A support level is a price that fairly consistently tends to generate a lot of buying activity, thus boosting the price so it’s difficult for the stock price to fall below that level. It’s more applicable to established stocks that have real and clear value, which DJT certainly is not, but to some extent it applies to all stocks. At least, if you’re a believer in technical analysis (eyeballing stock charts to predict future trends).
“Testing” just means it clearly broke through a previous support, and the market is trying to establish a new one, a point where there will be enough buyers to keep the price steady. Since DJT is basically worthless, any established support level may be short-lived.
FTR, technical analysis receives a lot of skepticism and outright disbelief. But decades back, I read a presentation of a paper in the Economist magazine that demonstrated some statistical evidence for one of the claims made by technical analysts. So there’s something there IMO.
Humans are expert pattern readers, to the point where they tend to perceive patterns that don’t exist. So I eschew technical analysis. But this is meme stock - what else do we have? I can’t think of a good analogy for this hocus pocus. I do appreciate wolfpup’s technical analysis on DJT, and I always take it with a pound of salt. If wolfpup applied technical analysis to the S&P 500, he would deserve pushback IMO. Though I can’t claim absolutely and definitively that there’s nothing there. I generally ignore all technical analysis claims in the business press, but this is an exception.
ETA: I see wolfpup is busy replying. I’m curious what he thinks about technical analysis. I understand he used it professionally some years back.
There was some guy whose name I forget who claimed to be the world’s greatest technical analyst. He was able to cite a great track record of stock predictions, and wrote a book about his techniques. And then he seemed to fade into obscurity when the market crashed, and took all his “buy” recommendations down with it.
I suspect that the major (and perhaps only) virtue of technical analysis is that a lot of speculators are doing it and coming to the same conclusions. If there is a widespread belief in putative support and resistance price points, then it becomes a self-fulfilling prophecy.
The obvious problem that TA doesn’t consider fundamentals is answered by its acolytes by claiming that the fundamentals are already baked in to the patterns that they’re analyzing, which may be true to some extent. A slavish dedication to fundamentals can also lead you astray. The only (generally) reliable way to win in the market is to have a diversified portfolio of solid stocks and stay in it for the long haul.
From that standpoint the only use for a worthless stock like DJT is pure speculation, and of course the smart money has always been on the short side. I’d have been shorting it myself but the devil is always in the timing. And I don’t really have a lot of cash to throw around.
No, not at all. I just played the market for a few years when I was young and did have some spare cash to throw around. I was not (and am not) at all expert, but I did have some nice gains from time to time. There was one amusing period when the stern lady who headed up the accounting department at the small company I worked for got really pissed off at me for failing to cash my paycheques, which apparently wreaked havoc with their account balances. I didn’t want to antagonize her further by explaining that it hardly seemed worthwhile, given my income from the stock market! But that was just one brief period. I also managed to lose money, too, of course.
The good news (for fools who invested in DJT) is that at least in today’s trading DJT seems to have stabilized. The bad news is that it’s stabilized at the historically low level of around $12.70.
The interesting thing about the dramatic free-fall this morning is that it involved some very large individual trades. 873,642, 343,115 and several trades in the 200,000 range took place, those alone amounting to over 1.6 million shares that changed hands in the space of about ten minutes after market open. And those were sellers trying to find buyers, driving down the price dramatically. Those clearly were not small investors. And if this involves Trump, which it probably does, in his typical style it will likely be disguised, illegally not reported, or otherwise fraudulently handled.
There have been big spikes in volume in early trading since insider lockup ended on September 19.
The stepladder pricing pattern has also been interesting. Maybe it’s lost 75 cents or a dollar per day. I predict the stock will eventually plateau well above negative a buck fifty.
Hey, this former history teacher’s thought process was something like, “10.66? There’s no way it’ll… wait, no. That was the Norman Conquest. Magna Carta was, uh… 1220? 1210? Fuck it I’ll look it up.”
Just browsing through the price graph I think $12.15 is the lowest closing price since the giant spike on October 22 2023, when DWAC announced its proposed deal to buy Trump media. Next stop is $9.94 at which point its worth less than the initial investment.
As I think I may have posted above its probably not going to go much below $8 as share since they supposedly have that much cash on hand.
Speaking of which, I assume that’s not kept as bundles of $100 bills stashed in a storeroom or Nunes’ basement. What sort of instruments is it likely to be kept in?
From this page its listed as “Other Long-Term Investments” So probably stock of some sort.
Also a quick correction. For some reason I thought I remembered that the Cash on hand worked out to a little less than $8 a share. Looking at it again, its actually calculated at about $1.70/share, so we still have a long way to fall.
