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Playing & Trading Strategy

After a stock adjusts, market forces drive the prices...people buying selling / shorting covering...

Posted by: Flash on Dec 18, 08:02 in response to JustaGuy's post Why can the market settle on a direction for Hobbit?

Many players may think it has legs, but many other players also "play the players" and take advantage of swings up or down with a movie stock.

Remember that the only time the price matters is prior to opening weekend, and when that movie stock delists... If you think a stock will delist much higher - then hold it long.  If you think it will delist much lower, you can short it.  Everything that happens in between those 2 events is merely market forces... players that are buying and selling, or shorting and covering...causing the price to rise or fall.

If you're confident that it will delist higher (or lower), then don't worry about what happens in between the adjust and the delist... those 2 times are the only times the price should matter to you if you are holding on to a stock after the adjust.

Why can the market settle on a direction for Hobbit? JustaGuy Dec 18, 07:29

there are thousands of traders. you cant expect every single one to hold it the exact same way. islander Dec 18, 07:34

Yes, we can expect them to. :P {nm} DTravel Dec 18, 10:37

After a stock adjusts, market forces drive the prices...people buying selling / shorting covering... Flash Dec 18, 08:02

Well, I'd say there's a third time when the price matters - when you buy/short it. :) {nm} DTravel Dec 18, 10:38

If you buy a stock the day before it opens, and I bought it 6 months ago... Flash Dec 19, 07:58

OK, I'll grow a pair...thanks! {nm} JustaGuy Dec 18, 08:31

They don't just spontaneously pop up. You have to be born with them. {nm} elchan Dec 19, 13:32

It's an unusual stock JohnTEQP Dec 18, 08:55

is your hobbit stock taking an unexpected journey? {nm} RazorHawk Dec 18, 12:00

Leading to the Desolation of his Stock. {nm} DTravel Dec 18, 12:56

the stock price was there, but now its back again? {nm} RazorHawk Dec 18, 18:57

He couldn't handle the Sting. {nm} DTravel Dec 19, 11:35

Always have 2 options, play the player and play the adjust. Personally I am playing the adjust on this one... {nm} PVL Admin Dec 18, 21:10

I think at this point it will stay down. The Monday numbers just don't show it to be on a trajectory to anywhere close to $250M in 4 weeks. elchan Dec 18, 22:42

Well I guess if you add the extra $56M that HOBIT made on it's opening weekend, it just might squeeze by with a little room to spare. {nm} elchan Dec 18, 22:50

and not all kids/families off for Xmas vacation yet, either. Lots of weekday viewing opportunities coming in the next couple weeks {nm} BSmurf Dec 19, 07:24

Sure the same scenario played for the first movie too, and it's heading the same way. We'll see if the Tues numbers track the same. {nm} elchan Dec 19, 08:19





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