Fundamental research is beginning to reveal the adverse effects of credit creation, particularly since 2008, in the global economy. I'm constantly on the lookout for credit creators to short.
As for Lending Club, price may retrace back to $5 region before heading south as per RSI. Early bird entry is just below $4, but I expect the big selloff below $3.46 where price action has not traded before.
Your thesis was spot on! Can you tell us what your thoughts would be as far where this goes now. The market cap has been compressed significantly. Do you think things are still headed toward $2-1.40 ?
Thanks!
Trader6127
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@MS3IV, yeah I think the technical plan is still valid here. The Fed and other central banks have begun unwinding their asset purchasing progammes, so I would be on the lookout for other higher risk lenders to short. Cheers!
MS3IV
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@agency, are you expecting any certain levels? I wouldn't be surprised for this to bottom out then run back for 500 - 1000% gains
Trader6127
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@MS3IV, level are on the chart. Any long entries would be countertrend innthis context.
Out of your ranges are you expecting any specific point to wind up being low. Are you thinking this will go sub $2 or will it somehow find footing 2-3.50+/-
Thanks!
MS3IV
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@MS3IV, forgot to add or are you convicted that they're going bankrupt and or dilution in the near future?
Thanks!
Trader6127
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@MS3IV, I don't look at fundamentals, really. Only a general idea where to look (end of QE cycle/long since last recession = pressure on high risk lenders) and then focus on the chart. I'm thinking $4 is now resistance, so we are looking for $2.50 and lower.
Thanks!