Daytrading with Consensus

[Ares]

If MAMA tanks,

Hourly support areas:

4.90  = 50ma
4.36  = 200ma
4.20 = congestion

[Ares]

Looks like MAMA is tanking - a gap to crap?

[Ares]

Today, I'm following up on MAMA.
Looking at 5.60 to be broken by lots of green (Blocks of green is what I'm really looking for.)

OR

If it tanks, I'm waiting to see a steep decline(angle of attack) towards my buy zone with panic selling volume outside the B- at the end of the move  on the minute chart.

50 ma= 5.02 (yesterday was 4.90)

200ma = 4.43 (yesterday was 4.36)

congestion = 4.20

[Ares]

Watching LVLT.
Looking at 6.48 as resistance to be broken.

[Ares]

I might be dipping myself in hot water here but I'm in BRCD at:9.50

Reason:
9.48 support on weekly chart backed by 8ma support.
Minute chart had been downtrending.
Big selling volume outside B-.
It was followed by a recovery rally that exceeded the BB.
2nd dip was inside B- with lower volume.

[Ares]

BRCD's too slow for me. Out BRCD at 9.55
I went past my cut off of 8am
In BRCD:9.50
Out BRCD:9.55
Profit:0.05
Happy trading   

[Ares]

MAMA bounced at the 50ma of the hourly chart at 5.06 (Earlier the 50ma was at 5.02)
I may have to buy it on strength now since I missed the bounce.
Either it breaks 5.23 (previous hour's high)
or if it test support again.

Current Hourly support areas:

50ma = 5.07
200ma = 4.47
Congestion = 4.20

My suspected AX is currently sitting at 5.05 Bid and 5.25 Ask

[Ares]

Posts regarding level 2.

Yes,  but did you see how high the bid was stacked up at 3.76?  Somebody doesn't want to see ALTI bleow 3.76.  Find out who it is if you have level II. 

Liquid Stick,

No, I don't use Level II.  We got some buyers in the final two minutes.  Closed at 3.83.

I'm watching @ level 2 riight now.... looks like TGB will close @ HOD ... WOW is that a big blocks right there 1 minute before the close

And it did ...nice, nice

I like ameritrade beacuse they offer ppl with balances of 5000$+ or 30 trades per quarter free Level 2 quotes and no inactivity fees and you get a lot of other free stuff. Commissions are now down to 9.99$ so its not bad.

nope i've never read any anywhere, i just teach myself i suppose for level 2
for example you can see the gap on the bid side between .0027 and .002
i doubt we will go below .0027 because of this

netfishmademerich,

I do hope you are right.  The technicals do still seem to be in line for TIII to go up, but it was a bit concerning today to go down while most tech stocks rallied so strongly.  Perhaps its still the minor insider selling from yesterday weighing the stock down?  I am looking forward to David's analysis since its getting close to his buy in price.


On a separate note, I havent traded in a stock with this low volume before, I am curious about the way it moves on Level 2.  The current price might be 2.87 with a bid and ask of say 2.85 and 2.89, and then the next trade will be 2.93.  I dont really understand why anyone would want to trade it past the lowest price they can get? 

I tried selling from 1.35 all the way down to .88....Could never get my market or limit order to execute.  So, im still in!  

How do you get ur orders to execute?

Here's what I did....was looking at level 2 right from open....saw it kept going up without a break, with no real downticks...thought I'll pull the trigger at $1.00, but the bids were lining up and ask was thinning...and after it took out $1.00, I thought it'll get weaker, so had my finger on the trigger, but it was still going strong...right about when it went to $1.13 or so, I put in a limit sell order at $1.07....the thing went going higher, and finally whern the bid was at $1.18 and ask was at $1.19, it took my sell order, probably 1 minute after I entered it.

The trick is:

1.) always sell when you still see buying power and upticks instead of when it is going down.

2.) set your limit order several steps below the market bid price only then do u have a chance of getting filled , especially during rapid price movements.

I set my sell order when the stock was still experiencing buying power...not when it turned the tide.

I've experienced with several pennies, that it's useless to chase when buying power is great, and likewise, useless to sell when everyone has theoir orders to sell.

kinda like, sell to strenght and buy into weakness.

good luck! hope you get out with a profit. 

Wheezie - I've been with Ameritrade in one form or the other since I started. Thus I can't really compare it to other brokers other than to say I've been happy with them for the most part.  I use Ameritrade Izone which is $3 per trade. To get Izone you have to pay a $50 a year annual fee. Pretty much a no-brainer if you plan to make a couple trades a month (the standard (non-Izone) Ameritrade is $5 per trade).  As to ASR's comment that Ameritrade doesn't give the best price, I think he's talking about market orders. I usually use limit orders unless the stock is super-liquid with a 1 penny spread (i.e. SIRI). If I want to buy a stock immediately, I look at it on Level 2 and place my limit order at the ask. And if I want out of a stock immediately I look at L2 and set my limit at the bid. Works 99% of the time.  Another nice thing with Ameritrade is you can buy and sell OTC's or pink sheets (ugh) with no restrictions. You can buy 1 share or 100 million shares and they charge you a flat $3.

Another broker I've looked at but as of yet have not test-driven is Interactive Brokers. Very good word of mouth with IB. One thing I know IB offers that Ameritrade does not offer are bracket orders. That's where you can set a limit order that says "Sell XYZ if it gets to $9.50 or sell if it falls below $8. That way you can set your exit price above and below the current price. With Ameritrade and most other brokers you have to pick one or the other.

I wouldn't consider Scottrade if I were looking for a broker. I'd go Ameritrade or Interactive Brokers.

watching level 2 and raw trade data on this stock indicates to me there are a lot of shares being traded on this stock that aren't obvious to see, my best guess is this was taken down to allow a large buyer to take a large position, us small retail investors will have to wait for this to finish.......anyone looking at HOM   wow

good higherstocks! level 2 looks good

Hi cmshop,

no, i did not buy...just too expensive for me...although i was completerly mesmerized by the level 2 action going on...wild!

Good eye though on finding it and posting it before the action started!

Congratulations on a very exciting and energetic pick..I hope u were able to pick some up  though.

Applause!

have a great weekend...dying to see what happens on Monday.

thanks very much,

julia

http://finance.yahoo.com/q/bc?s=NGPS&t=1d

I watched the close on Level 2 Thursday.
Large buying blocks.

