Well, I'll be the first to admit it took way longer than I expected, but Mediabistro Inc. (NASDAQ:MBIS) has finally unleashed the strength I saw brewing up four months ago. Now get out. Seriously. Go ahead and take your profits on MBIS and walk away while you still can.
Surprised to hear me say that? I understand. I'm not joking though. But, it's worth adding that my bearish call on MBIS is purely a short-term, technical-based, defensive one only intended to protect what we've gained so far. After a pullback and subsequent hints of a renewed (and better-paced recovery), I'll be encouraging everyone to start wading back into a Mediabistro position again.
I suppose I should go back to the beginning and explain what I saw unfurling with Mediabistro Inc. back on July 30th. There were two things going on. One of them was the fact that after more than a year of lower lows and lower highs, we had finally seen a few weeks' worth of higher highs and higher lows... and they were steady, bordering on freakishly smooth. The other bullish clue popping up at the time was the way MBIS was working on crossing above the 200-day moving average line, which would be a huge buy signal. See the July 30th write-up to see what things looked like then.
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Well, it took three months and a couple of different tries, but it was worth the wait. MBIS continued to give us higher highs and higher lows, finally crossing above the 200-day moving average line - as well as all the other key moving average lines - last month. In fact, Mediabistro Inc. shares found support at all of those lines once they were hurdled, which led to the eventual slingshot-like surge we're seeing right now. Take a look.
Red hot for the last few days? Yes, it has been, which is exactly what we've been counting on for months. But, this is most definitely a situation where we don't want to get greedy... especially seeing today's intraday action. Though MBIS hit a high of $3.35 today versus yesterday's high of $3.00, the stock's gotten uncomfortably (for current owners) comfortable at levels under $3.00... well under $3.00, to be precise. After the high-volume buying we saw on Monday and Tuesday followed by today's lethargic effort and lethargic volume, this is looking like the end of the buying interest and the transition into a profit-taking and/or the too-frothy-to-buy situation.
Again, given the bigger-picture tidal shift we've seen over the course of the past few weeks, I'd be perfectly willing to step into Mediabistro Inc. once some of this froth is burned off. But, the potential 40% pullback we're facing from here isn't something I'm interested in simply "riding out". Timing is everything.
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