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Dead Cat Bounce:
Posted by: Buckey
In reply to: 1millionfl who wrote msg# 221121
Date:12/19/2006 9:46:30 PM
Post #of 292592
YOu do know what a dead cat bounce is ????
so new lows coming I guess. YOU like 95% of other mis-use this term.
1.
http://www.wordspy.com/words/deadcatbounce.asp
In that case, the run-up will produce disappointment as shareholders wait for profits that never materialize.
2. http://en.wikipedia.org/wiki/Dead_cat_bounce
3.http://www.worldwidewords.org/qa/qa-dea3.htm
The nature of that rally is going to be extremely important, because if it’s just a dead cat bounce, then I would say we were in for real trouble”.
4. http://daytrading.about.com/library/jargon/bl_deadcat.htm
When a security has declined far and fast it will inevitably stage a small rally. If the rally is of the dead cat bounce variety, it is only a breather before continuing the decline.
Dead cat bounces will attract some buyers who believe the worst is over. These bottom pickers will often feel pain as the decline resumes.
Think about it. Drop a dead cat from a height and it will bounce. But only so high before it turns around and goes guess where?
http://investorshub.advfn.com/boards/read_msg.asp?message_id=15680639
Sorry Cant resist one of the all time greats:
Great DD from Sterling!!!!!!
By: stervc
21 May 2004, 02:44 PM EDT
Msg. 5674 of 210615
Jump to msg. #
CMKX-Great News-Must Read...
I just talked with, Frank, a very reliable source that many of you know from the CMKX board. We just got info directly from Urban himself to one of our sources whose name is Topogigio on the RB board. Here is a quick rundown of info:
** We have diamonds! Many of them!!!
** We have the largest diamond find ever!
** We have Platinum!
** We have Gold!
** We have other resources!
** We have a naked short position of 1 Trillion shares!
** We don't have 1.4 million acres, we have millions of acres!
** Urban said that CMKX will be at .50 to .60 cents even without the covering of the naked short position!
** There is much more that I will get with you all later!
** My apologies if this sounds like hype!!!
...
Sterling
http://ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&board=CLB01219&read=5674&su....
By: stervc
24 May 2004, 08:48 AM EDT
Msg. 6425 of 342295
Jump to msg. #
*CMKX & Urban Casavant*The Perfect Storm*
I chose this title because I think this is the name that fits the upcoming success story with CMKX. I think I heard either Peter or Frank mention it too and I liked it. Urban Casavant has the same goal as I which is to create a million millionaires for those who have read my initial posts on my board. What a coincidence.
Please consider these thoughts that you are about to read as theory until proven as facts from Urban and CMKX.
Urban believes that the naked short position on CMKX could very well be 1 trillion shares. To force the shorts to cover, an accountability process must take place. The changing of the CUSIP# was done earlier for them to first gather internal accountability of all CMKX shares. Also to kind of serve as a warning for the market makers, MMs, to consider covering any naked shorted positions.
Now comes the time to force the MMs to gather accountability for covering. Urban can do this by re-issuing CIM shares as a dividend to all current shareholders of CMKX shares to be effective by an execution date sometime in the near future. Maybe some date like 15 Jun or 30 June 04.
But first and at the same time, announce that CMKX has made a $1.00 per share tender offer to buy all shares of CMKX shareholder s shares to take the company private. They will be willing to do this because insiders own at least 85.7% of the OS so it would really be like buying out yourself or paying yourself. Going private along with re-issuing the CIM dividend will no doubt force the MMs to cover all naked shorted positions.
You can do a lot when you own billions of dollars in gold, platinum, uranium, kimberlite, and diamonds to say the least. Buying us out to go private at $1.00 per share still might be too low, but I m sure many would appreciate such yet still.
Now after the announcement of taking CMKX private, CMKX will make the announcement that those who buy CMKX up to the new execution date will receive a 1,000 to 1 dividend of CIM shares to further compensate the value that the company has determined to award fair value to its shareholders.