RushNet Inc. Gains New Brands With Brewery Purchase
Tuesday April 11, 2:16 pm ET 
Major Increase in Licensed Product Base Realized


BLUE ISLAND, Ill.--(BUSINESS WIRE)--April 11, 2006--RushNet, Inc. (Pink Sheets:RSHN - News) proudly announces that RushNet's President, Robert J. Corr, and investment group Lynch Partnership One ("LPO"), led by well-known entrepreneur Michael Lynch, have agreed to terms with the owners of a regional Midwest brewery, and will proceed with the private acquisition of the brewery in order to promote the future expansion of RushNet, Inc. throughout the beverage industry.
ADVERTISEMENT


With years of experience in the brewing industry, RushNet President Robert Corr understands the potential for future expansion and enhanced profitability through the acquisition. He stated that, "Upon completion of this purchase by the two parties, RushNet, Inc. will be appointed as the exclusive, Licensed marketing agent for the brewery's existing branded products along with new beverage items to come. The brewery alliance, by providing RushNet with a constant stream of innovative quality beverages, can transform our company into a full-fledged beverage marketing firm." Sales at the brewery were up 40% in the first quarter of 2006 compared to the same period last year.

The brewery, one of America's oldest, has been family owned and operated for over 100 years and brews and produces its own high-quality branded line of alcoholic and malt beverages, and gourmet sodas. For fifteen years it has packed Ginseng Rush and other Rush Beverage Co. products, and the brewery also does private label work for other companies. Both Michael Lynch of LPO and Robert Corr of RushNet Inc. intend to compound the value of the traditional brewery. Mr. Corr explained that "The new owners will introduce a complete line of innovative all-natural beverages, such as fresh-brewed flavored teas and sodas, and lightly carbonated 100% juice drinks. We will install a modern tunnel pasteurization unit at the brewery to ensure integrity of the all-natural ingredients without the use of preservatives.

The latter also gives me the chance to reintroduce a Ginseng Beer like I made in the 90's and distribute it worldwide with my new partner Michael Lynch. Michael has special affection for the Rathskeller and Rock Hard Red products the brewery makes."

RushNet, Inc., Licensee of the highest quality Rush Ginseng Sodas and the new e-water(TM), have recently expanded distribution into Southern California, Midwest and East Coast supermarkets and convenience stores, making the products more easily available to meet the growing demand being created by the national consumer PR campaign and investor requests.

The correct link for Real-Time Pink Sheets Inside and Level 2 Quote Montage for RSHN (RushNet,Inc.) is: http://www.pinksheets.com/quote/quote.jsp?symbol=rshn
RushNet Inc. is the licensed marketing agent for Rush Beverage Company products including Ginseng Rush®, Ginseng Rush XXX(TM) and Rush Ginseng Cola(TM). RushNet, Inc. is the brand owner of e-water(TM).

Disclaimer: The Company relies upon Safe Harbor Laws of 1933, 1934 and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the company include, but are not limited to, government regulation; managing and maintaining growth; the effect of adverse publicity; litigation; competition; and other factors which may be identified from time to time in the company's public announcements.



Contact:
Christie Communications
Ms. Cristina Romeo, 805-565-4122
[email protected]

--------------------------------------------------------------------------------
Source: RushNet, Inc.

Still no information on Rangy delisting. Can only get Level 2 quotes or end of day. Closed at $1.60 tuesday and $1.35 wednesday. Does not look good but really hard to tell.

Good trading all!

uc

ahh just ameriturd is my online client. i have a few other brokers i have to phone into that charge 3% each way but allow me to see true level 2 spread. Ameritrade should be ok for pennies... i've never heard anything good from my friends with scottrade and pennies, they all have switched.
you can also look at teranova system... although i'm not sure how good they are for OTC or if they allow it at all, but i know they are great for nasdaq and bigger cap type plays. I'll be opening an account with terra soon.

http://www.ameritrade.com/index1.html
http://www.terranovaonline.com/

Oh yes. Small market cap and people holding is doing some great things to this one. This closed WAY to strong to not have at least one more run in it. Also the level 2 on this stock today would have removed any doubts if I ever had any.

Inseq on level 2 after hours at 16.02     , 2 large buys afther hours , 1 at 9.5mill and 1 at 4.7mill, price 0.0017$, somethings up, insider buys ,,,

DKGR, promises, promises, promises.... the stock couldn't even break .013 today and if you're watching level 2 you can clearly see yet again this stock is not going to crack the .015 resistance that it continues to pop through.

It really is a shame, so much hype and promise around this stock.  Good luck to eveyone, I sure hope your right FurrySound, but before new 52 week highs this needs to get up and over .015.  Another disappointing day for DKGR, unless of course you flipped it from .008 to .012!!!  Muhahaha.

That dump and then the level 2 window almost halted my computer. Couldn't find any bad news. Hope it was just good ol' profit-taking...

Ram

250,000 BUY ORDER AT $0.45
ON LEVEL 2 NOW

julia,

I was ready to hit the button when it got to 0.0014, was waiting to see how good the support was, and see if it would trend back up...level 2 showed me solid support once again at the 0.0014 - 0.0015 level (which seemed like it was a resistance for a quite some time).

The good thing is IDVL seems to have consolidated/is consolidating and digesting the gains from yesterday. Normally,if this was anything like a P&D, u'd have seen much lower volumes today and a possible break of support at 0.014.

anyways, i'm holding and waiting fora break 0.0025 (which looks mighty close on level 2 !!!)

alos if u remember, we broke of a short term ascending triangle and medium term cup pattern yesterday, so that gives me more faith in the stock....not a fale breakout in my opinion.

good luck!

Watch the close.  Alot of Green on Level 2.

But his point is a good one, I always find it difficult to time my trades properly, and very often end up buying higher than I want to

I have been playing with limit orders quite a bit, but without a technical base to attempt to align my trading price with, I often find I miss the buy and end up chasing the stock.  Never nice when it is moving fast.  Conversely, if a stock is moving, I very often see that and by the time I get in, it reverses direction and pulls back (as just happened right now with CMGI) leaving me looking at red from the outset - also not very nice.  I suppose the important thing is not to get emotional or annoyed about it, pick your ideal position and then accept that this is a position trade - if you made the plan right then it should gain much more than its intraday movement.  However, any  advice at picking intraday buying targets would be much appreciated   I guess it also helps a lot to have level 2...

Wow, for once I got lucky on these offerings, I sold yesterday at 4.14 just because I had a bad feeling about the stock based on having traded it actively since October (and I was watching a particularly fast slide on Level 2).  Yesterday I was kicking myself for not taking profits at 4.8...

I have traded this stock more than any other stock so I acted on a hunch.  I guess my thought now will be where to try to buy it back, if at all, maybe it can go up. 

