Time to Book Your SINA Profits?
If you are an active trader, and came into Sina (NASDAQ:SINA) sometime during my ‘pounding the table’ phase on the name, I’d consider taking some off the table to lock in profits (and try to buy back later) as the name is beginning to go parabolic. I tend to get antsy when stocks start to break away from their 10 day moving average like this, but I am relatively conservative in my trading style. I am not implying the run is over, as we are officially in “lemming mode” now as people pile in with no regard to price or value.
Since the first mention publicly in December, the stock is up over 65%. In just the past 2.5 weeks, it is up 35%!
Even Sohu.com (NASDAQ:SOHU) which is a similar type of company but without Weibo (“Chinese Twitter”) inside is seeing a breakout as speculators are trying to find something similar to Sina to play. When the speculator class begins to look for lower quality merchandise as a parallel plaything, it’s usually another warning sign.
This is a guest post written by Trader Mark who runs the blog Fund My Mutual Fund.