A bullish chart full of professional accumulation.
Below are the current weekly and daily charts for JBII with Volume Spread Analysis annotations.
WEEKLY CHART: (CANDLESTICK)
In the weekly chart, ultra high volume buying action was spotted. After a long and dragging down trend from peaks at over $4, price was finally manipulated to fall briefly below $1. Manipulation included a hit piece authored by an "analyst" & the SEC raising a bogus lawsuit with no leg to stand on. etc. It was confirmed as professional buying action since volume was so incredibly high- resulting in (from a VSA stand point) a bullish reaction in the face of "terrible" news. (Amateur investors do not rush in to buy millions of dollars worth of shares of OTC stock in a company being sued for "fraud" while analysts are suddenly saying it is a scam shell stock.) It is important to note that the word of the SEC complaint/lawsuit against the company was released with 25 minutes left of trading for the day on January 4th. A PPS of $2.20+ with 85k volume for the day quickly turned to a PPS of $.76 with volume 930k. This volume was nothing compared to that of January 5th. On January 5th, anyone who was not a die hard shareholder sold their shares in a panic. Someone was there to step in and buy every single share that hit the market.
DAILY CHART: CANDLESTICK
An imbalance of buying was confirmed by the automatic rally immediately following this shakeout maneuver. This proves that someone/some people were not listening to the "bad news". Instead, they were taking full advantage of all of the scared herd sellers. The close of this shakeout candle on the weekly chart has proven to be of great importance as you can see we have been rejected from it twice recently. On January 12th, an analyst from seeking alpha posted an article basically claiming JBII is a scam company created by a criminal. Someone was also ready to buy every share that hit the market this day- the next 3 days closed higher, indicating an imbalance of buying action. Now, let's take a more in depth look at the key areas of support and resistance on the daily chart.
DAILY CHART: (HIGH LOW CLOSE)
Exhibit A: The first signs of professional buying interest on this particular chart. This is a shakeout bar with very high volume. Imbalance of buying action confirmed by automatic rally.
Exhibit B: Another shakeout bar into even lower territory in a down trend. Imbalance of buying action confirmed by automatic rally.
Exhibit C: The end of a falling market. Volume is extremely low despite the low prices- even the herd isn't selling to the hungry pros because retail traders have already been robbed of their shares. This can be seen as a no supply test confirmed by a rally.
Exhibit D. Rally is quickly lifted to elevated prices outside of the professional accumulation zone right before the 10Q comes out (pro accumulation zone = dark blue horizontal lines on price chart). This happened for two reasons: 1.) Professionals are still hungry for shares. 2.) JBII is starting to look like a good buy to the general public and pros cannot let the herd (retail) buy shares at desirable prices. Notice the ultra high volume during these two days. This is because professionals are selling to the herd because the pros are not done accumulating and don't want retail buy orders getting in the way at low prices.
Exhibit E: Professionals allow the rally to continue all the while selling to the herd in order to stifle the momentum. The herd is buying shares at high prices- professionals are counting on these amateurs to buy high and sell low after the PPS is rigged to drop back into the pro accumulation zone. Here, you can see an upthrust followed by no demand (VSA signs of weakness - SOW). A collapse of price back into the accumulation zone immediately follows. (I made a post calling this collapse in real time before it happened. Check my post history on IHUB along with chart analysis on 5/30/2012 9:09:31 PM)
Exhibit F: First shakeout on very high volume after collapse from $1.50. High volume indicates there are more shares to be taken from the herd sellers. This is why we continue to see lower prices in the next few days.
Exhibit G: Increasing volume over 3 day period resulting in a tightening of the spread of the bar. This is a selling climax and very forceful stopping volume (I think it's called bag holding and it is a very strong sign of strength). Short spread bar indicates every sell order being systematically bought by smart money as soon as they hit the market. Close of day is near the middle. Volume is ultra high. Imbalance of buying action confirmed by automatic rally.
Exhibit H: These pros are greedy. This is a shakeout-test bar into the same area as selling climax, but volume is ULTRA LOW. This indicates all sellers have sold- there are no more shares to be had in this market at this time. This is confirmed by a rally back to $1.50 to give this stock some room to breath. Interesting note: volume remains very low all the way until Exhibit I.
Exhibit I: Very interesting day here. The volume on this day was almost all FAKE. I was watching the trades in real time all day long. Vast majority of volume on this day appeared to be even 10,000, 11,000, and 12,000 share blocks being swapped back and forth. This appeared to be wash trading.
