$RFMK, watch for a 20/50 DMA cross and pullback $

$RFMK, watch for a 20/50 DMA cross and pullback

$RFMK is currently one of the most heavily promoted stocks in penny land. It is  spreading around like a poorly kept secret.

Let's analyze the chart for a moment, though. In the past 10 days it's had 5 days of roughly 50 mm shares traded, giving it the highest weekly volume last week since the stock started trading.

It's important not to be a bag holder in these kind of plays because someone who accumulated .001 still makes a 100% gain by flipping the stock to you at .002.

Promotion stocks can be tremendous runners but you have to stack the odds in your favor. I am going to watch for the following setup:

1. 20 day moving average to cross the 50 day moving average to establish a daily chart uptrend

2. Another rally and slam down shakeout to the lows with an intraday deep pierce of the moving averages possibly down to .001.

I have noticed that there are a number of instances where the big boys like to line all the technicals up properly, fake a breakout, only to slam everyone down at the end of the week to collect their shares at a discount, then bring it back up.

Given that this is a promo stock in which I've been getting emails and tweets on for at least 2 weeks, I put the odds of a shakeout at at least 85%.

Never get caught up in the hype either in pennyland or on the big boards. Approach the penny stocks like you are Rick Harrison, the bald guy from Pawn Stars. Never take your first offer and be sure to get as deep of discount as possible so that in case you are wrong you don't get crushed.

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