I will say this though, this sucks for NVAX to do this again so soon.  Sorry to all who got caught, we have all been there more times than we care to admit.

unfortunately with my stupidity and some bad luck and poor choices i have managed to loose 35k on this stock, last week i was up 38k when the stock was trading at 2.80, i was going to sell but decided not too, i went out to shop came back 10 mins later and it had dropped to the 2.20 area, in my wisdom i bought another 60,000 at 2.25, the money came from my broker allowing me (T3) 3 days to settle, the stock rebounded to the 2.50 area but i still didn't sell, another stupid move, then the market crashed when i was out shopping, I have now had to cover the borrowed money as the 3 days where up, my broker is being unforgiving and is forcing me to sell some 80,000 shares at to cover the 151k i owe them at an average price of 1.84, i shifted most of them yesterday as the stock moved down and down, I have another 40k to sell today................total loss approx 35k from being up 38k a week ago a swing of almost 90,000 dollars


yes this is a nightmare and has caused me great pain, I have nobody to blame but myself.

you can all imagine i am devestated right now, how can anyone be so stupid.


my only hope is that the stock will go up slightly today allowing me a litte loose change, but when you put so many shares up for sale it has the effect of driving the price down, the MM's when not helping either, every time I placed an order they dropped the price down below it with a couple of hundred shares, I keep hoping I'm going to waken up from this nightmare.

I screwed up

just thought i'd share


PS I wouldn't have been worried if it had been my own money, I'd have just held and waited for the rebound, but my broker wanted their money back after 3 days

so if anyone would like to drive the price up a little today, it would be very welcome


PS PS, I also think the AMEX traders are crooks lining their own pockets, i believe they somehow new my predicament and played me, i placed orders yesterday at 2.03 when the level 2 bid and ask was 2.04 and 2.05, my 2.03 never got filled........go figure


sorry for the long post but i just needed the share my stupidity with the world.

1.2 Million Buy Order Level 2 went through.

Someone thinks it is a buy.  

   hey guys,  I have been looking a level 2 all day and it almost seems that the stock moves faster than the computer can keep up. so unpredicatable. it is definitely a roller coaster ride from hell. you really can't tell what the direction is going to be.

Live life,  what is your take. I would think that the last hour will be what the big guys think it will do tomorrow. i am glued to the screen but to try and beat the market on this one is next to impossible. I would think that whatever comes out tomorrow in the press conference is already factored in. I hope we see one last day of going up if you are following the trend of the last couple of weeks of 3 days up then 3 down and now we are on the second day of up..will see...good luck to all

patriomp

so, been sitting here watching Level 2 again, (because it's just so damn much fun) and I'm watching the buys and sells, and comparing them.  ironically, there will be a buy of 57k shares at .0158 and then an immediate sell of 57k @ .0157.  man, if anyone doesn't think this thing is being manipulated, you're crazy.  it's been constantly doing this now for about an 1.5 hours.  wish they would just let it run and let everyone be happy 

Bizarre trading on Level 2 to say the least.  

Can you explain what happened?

OK David - your secret is safe with me... I'll check out the link. Thanks for sending it!

OK ... I CAN'T HACK IT ANYMORE!! Instead of ignoring the shiny bright object stock of the day ... today that was CSUR.  Yesterday is was CNLG ... the day before that it was PNTR ... and of course there was ZVUE. Can someone PLEASE explain how you trade these quick running stocks? It closed yesterday at $3.34 ... there has never been any volume ... it opened up 14% @ $3.80 ... no news on my screen...that was the low tick on the day and it just ran from there. SO my questions are ... what is the setup... do you know about these kinds of stocks before they move by doing some kind of obscure stock ... twisted type of research?? What flagged you that 14% would turn into 300+%? And when after just a couple minutes it had a 100-200% increase ... how did you know it would go higher? How do you know when to get in and get out? When you place an order do you include a stop ... so it's up or out? I keep thinking that if I buy it will turn right around and go back down. What do you look at??!! How do you do this?!! Please help ...

**Awesome help that I got from KSLIFKA on shiny bright object stock spotting and catching (applaud):**
I watch the pre-market most active list.  Most of these stocks will be low float stocks and ones that have been beaten down.  I look to make sure that it is at least above the 50dma before I buy.  Better yet to have the 3 magic lines below. Watch on Level 2 to see the bid and ask race widly early.  Because of its low float, CSLR this morning had a .50 spread between the bid and ask and it was going nuts.  I try to find a support level on the daily chart to enter. Eventually the volume kicks in and the bid and ask get closer. Hope this helps...even though it's not very technical.  Just takes experience seeing it happen.

PROJECT UPDATES:
QQQQ Strategy:
RickJust - I've added CCI w/volume & pivot points with support and resistance to a 5min chart that has all my other criteria... I still need to figure out what CCI is telling me. J Thanks for the suggestions! Now if I just knew what all these lines are telling me!!! hahahahaha

When the stock market is flat on the day ... so is my QQQQ strategy. If the goal is to take at least a dime, it could have been done today, but I didn't feel like there was a good market direction signal in the first half hour. So, I guess to the criteria, I need to add that Becky Quick needs to scream 'IT'S BURNING DOWN!!" ... OR "THIS MARKET'S GOING TO THE MOON!!" Some sort of pre-market pump would be helpful. hahahHAHAHAHA
     The options I watched:
     Jan07 43 call – range from $1.50 to $1.80
     Jan07 45 put – range from $1.60 to $2.00

Strange Skew Stocks:
NFLD, ONXX & AGIX ... all seem to be falling, but the IVs are still high. My NFLD spread is back in the profit zone ... but with the swings it keeps making, I'm not sure it will be able to stay between 10 & 15 by January expiration... or right around 12.50 by December expiration...

The new stocks with strange skews that came out on my screen ... Kind of a long list. I'll narrow down the list and post only the pertinent movers in the option folder:
TELK
NLY
TE
MAS
MLS
OVTI
DG
VCI
SKS
PLAB
DG ... this one has rumors flying
LPX
C

-Samantha

wow...what a day for this one...close at $1.025 with high of day being $1.03 (the $1.10 you see was a fake high by MM's...)

i'll post the chart later today. i'm all smiles this weekend. 

Here are the charts I promised...albiet a bit late.

Weekly chart:

The 1 yr. weeky chart shows a solid breakout from previous high of $0.87 albeith on lower volume than previous week. The weeky chart shows RSI just entering the 70 + levels...like many high flying stocks that have shown us in the past, a stocks RSI could be in the 70 + levels but pps could continue to rise...we'll just have to look at other indicators in conjunction with the RSI.

The stochastics on weeky chart continue to shown bullish signs...I would best call this "HOLD" stage....if you are already in.

Daily chart:

Looking at the daily chart...first up, the high recorded on Friday at $1.10 was a fake one...the actual high being $1.03, I saw the MM's on level 2 processed on head-fake trade at $1.10 (and another one at $1.05), not sure why, but it happens often on penny stocks. There is a possibility that this head-fake false high has meesed up a few indicators on the chart.

The RSI shows excellent signs of continued bullishness...looking at the previous run from $0.25 to $0.75, the RSI stayed in the 70+ range for a quite a while until it peaked at 90, and fell back one day, and RSI regained strenght tht we still see today....IMO, there is some more room for the RSI to run from current levels of 84 to around 90 or so...may be a trifle higher....what does that mean for the prices....may be a couple more days of running before another pullback. I wouldnt be surprised to see a quick run up on morning of monday before cosolidating and pulling back for a breather before the next leg up resumes.

