Another close above the 20 DMA I was out and abou

Another close above the 20 DMA

I was out and about for the last hour of trading, but it was good to come back and see yet another close above the 20 DMA with a higher close than yesterday. It looks like both sides are pausing ahead of news. The bears are content to play defense for now, keeping the prints below 3.5 cents, and the bulls seem to be content nibbling on ask but not necessarily buying on significant volume given that just days ago shares were struggling to hold 3 cents.

We are so close to a major catalyst that the bears have to tread cautiously. They have already committed a lot of shares to keeping this down in the low 3's, committing even more is already having a marginal return on their trade while substantially exposing them to more risk. What they will do is sit back, try to keep the price down in the mid 3's and if there is a breakout, do what they do every time, pick a high spot where they can try to push the stock back down.

If you think back to the July rally, the bears were really on the ropes. If TECO got the daily close above 7 cents, TECO could have easily blasted towards the 52 week highs. However, the bears picked their spot, waited for things to cool down, and just started to hammer away again at the stock. The bears recurring strategy is to hope that Treaty will stumble and face delays so they can continue to short and distort. I have to admit that the bear's strategy has served them well on this stock as long as I have been in it.

However, they only need to be wrong once and the gig is up.

Watch for the stock to continue to trade sideways above the 20 DMA in anticipation of news catalysts.

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