3SOF

This news should present a gap in PPS this morning, followed by a run. Anticipate the major up trend to follow over the next few months.

The moment may soon be upon us.

Positive divergences and a cross in technicals everyone is familiar with.

The RSI, and Stochastics.

The stochastic TA is the lower window -- see the cross right on the cusp now.

This analysis shows the Pro-Go indicator, which reveals the behind the scenes interest of investors. The key focal point here is to spot early positive divergences in the blue line that oppose the movement of the price (the yellow bars) to spot forthcoming breakouts before they happen.

For instance, look at the time period of December 2005.  Notice that the PPS is falling, yet there is a positive divergence of the blue line. Eventually, the game is up and investor interest can no longer be masked, and the price makes a very healthy uptrend.

The same holds true for the time period of late August through early September 2006. The price hits a bottom, retraces some, yet the blue line starts running to the upside. Soon the price moves up and investors get nearly a 120% return in less than two months.  Now look at where we are today. See the positive divergence in the blue line relative to the price? A breakout is imminent, and given all of the other technical set-ups, I think it will be a big one.

The sweetest part of this chart is the green trend line that I have drawn in for you. Notice the blue line divergences relative to the price touching the green trend line and how the price always bounces off of it. Finally, notice the pink line. When both the blue and pink lines cross above the white ~0~ line, there results a serious up-trend. (Evident in late September '06)

As everyone can see, as of the market close on Friday, December 29, 2006, the blue line is ABOVE the white ~0~ line and positively divergent, the pink line is just a hairs breadth below the ~0~ line and ready to cross above, and the price rests exactly on the green trend line at $1.56, my earlier prediction point derived from multiple technical indicators.  It appears to me that we have some powerful technical combinations in play with GNBT, and that they all point to a powerful upside breakout happening in the very near future. This is my genuine and honest opinion.

This chart is a longer timeframe -- two years.

The light blue lines indicate "top of market" when they coincide with the top of the chart. The DARK blue TA line indicates "last chance to exit with money", once it hits the top of the TA chart.

Conversly, the purple TA line indicates "best low buying in oppertunity" when it shows up in the top of the chart.

The YELLOW line (where we are today) indicates "LAST FREEKIN' CHANCE TO GET ANY BEFORE IT EXPLODES NORTH!" when it shows up in the top of the TA chart.

This one is a 60-day linear regression and Standard Deviation study.  You'll need to scroll the chart sideways to see the right edge.. Need I explain what TA like this leads to in a few hours/days? 

The trading of Generex looked precisely as I expected today.   

Consult the following image.

This is a cropped snapshot of the 60-day chart showing some technicals that have been adapted, modified, and tormented by yours truly. In other words, I've been inspired to draft, craft, and author these technicals which are not yet published, and as a result, they might be considered Frankenstein TA for the time being. "But do they work?" You ask. Yes. Yes they do.

Consult the chart and note:



Compare PPS-A and PPS-B.  Note that PPS-A travels through the resistance bands (upper price chart, purple circle) but wants to retrace back toward the top of the bands naturally. Had GENEREX shown some insight and refrained from releasing their PR pre-market the morning or 12-14-06, we might have seen a clean upward market, and the PPS might have moved completely out of this range and upward by now. Unfortunately, with a heavily manipulated stock like GNBT, pre-market gaps really aren't to an investor's advantage unless all the props are set and ready to be triggered into motion, so GENEREX actually hurt their investors with that pre-market PR. Had they waited three hours before releasing that PR, the move would have painted a different picture entirely, and instead of fear being painted into the mindset of the investor (watching the PPS sink after good news), greed might have set itself in motion causing a short squeeze,  and there would have been no gap to fill.. However, that being said, all will be well in the end, as cause and effect are at play here at the end of the year.

Notice that today's trading (PPS-B) through the resistance bands isn't quite as extreme or outside the bands themselves as it was at PPS-A This is very bullish especially when correlated with the other TA.

In the upper TA window you will see a circle labeled CROSS # 1.  Cross #1 is a pre-signal, in other words, it signals that the bottom is coming soon and that one should stay on their toes.  The lower TA window shows CROSS # 2. When there is a converging cross in that window, and the PPS is enveloped or below the lower resistance band, and the yellow oscillators are high and outside the TA window's purple MA bands, then the stock is a BUY. 

Now, why did the PPS fall after that pre-market news announcement you ask?  Simple. The PPS awoke (opened) OUTSIDE the technical bounds, and traders (like you) faded the gap. It's cause and effect.. The cause was the poor timing on the PR, the effect was a fade, which fostered the secondary effect of market fear, dumping, more manipulation and yet more panic EOY tax loss selling. The company erroneously empowered the naked short.

With all that said, we look at the here and now, and we see that cause and effect has resulted in an EOY present being placed at the very feet of any retail short or small investor AWAKE enough to realize it. Look at the lower TA window in my chart... see the yellow line almost touching the very top of the chart correlated to PPS-B? The yellow line is an Inverse Transform Oscillator that clocks on Moving Averages if you will, and rarely does it get so high in a chart as this, but when it does, one gets break outs like that 120% move XSNX made not so long ago, or like the move SIGA made a few trading days ago. As soon as that yellow line moves sideways and touches the purple MA envelope, the stock will blow up. The end result you ask?  A robust, alarming, and explosive move to the upside. I'll let you look at the chart and see if you can't guess when that will happen.

I hope this helps and isn't excessively confusing! As always, these are simply the opinions of a simple man on a simple budget. Please exercise your OWN judgment and do your own DD and analysis.

Let's try again with that image...

Generex Biotechnology Corporation engages in the research, development, and commercialization of drug delivery systems and technologies for metabolic and immunological diseases. It develops a proprietary platform technology for the delivery of drugs into the human body through the oral cavity. The company's primary product, Oral-lyn is an insulin spray formulation used for the treatment of Type-1 and Type-2 diabetes. It also develops Glucose RapidSpray that delivers glucose through a pump spray to the mouth, as well as morphine and fentanyl by oral formulation and injection for the treatment of moderate to severe breakthrough and postoperative pain. In addition, the company develops technology for the oral administration of molecule drugs, including proteins, peptides, monoclonal antibodies, hormones, and vaccines. It also engages in the research and development of technologies and immunomedicines for the treatment of malignant, infectious, autoimmune, and allergic diseases.

An understatement is their development toward creating synthetic vaccines; and their insulin spray formulations DO NOT require inhalation into the lungs, they are absorbed in the lining of the mouth.

Generix is at a technical turning point in my opinion, and they have released news on Friday stating they have filed for a $150 mln stock shelf offering. (not stock dilution) The stock shelf offering firewalls hostile take over bids in my opinion.  I expect volatility on Tuesday for all the usual reasons, share holder misunderstandings of shelf offerings, end of year tax loss selling, and the prerequisite greed and fear elements. Coupled with 49 million in cash, and debt of only 2 million, I see the company completing all phases of their product trials, and making investors at this juncture quite happy.  Please do your DD and tell me something I don't know if you DO. 

See the chart -- I may post other T/A charts later.