Call Me, Maybe

• Posted by Greg Harmon
• on April 7th, 2014

If Carly Rae Jepsen gave you her number I bet you would call before she got out of eyeshot. But what about if she told you there was a trade in Magic jack Vocaltec Communications, $CALL, maybe? Whitney Tilson did tell you that and has been profiting smartly. But after hearing him talk about it for the brazillionth time seems like investors are getting bored. Kind of like with that song. The excitement wears off, and some people just walk away. The chart below shows that since topping at 25 in mid March the stock has pulled back and bounced at the gap level but to a lower higher and is now back at that gap. It is getting closer to the Simple Moving Averages (SMA) so the mean reversion crowd is less antsy, but the Relative Strength Index (RSI) and MACD are both continuing lower. The lone bright spot is that the low in the accumulation/distribution statistic, made a higher low on this pullback. That is a positive. So is $CALL ready to make a come back? Or will it break below that support this time and fill the gap. It does not matter. There is a trade either way!

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