The stochastics also shows possibilties of turning down and the price consolidating before resuming uptrend.

The ultimate oscillators also shows a negative divergence, meaning, it's trending down while the pps is going up....good indication that price might take a breather in the next few days...

Conclusion:

But one thing is certain...I think we are in the middle of a longer bull run for this stock..kinda like the XSNX and the PTSC's....fundamentally speaking, bird flu negativity will not affect this stock much even if the rest of the sector takes a hit, because, from this week's news, the continuous stream of revenue for this company is from it's surveilance/security divisions.

Simply put, this stock will not be affected much by a downturn in the bird flu sector, but will stand to benefit nicely in case of buzz in the bird flu sector...WHY?  because the actual money as of today is being made in it's security/surveillance division...and it's bird flu containment system is just taking off with interest from several S.E Asian countries...  

Can someone PLEASE explain how you trade these quick running stocks? It closed yesterday at $3.34 ... opened up 14% @ $3.80 ... no news on my screen...that was the low tick on the day and it just ran from there. SO my questions are ... did you know about these kinds of stocks before? What flagged you that 14% would turn into 300+%. How do you know when to get in and get out. I keep thinking that if I buy it will turn right around and go back down. What do you look at???!!!!! How do you do this?!!!!
-Samantha

Samantha,

That's the million dollar question

I've had luck catching these early but it is very risky.  I watch the pre-market most active list.  Most of these stocks will be low float stocks and ones that have been beaten down.  I look to make sure that it is at least above the 50dma before I buy.  Better yet to have the 3 magic lines below.

Watch on Level 2 to see the bid and ask race widly early.  Because of its low float, CSLR this morning had a .50 spread between the bid and ask and it was going nuts.  I try to get find a support level on the daily chart to enter.

Eventually the volume kicks in and the bid and ask get closer.

Hope this helps...even though it's not very technical.  Just takesexperience seeing it happen.

I'm in 1.17.   Thanks Bro!!!!  Looks real good.  by the intraday action, specificly the level 2,  heavy ask---tells me mms are trying not to let this thing fly.  I'm contrarian though, I know they are short if they are doing this.  I don't think we're going to see your entry point.  As they try to pound it down in price, you'll see the bid increase in size.  I think it's gonna fly.  87 million float

[Ares]

Question: Institutions have enjoyed the benefit of wide spreads by buying at the bid and selling at the offer. Can you do this too? Can a retail Investor buy at the bid and sell at the offer too?

yes  3 (100%)
no  0 (0%)

Total Voters: 3

It is true, regular retail investors can buy at the bid and sell at the offer.
It is normally through ECN's that we can do this.
Direct access brokers offer this service.
People could also buy and sell in the premarket and postmarket but normally, liquidity is way less than when the market is open.

[Ares]

Just finished learning from the ALTI thread.

At first I thought that Melf Elf was being serious about Lucas Scott being the Ax.
Later it turned out that Lucas Scott referred to himself as the Ox.
It's nice to see how Melf Elf Mediated between Liquid Stick and Vic666.
I like Terliso's 3 Magic lines.
I just wonder when he pulls the "trigger" to buy (60,15,5,1 minute chart?)

[Ares]

Just finished reading, copying, and pasting posts from other members.

I finally found the post I was looking for.
It was a post from shipman.

I'm in 1.17.   Thanks Bro!!!!  Looks real good.  by the intraday action, specificly the level 2,  heavy ask---tells me mms are trying not to let this thing fly.  I'm contrarian though, I know they are short if they are doing this.  I don't think we're going to see your entry point.  As they try to pound it down in price, you'll see the bid increase in size.  I think it's gonna fly.  87 million float

He looks for a heavy ask on level 2 - exactly what I look for.

However, I combine that set up with other indicators.
These other indicators that I look for is a combination of the posts that I copied on this thread.
A combination of technical Analysis (moving averages,RSI,MACD,Stochastics,candle formations,etc.), Level 2 Activity,News and fundamentals being a bonus.

My challenge until now though is:

The discipline to follow my trading plan - but getting better at it ( I think ).

[Ares]

Posts regarding Market Makers.

How MM works--coped from other DD sight
Market Maker Speaks Out: Ways of a Market Maker
I was an OTC MM for about 10 years ending in the late 80's. Since then I have been strictly an investor. Since I have not been that up to date in MM rules I will only make statements that I feel fairly confident are still accurate regarding these activities. By and large most MM don't have a clue nor do they care to learn, about the fundamentals of the stocks they trade.

They just try to make orderly markets. When dealing with BB stocks it is very easy for a MM to get trapped into being short in dealing in a fast moving market. Reason being; most of the MM's in this stock are what are called "wholesalers" this means they don't have retail brokers "working" the stocks.

So they have to rely on what's known as the "call" from larger retail houses. If a "Big" retail firm like an E-trade calls up a market maker to purchase say 5,000 shares of a stock, they expect to get an "execution" from that market maker. If he turns them down, or only gives a partial then the "Big" firm will go to another MM.

If this second MM "fills the order" then that "Big" firm has a moral obligation to continue to give future "business" in that stock to that MM who performed (his life blood). This will go on until he "fails" to perform and so on.

Contrary to popular opinion the "Big" firms Do NOT neccessarily go to the "Low Offer" to fill a buy order (Or high bid for a sell). They "Go" to who they think will perform to fill the order and expect that MM to "match" the "low offer" in the case of a buy (bid in the case of a sell). Even though this MM might in fact be the "high bid" and not really want to sell any more.

As a wholesaler he must perform or he will get a reputation as a "non-performer" with the "Big" houses and will cease getting "calls" which means he will soon go out of business. I mentioned above that this activity is very significant to BB stocks. I say this because most of the trades in these BB stocks are "unsolicited" and are done through discount houses.

With the above groundwork laid, let me try to explain how market makers get short even if they like the Company; Lets say that a stock (shell) has been lying quietly at $.25 bid $.50 offered. A limit order comes into one of the MM's to Buy at $.50 for a thousand shares. Prior to this trade that MM may be "flat" (neither long or short any shares). He fills the order and is now short 1,000 shares. He may raise his bid hoping to find a seller to "flatten" out his position. But before he realizes it a wave of buyers have come in and cleared out all the $.50 offers. Now the stock is $.50 bid .75 offered. Here comes that "Big" firm he just sold the 1,000 shares to at .50 with another bid for 1000 at .75. He makes this print. Now he is short 2,000 at an average of .625. The market keeps moving and now its .75 bid 1.00 offered. Now he has to make a decision.

Just like investors, MM Hate to take a loss. So 9 times out of 10 he will now sell 2000 at 1.00 making him short 4000 but with an average .81. At this time he would love to see a seller at .75 so he can cover his short and make a few bucks.