That s right, CMKX will take back those already old CIM shares to give them in return the newly re-issued CIM shares with value unlike before. Others who never had any CIM shares would receive CIM shares under the same newly 1,000 to 1 ratio and investors will have up until the new execution date to buy to receive the newly re-issued CIM shares dividend.
They will also announce that CIM will apply for a new CUSIP# and ticker to submit application to trading on the NASDAQ National Market since they must trade with four symbols on the NASDAQ markets. They will announce that Qualifications are expected to be met by some future date maybe like 31 Jul or Aug 04 to submit application to the NASDAQ National Market. This means that CIM would trade at no lower than $5.00 per share.
The Look of the CIM Dividend
We will guess and say that CMKX OS is 40 billion shares and the OS for CIM is to be 40 million shares.
CMKX OS ÷ CIM OS = Dividend Ratio
40,000,000,000 ÷ 40,000,000 = Dividend Ratio
1,000 = Dividend Ratio
With 1,000 to 1 Dividend of CIM shares this means you pay the following to get the end result listed below:
1,000 Shares of CMKX = .10 cents
1 Share of CIM = $5.00
So
1,000 Shares of CMKX = 1 Share of CIM
Or to better review...
.10 cents = $5.00
This is saying that for every .10 cents you spend, you will receive $5.00 back in return.
In Summary
** If you bought 10,000,000 shares of CMKX at .0001 cent, it would cost you $1,000 total.
In return you would receive in CIM shares:
CMKX shares ÷ Dividend Ratio = Total shares of CIM
10,000,000 ÷ 1,000 = 10,000
This means that your total value in your brokerage account would be as below:
10,000,000 x .0001 = $1,000 for CMKX
10,000 x $5.00 = $50,000 for CIM
Again, not a merger, a dividend to where the shareholders get to keep their 10,000,000 shares of CMKX and receive their new 10,000 shares of CIM at the dividend rate of 1 CIM share for every 1,000 CMKX shares you have or buy before the execution date in the very near future. The total amount from the brokerage account would be $51,000 from your initial investment of $1,000 of CMKX shares, right?
Not so. Don t forget that your 10,000,000 million shares of CMKX will be given the tender offer of $1.00 per share so that would make that equate to:
$10,000,000 + $50,000 = $10,050,000 in total value
This is very powerful. CIM is used as the company for the dividend because CIM has claims to a huge zinc find that is valued at a tremendous amount. Urban wants to reward previous shareholders and current shareholders who had not the opportunity to become shareholders of CMKX by its first CIM date of execution. Because of such, he is re-issuing shares of CIM and using as the selected company to move to the NASDAQ.
Now get this, we are still not done with accessing value. Analyze what is transpiring to place actual value in CMKX to further entice investors to take a position in CMKX if what was discussed above was not enough.
To Determine a Minimum CMKX Valuation for the Tender Offer
It has been now determined that we actually picked up two thirds of the piece of land that was originally thought to have been DeBeers and was that piece of land/kimberlite that Dr. Hutchison valued at $40 to $80 billion.
Let s take the low side to determine fundamental valuation. Two thirds of $40 billion is about $26 billion. I will use that amount x 2 as the amount as income because of what many will soon discover is that we have far more resources and locations that would allow that to be used as a minimum. This figure of $52 billion would definitely cover above and beyond any expenses. Again, I think such would be revealed soon to show how this figure is still being conservative.
From the above example we guesstimated that the OS for CMKX was no higher than 40 billion so we will us the same figure here. Please observe:
Income ÷ CMKX OS = EPS
52,000,000,000 ÷ 40,000,000,000 = EPS
1.30 = EPS
So giving the share holders a Tender Offer of $1.00 could be viewed as a conservative offer by Urban and CMKX, but yet still would be greatly appreciated.
