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Friday, October 7, 2011

STMP

STMP has been on a tear ever since the gap up in late July, which resulted in a big increase in average daily volume, a signal that it was getting the market's attention. Since then it has followed the fibonacci scenario almost to perfection, first establishing a mid point of it's new trading range on the first move up, pulling back and establishing (actually exceeding it slightly) the top of the range before another pullback. It may be in the process of starting a new trading range, but I don;t like the v-shaped move it just did, and it is way too far above the 200dma to contemplate anything more than a very short term trade here. This probably needs to build a base here, but that depends on the market cooperating.

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