But instead the market keeps moving up. Now it is 1.00 to 1.25 and here comes the buyer again at 1.25. He doesn't want to lose the call so now he needs to sell 4,000 at 1.25 to keep his break even point above the bid. Now he is short 8,000. Market moves up to 1.25 bid 1.50 offer here comes the buyer now he feels he must sell 8000 here because "stocks don't go up forever".

Now he is short 16,000. And so on and so on. If the stock keeps moving up, before he realizes it he could be short 50k or 100k shares (depending how big his bank is). _________________________

Finally the market closes for the day and on paper he may look all right in that his "break even" price may be around the closing price. But now he has to figure out how to entice sellers so he can cover this short. It is important to note that if this happened to one MM it has probably happened to most all of them.

Some ways MM's entice sellers; Run the stock up with a "tight spread" in a fast market, then "open" up the spread to slow down the buying interest. After it has "cooled off" for a little while lower the offer below the last trade right after a small piece trades on the offer then tighten the spread so that the sellers feel they can take a "quick profit" by "hitting the bid" on the tight spread.

Once the selling starts the MM's will walk it down quickly by only making small prints on the way down with the tight spread. Another way is by running the stock up in the morning, averaging up their short then use the above technique to walk it down in the afternoon.

Hopefully after doing this for several days, it will demoralize the buyers. The volume will dry up and the sellers will materialize thinking that the game is over.

Contrary to popular opinion, MM usually Do Not Cover in Fast moving markets either Up or Down if they are short. They Short More. They usually try to cover after the frenzy is out of the market. There are many other techniques they use but the above are the most popular.

This technique works about 9 times out of 10 particularly in a BB market. However that is because 9 out of 10 BB stocks are BS. Remember what I said above. Most MM's don't have a clue as to the value of a Company until they get trapped. If the Company has solid fundementals and a bright future. Then the stock will do very well. And the activity that caused the situation will prove to even help the future stock activity because it created an audience."

[Ares]

Posts regarding Block Trades.

they covered half of rimm at 81.1... still approx 1k short.

dvw ain't looking bad either.

or lu

or insm bought at 2.15

or miva (some nice block trades going through)

g

[Ares]

Posts regarding headfakes.

Hey kslifka....oh yes...I did notice this g-spot breakout, and bought some at .40 today....i tried to get at the gspot of .37 but missed it...as usual i was too slow to catch it...my td waterhouse takes forever to execute. I actually almost bought some at .35 as it looked like it really wanted to get over the gspot, and I was right...but i hesitated., becasue one time when i bought before it hit the gspot, it actually was a headfake and then started to decline thereafter. Its good to see it actually break the gspot.

But, NMEN is a beautiful gspot breakout...and it looks like it may continue for newer highs. I sold at eod, just becasue I am trying not to hold anything anymore, but I regret doing that, next time i think i will just sell half my position at close and ride the rest to see where it goes.

Today it created a new vol high..so this could also be the start of a new gpattern (not gspot)

Glad u r noticing the gpattern breakouts...if u spot any, post them, becasue the more of us looking the better, sometimes i see them too late...hard to watch so many stocks.

Very nice...again..wish Elite g was here to see his theory working its glory

Another gspot breakout i played today was UWNK...after i saw it break the gspot this am, i bought some and again sold it at close. Im still chicken of the markets these days, but i have to learn how to maximize the gspot breakouts, seems i only get a small percentage..i still dont know how to hold...oh well..at least i got a profit..its about time..lol

glta

julia

[Ares]

Posts regarding shakeouts.

Going to analyze why a cup with handle forms, the desirable features of the pattern and how we select them.

Stage 1: Setup. The pattern starts with a stock rising from a former base. At some point, profit taking sets-in and the stock begins to decline, ending the setup. The maximum price reached at the end of Stage 1 is called the "Left Cup", and the amount by which the stock rose from its prior low is the Setup Gain. To ensure a well-defined left cup, require that the setup gain be at least 30% from the prior low level for it to qualify as a valid left cup.


Stage 2: Decline. The stock now collapses into a new base. The collapse can occur for any number of reasons: poor company results; over-all market conditions; bad news; profit taking after a strong setup stage, and so on. There should be strong selling and volume should be well above average for the first few days of the collapse. Note that collapsing price alone is not sufficient to provide a good CwH pattern, volume is also important. This is because you want most of the buyers from the setup stage to liquidate their holdings, so there will not be a lot of overhead supply when the stock begins to climb the right side of the cup. The combined price and volume action in stage 2 is important if the eventual breakout is to succeed. By the end of stage 2, volume should have fallen to well below average levels as most holders have sold and there is little buying activity, if any. The depth of the base is important also. You do not want the stock to collapse to a level from which recovery will be difficult, if not impossible, so when selecting CwH stocks for your watchlist,  limit the cup depth to be at most 60% of the left cup price.


Stage 3: Recovery. If and when the conditions that brought about the stage 2 collapse have been resolved, the stock may begin to recover. If it does so, the stock will start to climb the right side of the cup. As it does so, we like to see above average volume on days when the price moves up, which indicates that institutions are taking an interest in the stock, but light volume on days when it closes down, indicating that there are small numbers of sellers. Ideally, this constructive price and volume action will strengthen as the right side of the cup is formed and the stock moves higher. Meanwhile, there will be some holders of the stock who bought at or near the left cup price but didn't sell in stage 2. These holders are waiting for the time when they can recoup some or all of their losses. There will also be profit taking by bottom-fishers. As losses are covered or profits are taken there will be pauses in the recovery and a typical cup right-side will exhibit a stair-step characteristic, rather than the smooth ascension. Each of these pauses, or pullbacks, reduces the overhead supply left over from the left cup setup.

As the price on the right side approaches the left cup level, the last holders will finally decide to cut their losses and there will be a large volume sell-off. This often is preceded by a day on which the price spikes on high volume which the sellers have interpreted as an overbought condition and therefore a last opportunity to recoup their losses. This is the point at which the pivot forms, and marks the end of the recovery stage.

There are several technical conditions that must be met before you will recognize a valid pivot. Firstly you want the stock to have attained a strong relative strength when compared to all other stocks, so require an RS of 70 on a scale from 1-99. You also want the pivot to be approaching the left cup level, so require the pivot price to be at least 60% of the left cup. Thirdly, there must have been sufficient time for a shakeout of holders during stage 2, and sufficient time for institutions to notice and take an interest in the stock during stage 3. This is essential if the stock is to be projected to new highs after the breakout. Consequently, require the distance from the left cup to the pivot, to be at least 6 weeks (30 sessions). On the other hand, don't want the cup to be so long as to be meaningless, so there is a maximum cup length of 325 sessions imposed.

Mentioned above the need for constructive price/volume action while the stock is building the right side of its cup. This is measured by Right Cup Quality and is a component of overall Chart Quality.