Documentation:
Below are the current weekly and daily charts for JBII with Volume Spread Analysis annotations.
WEEKLY CHART: (CANDLESTICK)
In the weekly chart, ultra high volume buying action was spotted. After a long and dragging down trend from peaks at over $4, price was finally manipulated to fall briefly below $1. Manipulation included a hit piece authored by an "analyst" & the SEC raising a bogus lawsuit with no leg to stand on. etc. It was confirmed as professional buying action since volume was so incredibly high- resulting in (from a VSA stand point) a bullish reaction in the face of "terrible" news. (Amateur investors do not rush in to buy millions of dollars worth of shares of OTC stock in a company being sued for "fraud" while analysts are suddenly saying it is a scam shell stock.) It is important to note that the word of the SEC complaint/lawsuit against the company was released with 25 minutes left of trading for the day on January 4th. A PPS of $2.20+ with 85k volume for the day quickly turned to a PPS of $.76 with volume 930k. This volume was nothing compared to that of January 5th. On January 5th, anyone who was not a die hard shareholder sold their shares in a panic. Someone was there to step in and buy every single share that hit the market.
DAILY CHART: CANDLESTICK
An imbalance of buying was confirmed by the automatic rally immediately following this shakeout maneuver. This proves that someone/some people were not listening to the "bad news". Instead, they were taking full advantage of all of the scared herd sellers. The close of this shakeout candle on the weekly chart has proven to be of great importance as you can see we have been rejected from it twice recently. On January 12th, an analyst from seeking alpha posted an article basically claiming JBII is a scam company created by a criminal. Someone was also ready to buy every share that hit the market this day- the next 3 days closed higher, indicating an imbalance of buying action. Now, let's take a more in depth look at the key areas of support and resistance on the daily chart.
DAILY CHART: (HIGH LOW CLOSE)
Exhibit A: The first signs of professional buying interest on this particular chart. This is a shakeout bar with very high volume. Imbalance of buying action confirmed by automatic rally.
Exhibit B: Another shakeout bar into even lower territory in a down trend. Imbalance of buying action confirmed by automatic rally.
Exhibit C: The end of a falling market. Volume is extremely low despite the low prices- even the herd isn't selling to the hungry pros because retail traders have already been robbed of their shares. This can be seen as a no supply test confirmed by a rally.
Exhibit D. Rally is quickly lifted to elevated prices outside of the professional accumulation zone right before the 10Q comes out (pro accumulation zone = dark blue horizontal lines on price chart). This happened for two reasons: 1.) Professionals are still hungry for shares. 2.) JBII is starting to look like a good buy to the general public and pros cannot let the herd (retail) buy shares at desirable prices. Notice the ultra high volume during these two days. This is because professionals are selling to the herd because the pros are not done accumulating and don't want retail buy orders getting in the way at low prices.
Exhibit E: Professionals allow the rally to continue all the while selling to the herd in order to stifle the momentum. The herd is buying shares at high prices- professionals are counting on these amateurs to buy high and sell low after the PPS is rigged to drop back into the pro accumulation zone. Here, you can see an upthrust followed by no demand (VSA signs of weakness - SOW). A collapse of price back into the accumulation zone immediately follows. (I made a post calling this collapse in real time before it happened. Check my post history on IHUB along with chart analysis on 5/30/2012 9:09:31 PM)
Exhibit F: First shakeout on very high volume after collapse from $1.50. High volume indicates there are more shares to be taken from the herd sellers. This is why we continue to see lower prices in the next few days.
Exhibit G: Increasing volume over 3 day period resulting in a tightening of the spread of the bar. This is a selling climax and very forceful stopping volume (I think it's called bag holding and it is a very strong sign of strength). Short spread bar indicates every sell order being systematically bought by smart money as soon as they hit the market. Close of day is near the middle. Volume is ultra high. Imbalance of buying action confirmed by automatic rally.
Exhibit H: These pros are greedy. This is a shakeout-test bar into the same area as selling climax, but volume is ULTRA LOW. This indicates all sellers have sold- there are no more shares to be had in this market at this time. This is confirmed by a rally back to $1.50 to give this stock some room to breath. Interesting note: volume remains very low all the way until Exhibit I.
Exhibit I: Very interesting day here. The volume on this day was almost all FAKE. I was watching the trades in real time all day long. Vast majority of volume on this day appeared to be even 10,000, 11,000, and 12,000 share blocks being swapped back and forth. This appeared to be wash trading.
Documentation:
