• Skip to primary navigation
  • Skip to main content
Mullooly Asset Management, Inc

Mullooly Asset Management

Fiduciary Fee-Only Financial Planner | Investment Advisor in Wall, NJ

  • Services
    • Wealth Management
    • Financial Planning
    • Retirement Planning
    • Investment
    • Estate Planning
  • Our Fees
  • About
  • 732-223-9000
  • Schedule A Meeting

Services

  • Wealth Management
  • Financial Planning
  • Retirement Planning
  • Investment
  • Estate Planning

Quick Links

  • About
  • Our Fees
  • Videos
  • Podcasts
  • Blog

Support

  • Contact
  • Client Login
  • Pay Bill Online
  • Form CRS
  • Our Process
Follow us on Facebook
Follow us on Linkedin
Follow us on Twitter
Watch On Youtube

Let’s talk

Listen to the Sell Signal: Are Media Darlings Worth It?

July 24, 2008 by Thomas Mullooly

I’m going to paint a word picture for you.
Suppose you own a stock that gave three successive buy signals last summer — in 2007. The stock ran from $28 per share up to $34 a share. Sounds good so far, right?

But the stock then broke through the support line, was already on a relative strength sell signal, and the sector has been out of favor for a while. Not so hot now, eh?

The stock then treads water in January and February of 2008 around the $20 mark. Out of the blue, a competitor offers to negotiate to buy the company and the stock dances from $21 all the way up to $30. However, $30 happens to be precisely where it meets the overhead resistance line and the stock stalls right at $30.

For nearly 6 months these two companies have had on and off negotiations. Sometimes it looks like a deal will get done, other times it looks like they are the Hatfields and the McCoys.

At the moment it looks like (according to the media), some sort of deal might get done.2703918964 668356013a

But the charts are telling us something completely different.

The stock has now given us a bearish catapult — a triple bottom followed by another double bottom. Many times this indicates the stock may trade even lower than the current share price. Indeed, the stock now sits at yet another double bottom and is close to giving the third sell signal.

2703909964 3600bb73fc

So while the media is hailing Jerry Yang (the CEO of Yahoo!), as a hero, the shareholders are saying otherwise. They are voting with their feet and exiting the stock.

Supply is clearly in control of this story. And whenever there is too much supply, prices must fall.

Don’t ever forget that.

Never miss a post...and we deliver!

newsletter mailman

Get our updates delivered right to your inbox. Sign up today!

Success! Now go and check your email to confirm your subscription.

There was an error submitting your subscription. Please try again.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Filed Under: Asset Management, Stock Market Comments Tagged With: buy and hold, buy signals, sell signal

About Thomas Mullooly

Thomas Mullooly is owner and founder of Mullooly Asset Management, Inc. In 2002 Tom opened Mullooly Asset Management, a fee-only investment advisory firm. As an investment advisor, and not a broker, Tom works strictly for his clients. With the help of point and figure charting, Tom builds a realistic game plan for clients.

1971 State Route 34, Suite 102
Wall Township, NJ 07719

  • 732-223-9000
732-223-9600
  • support@mullooly.net
  • Services
  • About
  • Our Fees
  • Contact
  • Form CRS
  • Videos
  • Podcasts
  • Blog
  • Client Login
  • Pay Bill Online
  • Our Process

The information on this website and blog do not involve the rendering of personalized investment advice. A professional advisor should be consulted before implementing any of the options presented. None of the content contained in this website should be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

© 2022 Mullooly Asset Management Inc. All Rights Reserved.

  • Privacy
  • Disclosures and Legal Disclaimers
  • Privacy
  • Disclosures and Legal Disclaimers

© 2022 Mullooly Asset Management Inc. All Rights Reserved.