Stage 4: Consolidation. After the pivot you want and expect to see a shakeout while the overhead supply is depleted. This will cause the price to decline, initially on high volume but then the price should stabilize or drift down on volume well below average levels. The institutions who are tracking the stock know that they want the overhead supply eliminated and will wait for these stable conditions to materialize before they pounce. To identify well behaved handles,  require that the decline (or "droop") in the handle should not be more than 30% of the pivot price, that the mid-point of the handle be above the mid-point of the base and that the minimum time spent in the handle should be two days, but that the overall handle length should not be more than 90 days. Also you do not want the handle to be disproportionate to the cup, so require that the handle be no longer than a third of the cup length. The two day handle minimum is considerably shorter than that recommended by William O'Neil but you want to make sure you don't miss any strong candidates.

Measure the price/volume action in the handle, called Handle Quality, which is also a component of Chart Quality, mentioned earlier.

After the price has stabilized, it is not uncommon to see the price begin to rise on higher volume. This is an indication that institutions are starting to nibble and may indicate a strong breakout to come. I have noticed that breakouts are 17% stronger, on average, when the price and volume rise on the day before the breakout.

When the conditions described in these 4 stages are satisfied, you have a valid CwH pattern and the stock will be placed on CwH watchlist. If the conditions change so the stock no longer meets the criteria, then the stock will be dropped from CwHWatch.  Monitor the stock while it is on CwH Watch and issue a real-time alert if the pivot price is met or exceeded and the projected daily volume exceeded 1.5 times the average daily volume - an indication that institutions are buying the stock in large quantities.

The charts I normally use are Point & Figure (P&F) charts powered by Dorsey Wright & Associates. The P&F charts aren’t news for the oppose it; the P&F analysis is very, very old.

Point & Figure chart analysis was created by Henry Dow (the father of Dow Jones Index). This chart  has been very popular in their time because that it was very simple to maintain a large collection of P&F charts back in the days before computers. In less than an hour, using just a pencil and a graph paper you are able to update and analyse a lot of charts every day. This was the first charts in history.

With the computers the P&F charts started to fade in popularity because it started to be easy draw a lot of different kind of chars with complex data.
However, after trying a lot of other kind of charts I am convinced the P&F chart is the better way to look for the price movements and select stocks.

The P&F charts consisting in a chart of Xs and Os arrange on a square grid. When the stock price falls you draw a O; when price rises your draw a X. Each chart has a setting called the Box that is the amount that a stock needs to move and draw a X or O. When the stock move one box or more you mark in this column the number of box is move drawing a X or O according the trend in the column. You reverse when the stock price moves more then 3 boxes price and mark the movement in the next column drawing the opposite figure to the last movement (X if was O and vice versa)

I prefer the P&F chart to the usually bar or candlestick charts because the P&F eliminate the noise of the market (the insignificant price movements); the support and resistance are more stronger with less traps then other kind of chart, make the trend line recognition a “no-brainer”.

About the ARW I think this is a good opportunity to pay attention to stock and may be buy it.

The stock ARW broke a d Double Bottom at 31USD on May 22nd, 2006 to being a shakeout pattern. If the Double Bottom is a sell signal the shakeout pattern is a very good buy signal and better if the stock price is in a up trend like it is.  The ARW trend is fantastic. The stocks continue trade in a positive trend as it has since 2003. In March the price tries trapping the trend in a hound of baskervilles movement but the trend support and the stock rise for new highs. Currently the Bullish Support Line is at price of  28USD with stock trading at 30.85USD. The stock can touch again the BSL in this shakeout pattern. The bottom of the trading band is at 29USD. So, you can risk and buy to scaling at these levels (market price) with a great ratio risk/reward, otherwise watch for a reversal to Xs.

The only problem I see in this stock is the fact of it is trading bellow the moving averages (50; 150; 200 : 33.66; 33.02; 32.30) but considering 50days>150days>200days and a reversal in chart take the stock above the MA, I think you can accepted the risk.

Relative Strength against the Market and in stock chart are on a Buy signal and the The Monthly, Weekly and Daily momentum are negative.
The stock is trading -52% on the oversold side of the ten week trading band, the middle of this trading band is 33.87.
I see a better stocks in the market and in the sector then this mid cap. But I don’t see problem in buy it with a stop at 25USD considering the positive trend and the 4 of 5 attributes positive.

The stock is optionable if you want you don’t need stop at 25 and you can hedge at 26.

Sincerely,

Orson Vaughan

Cabot's Mid-Week Market Report
February 2, 2006                Volume 5, Issue 169
-------------------------------------------------------------------

In This Issue:

1.)  Feature:   Rising Rates?  No Big Deal
2.)  Investment Tip of the Month - February
3.)  A China Stock in a Steady Uptrend
4.)  Undervalued Stock at $50/share
5.)  Watch This Stock!
6.)  Newsletter Coupon Savings
7.)  About Cabot

-------------------------------------------------------------------


1.     Rising Rates?  No Big Deal

Tuesday morning all the usual things occurred. The sun rose. People went to work. The market opened on time. And the Fed raised interest rates again! That's the fourteenth consecutive rate hike, but the market expected it, so it was no big deal.

Despite all the attention, positive and negative, given to today's interest rate move and the switch of Federal Reserve heads (Greenspan out, Bernanke in), it's best to keep your feet grounded in our proven system. Currently, all three of our "T's" are bullish, with the Cabot Trend Lines and Cabot Tides positive (telling you the intermediate- and longer-term market trends are in your favor) and the Two-Second Indicator revealing no intense, internal selling pressures.

If you're wondering about negatives, we can tell you that after three and a half good months sentiment is starting to get a bit frothy. Our in-house Sentiment Barometer has lifted to 70, its highest level since March of last year. More subjectively, we're getting more phone calls asking for our "one best stock", and we're even hearing from some friends and family who are excited about picking stocks again.

You shouldn't sell out because of these sentiment readings; sentiment, after all, is an inexact indicator, and is only useful at true extremes. Right now, we can't say euphoria is in the air - but we're certainly moving in that direction. If anything, these readings are simply telling you to keep your feet on the ground. Enjoy the gains you've made! But resist getting overly confident, which can lead you to chase stocks that have just made a huge upmove.

________________________________________________


2.    Investment Tip of the Month - February


February, 2006

IT’S EARNINGS SEASON AGAIN!
by Mike Cintolo

Once again we find ourselves smack dab in the middle of earnings season, as hundreds of quarterly reports are being released as we write.  Over the next few weeks, thousands of analysts and money managers will be spending countless hours perusing the reports, listening to conference calls and determining which stocks to buy, which to sell and which to hold.

The collective action of these managers has been causing outsized, violent ups and downs the past few years.  We believe that’s because of Regulation FD, which took effect just a couple of years ago, disallowing any “wink-wink, nudge-nudge” hints from companies to analysts.  Theoretically, everybody is now on a common playing field.

But the flip side to that is that the big boys now have little idea of what a young, fast-growing company is going to say.  The result:  Those huge swings up and down, when many stocks gap up 10% or more … or plummet an equal or greater amount.  When running a concentrated portfolio like the Model Portfolio, such moves definitely increase the stress level.