** Now what if we really do have a huge abundance silver, zinc, gold, uranium, platinum, and diamonds to say the least?
** Now what if CMKX is 1 trillion shares naked shorted as anticipated?
** Now what if we do have miles and miles of kimberlite that was discovered from the aerial survey?
** Now what if they encountered an overburden that was valued at 500+ million?
** Now what if they had billions of dollars of kimberlite alone that they use to re-mineralize and sell as soil?
** Now what if one of the newly found kimberlite pipes is miles and miles long?
** Now what if this is going to be the biggest margin call in the world?
** Now what if we do have micro and macro diamonds in all of our kimberlite found?
** Now what if there really are lots of corporate investors that are about to join the party?
** Now what if there were huge zinc deposits found to be issued under the CIM shares?
** Now what if Urban have many friends and family that are long term investors in CMKX?
** Now what if Urban promised that he would take care of them and make them all millionaires?
** Now what if our claims are now up to nearly 3 million acres in the FALC region?
** Now what if all of this is the big plan Urban has to get the shorts?
** Now what if we have one pipe of kimberlite that is miles and miles long?
** Now what if we have all the money and support we need to make all of this happen?
** Now what if Urban really love the shareholders as many of us thinks?
** Now what if all above is true?
As I stated earlier in this post, please consider these thoughts that you have read as theory until proven as facts from Urban and CMKX. The above will only become official only when Urban and CMKX make such official. Until then, these are only my thoughts. It is my opinion that CMKX will make many of us prosperous!
Sterling
Posted by: xyz1002
In reply to: None Date:6/27/2007 2:42:09 PM
Post #of 2304
HALL OF FAME SHELL and REVERSE MERGER RUNS: this wild ride should end soon and the fate decided by next week. With all the unknowns, it's still worth the risk, me think. GLTA
LFZA(USSE) - ran from .0002 to .84 (420,000%)
AMRP - ran from 0.03 to $50 (160,000%)
CYBR - ran from 0.001 to 0.50 ( 50,000%)
DEXTQ - ran from 0.0005 to 0.21( 42,000%)
SPEA - ran from .10 to 30.60 ( 31,000%)
VQPI - ran from 0.006 to 1.50 ( 25,000%)
USAC - ran from 0.0002 to 0.049( 25,000%)
FCNK - ran from .02 to 3.50 ( 17,000%)
VIPM - ran from 0.0001 to 0.015( 15,000%)
LFWK - ran from 0.0015 to 0.20 ( 13,000%)
NXCN(CYKE) - ran from 0.01 to 1.30 ( 13,000%)
HCOM - ran from 0.001 to 0.10 (9,900%)
VLNT - ran from 0.0001 to 0.009 (8,900%)
CSHD(FHAL) - ran from .05 to 4.00(8,000%)
PRRY(ABDL) - ran from .02 to 1.60( 7,900%)
PGNT- ran from .3 to 17.00(6,000%)
LRSY - ran from 0.025 to 1.50(5,900%)
PLSO - ran from .0005 to 0.03(5,900%)
TMXU - ran from .0007 to 0.04(5,600%)
CFUL(CNDO) - ran from .073 to $4.19(5,600%)
GWRX - ran from 0.01 to 0.475 (4,700%)
UMCC - ran from 0.003 to 0.14(4,600%)
MXDY(2003) - ran from 0.01 to 0.42(4,100%)
RBID - ran from 0.001 to 0.04 (3,900%)
BUIG - ran from 0.0015 to 0.05(3,200%)
TOCK - ran from 0.011 to 0.35 (3,100%)
PGNF - ran from 0.002 to 0.065(3,100%)
FCRZ - ran from 0.003 to 0.095(3,100%)
WPRO - ran from 0.003 to 0.085(2,700%)
DGIF(TDRPQ) - ran from 0.06 to 1.70(2,700%)
RTGV - ran from 0.005 to 0.12(2,300%)
BUNZQ - ran from 0.005 to 0.12(2,300%)
NVBF(NVAO) - ran from 0.25 to 6.00 ( 2,300%)
NNRF(SFDE) - ran from 0.003 to 0.07 ( 2,200%)
FCCN - ran from 0.003 to 0.065 ( 2,100%)
SSTP - ran from 0.017 to 0.38 ( 2,100%)
LNBO - ran from 0.005 to 0.09 ( 1,700%)
MNEI - ran from 0.001 to 0.017 ( 1,600%)
CSBR - ran from 0.05 to 0.80 ( 1,500%)
TVCE - ran from 0.0002 to 0.0028 ( 1,300%)
PPXP(SFPH) - ran from 0.70 to 10.00 ( 1,300%)
RGNO(FCNK) - ran from 0.02 to 0.25 ( 1,200%)
EPMO - ran from 0.008 to 0.10 (1,200%)
