Just a quick analysis
This stock jumped from $1.38 ish to $1.65 in a matter of 50,000 shares or so. The next day many jumped back into the game at even higher prices and are leaving the trade as we speak.
This is what I wrote on the eve of the breakout and sent to our subscribers at 2am or so….
“Since this is nothing new there may not be enough support to hold the price since it’s not the actual veto lift…. But given the current situation with the short attack I think this may just hold when the market opens”
This is similar to what actually happened….and was confirmed when reading the SA article today.
News came… then a short squeeze and buying frenzy then people learned the news was not as significant as they thought and sold. Unfortunately the short squeeze was not big enough and the world was brought to speed the next day. If this stock would have broke $2 I think it would have been enough of a catalyst and the newcomers would still be in the game.
I think emotions are the best indicator right now.
Looking at the volume over the last few days…(these are rough numbers)
Buying frenzy (wed) 24,000,000
First day sell off (thur)10,000,000
Today (mon) 5,000,000
That’s roughly 9,000,000 more new shares left in the game (In theory)
We can only hope the remaining stay strong in light of the not so significant news and realize this is just a big game and the strong and informed can win. If the selloff continues we may see our previous lows of mid $1.30s in which we saw before the permit news. I know a lot of convinced people have taken the opportunity to “load up” so hopefully most longs out there took the opportunity to do the same today and yesterday adding even more support.
Upon seeing the fact we have only half the volume today I can assume that with no new news this will bring us down to our recent normal volume of 1.5-2.5 million shares/day and we’ll maintain our price from there. It’s just a matter of what price that will be when we get to the lower volume. Hopefully at least in the upper $1.40s but am prepared for any price…. I can honestly say that I think pre Deadline we are in the clear of seeing our previous low of $1.08
And as I stated in the past maybe the day traders will add support in the mean time while we wait for real support from long term.
Just a thought……
These are just thoughts from my head in an attempt to learn this stock and the emotions of the individuals playing the game. One should not make any financial decisions based on this article alone