Seeing such moves, many investors get angry when their stocks go against them, wondering why a stock should fall so much when “they just missed estimates by a penny.”  Well, not to be harsh, but simply put, that’s the world we live in.  If you want to invest in growth stocks these days, you have to take the good with the bad.  And part of the challenge in owning these stocks are the volatility you encounter during earnings season.

In other words, it is what it is.  Don’t argue with a stock’s big downmove if it disappoints Wall Street.  It doesn’t pay to get angry, or to believe that Wall Street is cheating you out of your money.  Instead, realize that this is part of the ballgame … and take steps to adjust your portfolio if one of your holdings falls out of favor.

Our studies show that big gap ups or down following an earnings report tend to lead to follow-on buying (or selling) in the weeks ahead.  And that goes double when the market’s overall trend is in the same direction as the stock’s earnings gap.  So the good news is that this season can allow you to reposition your portfolio – into strong stocks, out of weak ones.  Bottom line, if you look at these times of years as opportunities, earnings seasons can help your portfolio immensely, not just create nervousness and headaches.

Cabot's Investment Tip of the Month, Copyright 2006. ________________________________________________

"Happiness is not something you experience, it's something you remember."

Oscar Levant, 1906-1972, US pianist and composer ________________________________________________


3.   A China Stock in a Steady Uptrend

Multi-Fineline Electronix (MFLX) The flexible circuit business is booming, as cell phones, laptops and more are designed to fit the customer first and the inner hardware second.  And Multi Fineline is a main beneficiary of that trend.  The stock looks great, featuring both a steady uptrend and solid support at 50.  Fourth quarter earnings will be announced today, February 2 . 

Current Cabot Recommendation: BUY

China Stock Profile  courtesy of Cabot China Investor Report, Copyright 2006. For subscription information, visit: http://www.cabotchina.com

________________________________________________


4.    Undervalued Stock at $50/share

Cabot Benjamin Graham Value Letter
Featured Stock:  Overseas Shipholding (OSG)  Price: $50

Wrap up:
-----------
OSG is currently riding the wave of heavy demand for oil and gas shipping.  We expect OSG to easily reach our sell price of $91 within two years. This company is one of the largest independent shipping companies in the world, specializing in the transportation of crude oil and petroleum products.

The recent acquisition of Stellmar Shipping will greatly enhance revenues and earnings for OSG and higher shipping rates will translate to big earnings gains during the next two quarters.

Interested in building your wealth with undervalued stocks like OSG?  

Visit the Cabot Benjamin Graham Value Letter at: https://secure.netatlantic.com/benjamingraham/orderform.html

________________________________________________


5.     Watch This Stock!

Cabot Top 10 Featured Stock:
TradeStation (TRAD)
=============================
Why The Strength?

While bull markets benefit all stocks, they’re particularly kind to companies that benefit directly from that bull market – brokers and investment houses. TradeStation is an up-and-coming Internet brokerage firm that tailors itself to professional and active investors, with state-of-the-art order execution and data availability, as well as the ability to create and backtest numerous trading strategies for stocks and futures. Business here has always been leveraged to the market’s performance – when things are good, the number of trades (and hence,
revenue) booms, and thanks to its all-Internet operations, those higher revenues fall right to the bottom line. Right now, we see revenue growth accelerating, and from previously announced metrics, fourth-quarter growth should come in around 40%. A big market downturn would hurt, of course, but if this bull market persists, TradeStation should do very well.

Technical Analysis

From 1 at the end of the bear market, TRAD spurted ahead to 13 in 2003, as business recovered along with the stock market that year. But then, despite a grudgingly-advancing market in 2004 and much of 2005, this stock corrected and consolidated, building a huge, long base. The breakout didn’t come until the end of October, when TRAD bolted to 12, and after testing that level numerous times over the next few weeks, the stock and RP line have shot ahead to new highs on huge volume. Earnings are due out February 14, and that’s sure to have an impact on the stock’s near-term action. Overall, however, we expect this uptrend to continue. You could buy a little up here, but a quick shakeout toward 15 would offer a great entry level.

Cabot Suggested Buy Range: 15-16 1/2

=================================
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Remember, this offer is risk-free . . . . right up until your last issue!

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All new subscribers are entitled to a 100% risk-free guarantee. You've got nothing to lose!

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7.    About Cabot

Founded by Carlton G. Lutts in 1970, The Cabot Heritage Corporation is an independent publisher of investment advice.  Neither the corporation nor its employees are compensated in any way by the companies whose stocks we recommend.

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Cabot Top Ten Report is based upon a proprietary software system designed by Cabot to sifts through over 8,000 of the market's stock charts each Monday.  The result is 10 stocks guaranteed to be outperforming the market for that week each profiled with an easy-to-read chart and technical and fundamental analysis.  Charter Subscription available for just $74/year. https://secure.netatlantic.com/cabot/top10/orderform74.html

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The Cabot Heritage Corporation is an independent publisher of investment advice.  Neither the corporation nor its employees are compensated in any way by the companies whose stocks we recommend. We may or may not buy and sell securities mentioned.  Sources of information are believed to be reliable, but they are in no way guaranteed to be complete or without error.  Recommendations, opinions or suggestions are given with the understanding that subscribers acting on information assume all risks involved.

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========================

P&F Charting : The main trend of AET is bullish and stock continue have very strong relative straight characteristics.

The stock make a shakeout but with the CEO and CFO leaving the company the price drop and broke a triple bottom. Now reversed to Xs and is 100% oversold.

What do you think?

This is an important new change in sentiment for HANS starting today and deserves a new thread for discussion of a new long position timing starting today!

Short covering is expected starting now, off this triple bottom.

HANS (great time to go long now) Hansen Natural Target $42.50   

--------------------------------------------------------------------------------
Triple bottom, with well established support at ~ $25.

Selling volume diminishing, bottom is in, techs are deeply oversold. This stock is a whopping -50% off of its high pps, and far too oversold. Short trap seems certain. Confirmation met twice with buying on heavy volume and large % increase in pps. Whipsaw action shows Market Makers are playing momentum while accumulating and covering their short positions. Retail Capitulation is well behind HANS now, and now the up game will begin.

Those who are bailing are already bailed. MM's are in control and will take it to where the volume is next (higher prices coming).

Hansen has already stated that the options issue will not have a material effect on earnings, past or present. This is a low level concern at best. With the current numbers and increased earnings and proven growth track record, this latest dip to the triple bottom is the final shakeout of the last of the weak hands.

HANS will gap up and run up strong as soon as the Market Makers get their shares and instill a little more fear. It could happen today, Monday morning, but regardless - a company this strong financially and with this kind of proven growth will be in great demand for funds and retailers in the know. The rest will follow along as usual.

Many funds have been looking for this kind of selloff, to begin buying and this selloff was way too overdone. Even analysts agree the target value is $45 still.

