Pinetree Capital LTD (PNP) Chart Study, Weekly Market Outlook (DJIA)

 

Today we offer two views of PNP (Pinetree Capital):

 

 

The above charts are as of Wednesday's close.  On Thursday, the stock popped 21% higher on this news of a claimed net asset value of $0.79 

 

On a technical level, it's most compelling on consistent closes above $0.50 

 

In July and August it bottomed at $0.30 a few times, so we'd be selling on dips below that level.

 

 

 

Last Saturday we wrote: "Our immediate outlook is bearish [...] If you're short and the market is dropping, expect support circa 15300 and 15150.  On a big plunge there'd be support around 14900.  In other words, these would the levels at which to consider covering shorts."

Here's a look at the past few day's trading.  Wednesday's low was 15316.

If you're short, here's another reason to beware a bounce:

The DJIA uptrend since November remains intact, as seen above, but it should not hold for long. 

We'll remain bearish in the coming week.



Commentary: The average investor is terrible at timing the market

"By Brett Arends

The myth that this is an “unloved” bull market is just that — a myth.

Data shows that the ordinary retail public — Mom and Pop — are back on Wall Street, and how! According to the Investment Company Institute, the Great American Public has poured $92 billion into the stock market via stock mutual funds since the start of the year.

To put that in context, in the first seven months of last year — when the market was much lower — they withdrew $180 billion.

The last time the investing public jumped into the Wall Street pool with both feet like this was in 2007. And they are investing even more this time around. In the first seven months of 2007 they invested $85 billion into stock funds.

 

Over the years, you could have made a fortune just by buying stocks when Mom and Pop sold them and selling when they were buying. And they are buying, heavily, right now."

Read the full article via the link above. 









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