Significance of phrasing for stock ranges?

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StillsMurmur
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Significance of phrasing for stock ranges?

Post by StillsMurmur »

RE: Market Update Dec 21.

In the Dec 21 Market Update, for 3 stocks RAMP, BCO, and HUN the updates appeared to lower the fill prices as opposed to the usual phrasing of “open another position at…”

In Oct 31 and Nov 30 issues: RAMP was recommended at 47-48.6, though the stock never reached those levels (at least since I’ve been following (end of October). Fills could have been reported before that, but my question still applies.

Is the intent still that I open a position if RAMP falls to 47-48.6 and a second position if it falls to 39-42, or forget about 47-48.6 and only open a position at the lower levels?
The same question applies to HUN (18-19 only) or still open first position at 21-22?
And also for BCO: only open a position at 42-45 or still open a position at 51-52.5?

I suspect the answer for all 3 questions is that the slight phrasing inconsistency is not intentional and I should open a position at both the old higher range and the new lower range if I can, but since I am new I want to be sure that I'm actually correct on that.

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Eric
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Re: Significance of phrasing for stock ranges?

Post by Eric »

All of those plays have "Updated" next to them indicating you should ignore previous guidance and follow the updated guidance.

You should only place a new order for BCO at $42-$45 if you have sold the rest of your BCO position for $81+
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StillsMurmur
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Re: Significance of phrasing for stock ranges?

Post by StillsMurmur »

I appreciate your response, but I'm having trouble understanding the rationale.

To the first point, could admin please confirm that "Updated" does, in fact, not just mean new information, but to disregard all previous information. The importance of this distinction is evidenced in my question about HUN. Since the stock price has gone up so much, it isn't intuitively obvious why it is only desirable to purchase the stock if it falls far below where everyone else invested their first lot. Simply falling to the original entry point (21-22) is no longer good enough, only buy if it falls to 18-19?

To the second point, why would it matter if I had previously been invested in BCO or not? If the stock falls to $44 the risk-benefit either favors investment at that level or not. Why should it make a difference if I already bought and sold one lot?

Your response depends on your assertion that if you miss the original entry point, it is never a good idea to enter at a later date, even if you hit the same parameters. That doesn't fit my understanding with the instructions for using the service which seem to suggest entry in an equity recommendation is appropriate at a later date if the stock falls to meet unchanged parameters for entry. This seems reasonable to me, I don't understand why that wouldn't be the case, unless you are correct that Updated does mean disregard all previous instructions and all updates contain all relevant information, which doesn't always seem to be the case.

Any further insight would be appreciated.
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SOL
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Re: Significance of phrasing for stock ranges?

Post by SOL »

Updated refers to the current entry points. If the previous updated stated buy XYZ in the 28 to 30 ranges and the current one states purchase XYZ in the 29 to 31 ranges, the word updated appears there so that individuals know that there is a change regarding the entry points.

As to the second part of your question it is clearly covered in one of the three articles every subscriber is asked to read (in the passcoded section of our site). This clearly states that if a stock trades at any of the suggested entry points you can get into that position. I suggest you read those articles again. Again the word updated simply refers to the current entry points and is a way for the subscriber to quickly scroll through the update to see which GTC orders need to be updated.

If we deployed one lot in CHGG at 89.00 and the stock is now trading at 99, but we have pending orders to deploy another lot at in the 79 to 81 ranges. If it happens to dip to 89.00 then those that did not get in can deploy the 1st lot into the play. Now if any changes were made in the entry points for the second lot in the next issue, the words updated would appear, this would indicate that the entry points for the second lot had changed or we had raised the stop, etc. Please read those articles again, to make sure you understand the difference between a stock pulling back and testing one of the suggested entry points and what Updated (which I just explained again) means.
Simply falling to the original entry point (21-22) is no longer good enough, only buy if it falls to 18-19?
If we had deployed the 1st lot in HUN in the 21-22 ranges then if it dropped to these ranges one could deploy one lot, but we never opened a position in that range, so that range is no longer valid. Only if we have a position in a stock or ETF at a specific price can one consider deploying money into that stock if it pulls back or if it is still trading below the suggested entry points?


I have listed the various entry points below for KEY

1/3rdat 18.94, 1/3rd at 14.95, 1/3rd at 12.80 and one more 1/3 at 8.65.

For example, KEY was trading well below the 1st, 2nd and for some time below the 3rd entry point. So new subscribers could have purchased several lots for as it traded below 12.00 several times until roughly Oct 2020


The same applied to CUB, AIN, and many other positions we have in our portfolio
When the words short term appear under any post; the same conditions listed in the Market update under the short term category apply

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