one wants to scalp. Also, bulls outnumber the bears in the thinly traded aftermarket and premarket, so I love to buy shares just before the close, to sell to the bulls at higher prices in the aftermarket and next morning premarket sessions. Don't stay in to the opening because it is usually very weak, as bears return to feast on what they consider a dead carcass of a stock. I am currently flat as I am not nearly as bullish the stock above $12 as I am below $12. It has been a great winner and very fun ride for these past few days. Thanks NQ!

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in NQ over the next 72 hours.

    Stocks: NQ
Back To Robert Edwards' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (6)
Track new comments
  • johnpsychdoc
    , contributor
    Comments (7) | Send Message
     
    Robert,
    Boy am I glade you bought some at the lows as I did as well! Bought 2000 shares at 12.61 and was starting to doubt my sanity after all the fireworks this stock showed today. Here's to luck to the both of us come Monday....

     

    John
    2 Nov 2013, 09:44 AM Reply Like
  • Robert Edwards
    , contributor
    Comments (503) | Send Message
     
    Author’s reply » This stock is a trader and not a buy and holder. I am lightly long over the weekend as 12.50 did hold on Friday, despite the fact we did an engulfing candlestick pattern. The bears got into control again on Friday slamming the responses from the CEO of NQ and tried to reestablish the fraud narrative. I saw the selling coming into the stock when it was still above $15 and sent a caution warning in Stock Talk, warning we could quickly fall to $12. Within a few minutes in about 10 minute time frame, the stock fell from $15 to $12.61, eventually bounced back nearly to $14, bottomed at $12.50 and closed near the lows of the day. Wild swings will continue to buy all dips buy lightly and be ready to dump on all rallies. Play the swings properly and you can make a killing even if this company is eventually determined to be a fraud and the stock price goes to zero. The zero won't happen over night and lots of twists and turns to exploit in the short term. Just play small and be ready to lose entire investment at any moment.
    2 Nov 2013, 12:12 PM Reply Like
  • Robert Edwards
    , contributor
    Comments (503) | Send Message
     
    Author’s reply » On Friday, 11/8/13, I took profits in NQ and will probably stay out during the earnings report after the market closes on Tuesday, 11/12/13. We went down hard for 3 days, back up 3 days, down another 3 days, and now worked higher for 3 days.

     

    Earnings should be very bullish as the company will do everything it can to mess over the bears and announce the best earnings possible (whether true or not) and will probably do a double share buyback announcement as well. Stock could pop for a few minutes on the news and then get sold off hard by the bears. Could be the battle of the century.
    9 Nov 2013, 12:46 PM Reply Like
  • johnpsychdoc
    , contributor
    Comments (7) | Send Message
     
    Looks like NQ has been range bound since mid Nov and is finding support again at the 11.70 low of Nov 15. Any chance this is now set up for a bounce to it's ovehead resistance??
    10 Dec 2013, 08:47 PM Reply Like
  • Robert Edwards
    , contributor
    Comments (503) | Send Message
     
    Author’s reply » Under $12 it is probably near support, but could slip to $11 or a bit lower. If one bought very lightly, they should b able to sell on rallies at a profit, averaging down on buys and averaging out selling rallies.
    10 Dec 2013, 10:11 PM Reply Like
  • johnpsychdoc
    , contributor
    Comments (7) | Send Message
     
    Sorry for the late response. After the selling off shortly after your post bought into the rally and was able to close out my position with a slight gain. Have a great holiday and thank you for your hard work and support.

     

    John
    24 Dec 2013, 08:09 AM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.