(Total Views: 758)
Posted On: 08/29/2017 10:26:21 AM
Post# of 780
Yesterday was the biggest letdown since I've been vested ~3 years here. I really expected management to follow through on the momentum with as much volume last Friday. Now that I've got the disappointment out of the way...
However, I have to remind myself of several things:
- Volume ALWAYS precedes price
- Significant volume with a 100% up move (close green) is a positive direction indicator
- Fact: MMs always know in advance (if not, shortly thereafter) if something is brewing
- Cellar boxing results in MM's holding the stock down to cover and load for the upmove
- 10Q / PRs indicate number key points we could receive follow up MAJOR news
All I know for sure is, based on my experience with other stocks, after a HUGE volume day resulting in only a 100%-200% (OTC) move, it's not uncommon to see 5-10 trading days where the MM pull back the stock, slowly covering and loading for next BIG move up. Many other stocks I've seen perform this way...
However, I have to remind myself of several things:
- Volume ALWAYS precedes price
- Significant volume with a 100% up move (close green) is a positive direction indicator
- Fact: MMs always know in advance (if not, shortly thereafter) if something is brewing
- Cellar boxing results in MM's holding the stock down to cover and load for the upmove
- 10Q / PRs indicate number key points we could receive follow up MAJOR news
All I know for sure is, based on my experience with other stocks, after a HUGE volume day resulting in only a 100%-200% (OTC) move, it's not uncommon to see 5-10 trading days where the MM pull back the stock, slowly covering and loading for next BIG move up. Many other stocks I've seen perform this way...
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