After seeing the disastrous ‘earnings’ (losses) from Shanda Interactive (SNDA for the ‘home gamers’). I went back to look at my January 10th read of the chart. I’m glad my friend took my advice to stay out b/c just as I feared, it’s got stopped cold by its 50-day moving average — the very next day after my post. But I’d forgotten that Cramer was partly responsible for the pop it had on the 10th. On January 9th he said:

WOW, MY EMAIL HAS BEEN VERY CRITICAL. I RECOMMENDED THIS DOWN AND OUT CHINESE PLAY AT 16.00. I DIDNT’ LIKE IT AT 40; I DIDN’T LIKE IT AT 30; AT 20, YOU CAN HAVE ALL YOU WANT. I WAIT UNTIL IT GOES TO 16, AND BECAUSE IT HASN’T MOVED YET, PEOPLE ARE MAD AT ME. HAVE A LITTLE FAITH! THIS STOCK’S DONE GOING DOWN. I SAY IT SEES 20.00 BEFORE IT SEES 15.00. DO A ‘MON-BACK FOR HEAVEN’S SAKES.

I guess Mr. “do your homework” either did his wrong or maybe the excitement of the lightning round made him forget all that helpful fundamental analysis he supposedly did on SNDA. 20 before 15? The trend would tell you that wasn’t a wise bet to make. This is a great example of the chart telling you everything you needed to know — although the fundamental story is pretty damn bad too. The company switches from a paid to a for-free, ad-based model and the earnings swing from a 38 cent/share profit to a net loss of 94 cents a share. How do you miss that in your fuzzy fundie analysis?

I wonder if he’ll be wearing ‘SNDA’ on his forehead tonight or if he’ll throw good money after bad and double down. Me… I still wouldn’t tough it.