Mr Cooper Group Inc (COOP)

[Lawson Digest]

From a technical standpoint, RSI was way too high and I had a theory that the MACD patterns were about to repeat. From the looks of it, I'm correct: the MACD is about to intercept and indicate a trend reversal, confirmed by the candlestick patterns that piggyback off of a declining RSI.

From a value standpoint, *nothing* about this stock has changed except the frequency and intensity of rampant speculation.

The major problem I see in this (capped out) bullish trend was that people saw high volumes and thought that meant there would be big players holding onto WMIH shares for dear life. That might be the case, sure, but the recent bull run has been entirely fueled by speculation.

Back to technical. We can see a huge run up to around 2.70 and then weeks of riding waves around that price. That seemed to be the comfortable PPS that everyone likes; sub $3. When it broke $3, enough people were excited that one of them even took out a home equity loan to load up shares (oops!).

Speculation and panic buying pushed the share price way too high, and now the PPS is going back down to a more comfortable level.