Support at $25, gap-fill takes it to $42 approx.

Recommended buy is $25.25

Target PPS is $42.50
within 2 to 5 weeks

Interesting shakeout over the past few sessions. A retest of the 50sma on low volume and then a bounce to the upper descending line. As my notes said I had a stop at $10.70, but didn't sell as volume was low and I suspected this was just a retest of support before a new upward move. Todays close  near the high and right on the descending line of resistance. I expect to see the 1H results out next week.

The weekly technical resistance we discussed yesterday began to make itself felt on Monday, and despite strong retail sales data over the weekend the retailers were rather severely punished. This was discouraging to some investors considering that oil was down two bucks and the market tends to take heart when oil falls, as it directly impacts the consumer in a positive manner. Much of the leadership for the market however, has come from mid-caps, especially energy names, and when they sell off and other sectors don’t benefit from capital rotation, then the market as a whole swoons. That’s what happened on Monday, as the profit-taking was broad-based.
Sales of existing homes fell 3.7% in October and there is now a great deal of awareness about the extent to which equity extraction has supported the U.S. consumer and therefore the economy and the stock market. That figure appears to be around $700 billion or 7-8% of annual income for the average homeowner. This is old news to TSR subscribers. Despite the 3.7% drop, the long-term trend in existing home sales is still up, having gone from an annual rate of 5 million to 7 million over the last 4 years.

Meanwhile, the percent of equity for the average homeowner has fallen steadily for the last 30 years, and now sits at 54%. In other words, drawing an analogy to an equity trading account, the average homeowner is operating this investment at full margin. Given that there are more than 20 metropolitan regions in the U.S. that experienced greater than 20% appreciation in home prices in the last year, with some such as Phoenix rising 55% over that period, it is not surprising that the equity percent has fallen. The wealth effect for this amount of equity appreciation remains unquantifiable but it is real. Moreover, we also know that this type of real estate appreciation is not just a U.S. phenomenon; it is happening globally. We are in the midst of a worldwide economic boom. At some point all the good news will be priced in, but we don’t think we are there yet. We anticipate more euphoria and more violent price swings the top.

As the market has begun a correction, we have six charts below to give you a sense of the big picture. Briefly, both the large caps and the small caps are undergoing tests at important resistance. Some of this resistance is due to trading patterns over the last two years but for the Nasdaq and Nasdaq 100 there is even a resistance element from the two tops made in May and December of 2001.

This is an important test and there are two ways to analyze it: price/volume behavior and market internals (the A/D and new 52-wk highs and lows). In terms of price, the key number to watch on the S&P 500 is 1247. We don’t want to see that price support taken out on a closing basis, especially with any virulence. On the Nasdaq, ideally we want 2232 to hold on a closing basis, which is just 7 points lower than Monday’s close. That is not much wiggle room for the 4-letter crowd. Watch the semiconductors, which will tell the tale for the Naz. If the SMH can stay above $37 on a closing basis we are locked and loaded for a continuation of the 4-letter rally.

We also use market internals to gauge the underlying health of the market and so far the bull is doing just fine. These indicators are telling us that we are in a pullback similar to the one we had in late June. At that time the market had advanced fairly steadily for 27 days from the May 16 reversal and experienced two days of rather intense selling. That selling led to a two-week base that resolved positively on 7/7. As of Monday, we had rallied for 27 days from the 10/19 reversal day, so we are due for a similar shakeout. The fact that this test comes when the S&P 500 is at weekly resistance makes it more significant, however.

Anyone got any idea what's going on with HYRF???

Any ideas?

Judging from the high volume, Friday was the shakeout as traders exited their positions on the news (I mean, c'mon, the gains have been incredible!).  Today there is another down day... BUT notice how the volume is drying up today.  I take this as a good sign... in fact, if it were high volume I would exit today.  But I believe that all is okay and these are the final traders wanting to cash out their gains after seeing that "it's down again."

It remains to be seen whether HYRF will drift down slowly on low volume and become a dull stock for a while, or if this is a shakeout of one wave of traders.  My suspicion is it's the later, and that it will resume its uptrend at a more moderate pace within a month.  Disclosure: I must admit I cashed out half of my position around $1.10... but I am still holding half, and I think I will hang on to it for a while!

I'm also in but couldn't sell anything quick enough to get closer to the low like you guys.  I know this has had quite a run but that was an impressive shakeout!  Would have been nice to pick up the shares on the retest....

I tracked the trades late in the day which I feel is the most important time to watch. It was quite Bullish which is a good sign to me.

I will hold regardless as to what happens in the short term as I believe there is just to much potential here and CCE did not get  into this to lose $$.

SOF  well you do need to be a soldier sometimes to fight for what you believe is true concerning the sub $1 issues! When these issues flounder allittle it is best not to fret when they fall as it does not help. These OTCBB are very Volitile which makes many people impatient and have mood swings I have found. I no longer look at the paper loss on them! I sit guilty also as I am impatient at times,but try not to have mood swings as it does not help and even hurts some people. Last thing I need to do is hurt others I think.

Did not know there was a Mag also! Will check it out as there are very few sources that follow low priced stocks. 

Last thing I will mention is to give an example of how dead the markets are with the exception of Oil or Energy .Today CYTR ,which I own in the Bio sector with a great mgmt. team, came out with news that people have been waiting months for.Did not do anything for the pps.

Hang in there,it will get better I believe! Nothing has changed.CCE is not in this to lose $$ right. It might just be a shakeout due to market conditions. I will be adding more shares at these prices! I predict this will move up on no news one day. The best stocks always do.

Chart still looks good...looks like a takeprofit/shakeout day. Note how it bounced off support at .004. If it drops through .004 on heavy volume, it will likely go lower for today...but it don't think we will see that happen.

Based on current earnings I would value this @ between .005 and .01. Soon I believe it will find that level. But it won't hold it for long without news...

JMHO

masta

Following the news release regarding investment and 'possible' CECT IPO XING touched the 50sma and powered back above resistance and near 52 week high close on great volume. Technically very strong and should provide perfect stage for follow through to new highs next week. The action prior to the financing release was classic shakeout activity, interestingly seems there is 2M+ shares short on a current 18.6M shares outstanding.

I think the news has negated what did appear H&S top as Melf correctly pointed out a few days back. News can always change the chart.

Good luck to those back in.

Early morning shakeout ??

Another chance to buy under .85

KC, I somewhat understand the MM tactics.  That is why I also don't like to use trailing stops and if I do use them, I position below where I think the shakeout would take the stock.  But I rarely use them so don't have to decide a shakeout price very often.

I agree that the fundamentals look pretty good on TIII.  I am bothered by the fact that while the NASDAQ is in rally mode and hits new 4 1/2 year highs, TIII declines.  I do expect some pullback after the run it's had though, just didn't expect it to bring the stock down 20%+ in just a few days.  And to see that 20% profit go away that quickly isn't fun either.