Trader Mike

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 …

For the last two days I’ve been discussing SNDA with a friend of mine. She asked me what I thought about it yesterday morning and I told her that I didn’t like it because it’s under its 50 and 200-day moving averages. Cramer mentioned it on Mad Money last night and caused today’s big rally. He had this to say about it:

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 …

Mark wants to know what I think of SNDA:

What do you think about SNDA? It appears to be oversold and ready to bounce of of its support. Would this be a good entry point, or does it appear more likely to remain in a downtrend.

I certainly wouldn’t buy this stock right now. It’s under all of its major moving averages, so the trend in all those time frames is down! I might consider it if it closed above the moving average that was appropriate for my trading style. For example, long term players might want to try it on a close above the 200-day moving average. But for shorter term trades I think there are …

I got this message about SNDA from Kevin:

Any thoughts on SNDA–China’s largest internet gaming company on the NASD?

Hmm, I wonder if Kevin’s long SNDA??? I sure wish I was long it too, it has (had?) a beautiful chart. It’s basically done nothing but go up since it listed on the Nasdaq last May. It appears that SNDA has just hit a little bit of trouble. The 50-day moving average tells the story of this stock pretty well. The stock never closed under the 50 until three days ago — and it did so on high volume.

I don’t know where Kevin is long from (or even if he’s long) but if …