Asleep at the Wheel

[rich pearl]

INMG... ugly, but possibly necessary day. chart shows a stock looking for a floor to serve as support. the moving averages that serve as the support lines in a run - 5/10/20 - have turned from support to resistance. yesterday the 10ma stopped an upmove, and today this couldn't take out the 5ma on the open. it then closed below the 20ma. ouch!

of course, this is the issue with any stock that has a run of such multiples. its still 5-fold up from the lift-off at .0018. obviously this was over-extended, and now its stretching the limits of the pennant on the chart.

http://www.profitspi.com/stock-chart.aspx?id=INMG&ca=1537231564

the chart no longer shows a pretty picture. but, then, too, it doesn't show a stock in its death throes. what it shows is a stock in search of a bottom to hold and ultimately serve as a platform for a continuance of the upmove. when this blew out all the way to .0285 it left behind no floor to stand on. so now its retracing those steps in search of a new base, and the selling is outpacing the buying. BUT... big but... this went up with strength. lots of volume, especially at the tops. it has come down on paltry volume, and if the company is to be believed that they are not the sellers -- the a/d seems to confirm this -- it would mean then that the selling is all retail, as in daytraders, bottom loaders, losss cutters, etc, all of whom are putting shares back in to the float, as referenced on the chart by the chiosc. unfortunately this has not reached oversold territory yet so another drop may be in line.

that said, on my chart i've substituted the mfi for the cmf. there's still decent pressure on the ask, but they've tightened the spread here and still sold down, so the question i have in mind is in relation to whether the money is coming in or going out. after a run this big, its important to dwell on whether the game is over or not. if the money is not cratering southward its a sign of continued interest, and what i see infers that this one is certainly not dead.

finally, there's the case of the 5M share cross trade. when this was breaking out it met resistance in the form of the MM ASCM, who is most certainly not retail. nor is he buyer friendly. my surmisal is that this stock was frontloaded, there was plenty of time to buy and accumulate large under .002, and then they shorted the stock knowing they could cover. iow, today's trade was part of a covered short.

there is still quite a bit of weakness in this chart that could be exploited, but volume wise, this has not yet become a dumpfest. i expect this may retrace further, but i think the bottom may be a gift to those who find their shares there.

** at this time i see no buy signals on the chart. i'm holding here. **