Watching the chart with some TA (below). These flash crashes and cascading stop losses should be over with for now. Well we got our "correction" with an ATM shelf of 8.3mm shares and 30% dilution. Seeing possible short term sideways around the 2.20's. Biotech Institutionals may move in to make their final quarter portfolio for the year to look good after this stinko year.
Dilution over or Breakout indicators: watch for OBV, CHiOsc, MFI and Accum/Dist all turning up together... with less weight to Accum/Dist. & more weight to ChiOsc & MFI turning up together.
The three trading sectors of the market
First... On Balance Volume is the one that tracks insider and registered shareholder money going in and out of the stock, the OBV indicator will go down when different SEC forms are filed showing distribution by insiders (yes, it that “D” in that box on form 4}. OBV (MA 14) trend line up indicates no dilution. Daily spikes of the OBV indicator show settled & unsettled shares, shorting & covering while riding on the MA 14 filter.
Second ... Accumulation/Distribution tracks the individual or less than %5 retail shareholder. many times Accum/Dist will go up while the PPS of a stock is going lower and lower; also while the PPS is going lower, investors on the message board for the stock, will be talking about buying, and how many shares they hold.
Thirdly... Chaikin Oscillator controls the PPS more than the other two.... the PPS will tank when this indicator goes down, even if OBV and Accum/Dist are going up, this fact alone makes know this indicator tracks "the shares" that rule the stock (MMs in other words). OBV, and Accum/Dist can be going up, but until ChiOsc goes up the PPS will stay lower, or continue going down..... ChiOsc can go up before the PPS goes up, indicating that MMs are accumulating before a run. Now that the shorting rule has changed to allow shorting on the way down, they can cover on the way down, this also makes it easier for them to short a stock into the ground.
Summery
OBV = Insiders, big share holder investors(institutional, etc. and Registered shareholders that is; individual shareholders with more than 5% holdings in the company).
Accum/Dist = over the counter individual Retail shareholders with less than 5% of the company stock.
ChiOsc = those who control the stock PPS and chart actions, that being MMs. Try to think of the various MM shops as computer driven algorithms which in reality is what they are.
These three technical indicators have explanations on StockCharts.com and other places, that tell what they do technically, but they also work to track the buy/sell sentiment of the different sectors of shareholders.