OCRI - ran from 0.001 to 0.013 (1,200%)
ATGR(ATEG) - ran from 0.004 to 0.058 (1,200%)
VIVI(AXGI) - ran from 0.002 to 0.028 ( 1,100%)
SCYA - ran from 0.001 to 0.011( 1,000%)
DPDW(MQPH) - ran from .10 to.85 ( 800%)
IOGH - ran from 0.015 to 0.13 (800%)
PRPM(JLNY) - ran from .01-.08( 700%)
ECSI(AVST) - ran from 0.0025 to 0.02 ( 700%)
TLBT(TCHL) - ran from 0.015 to 0.12 ( 700%)
PASW - ran from 0.30-2.00 (600%)
COBN - ran from 0.007 to 0.04 ( 500%)
Ex-Date, Record Date etc
Posted by: Art2Gecko
In reply to: Going_long_4_MFYS who wrote msg# 1397
Date:6/8/2007 1:43:45 PM
Post #of 1426
Some reading for your broker.
A few very relevant terms:
Ex-Date
Definition 1
For stock splits, the date that the share price changes to reflect the split.
Definition 2
For dividends, the first day of the ex-dividend period. The ex-date was created to allow all pending transactions to be completed before the record date. If an investor does not own the stock before the ex-date, he or she will be ineligible for the dividend payout. Further, for all pending transactions that have not been completed by the ex-date, the exchanges automatically reduce the price of the stock by the amount of the dividend. This is done because a dividend payout automatically reduces the value of the company (it comes from the company's cash reserves), and the investor would have to absorb that reduction in value (because neither the buyer nor the seller are eligible for the dividend). Also called ex-dividend date.
http://www.investorwords.com/1817/ex_date.html
Record Date
Date set by the issuing in order to be eligible to receive a declared dividend or capital gains distribution. The date is also used by the NASD to set the ex-dividend date. Also called date of record.
http://www.investorwords.com/4095/record_date.html
Payment Date
The date on which a dividend, mutual fund distribution, or bond interest payment is made or scheduled to be made. Also called distribution date.
http://www.investorwords.com/3635/payment_date.html
Due Bills
A printed statement serving as evidence of the transfer of a security from the seller to the buyer. The statement details the breakdown of the amount owed by the buyer to the seller, such as security cost, dividends, interest, and any other charges.
http://www.investorwords.com/5528/due_bill.html
Rules from the NASD http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_003997.pdf
Posted by: penny_ta
In reply to: None Date:4/17/2007 2:23:58 AM
Post #of 1167
** What makes an attractive Shell for Reverse Merger:
Posted Originally by Stock_Lobster on April 14, 2007, here is a complete repost:
http://www.investorshub.com/boards/read_msg.asp?message_id=18776962
"Here's what I have been looking for when taking a position in a shell.
Fwiw, I've been backing off most plays posted heavily on Ihub. They're good for momentum runs, but so far, it doesn't seem clear that shells with a big following and hundreds of posts are any closer to a RM than one none of us have heard of before...a few times perhaps, but not to the degree investors might think.
Instead, I've decided to put myself in the state of mind of someone looking to purchase a shell. In this case there are a couple of things I think I'd be looking for:
1) Filing OTCBB dormant shell. This, obviously, is the holy grail. A Jr NASD listing right off the bat. However, these are far less common than pinksheet shells, and trade at a premium.
After watching EXEG and GTRY, I endorse Atout's decision to only take positions in reporting OTCBB shells, as their very scarcity makes them more likely to RM sooner rather than later. However, there is a PPS premium associated, and some penny traders shy away from that cost.
2) Share structure and low OS: This seems to be broad category, but when I get closer to the subject, I get a little pickier.
A 30MM OS may be small for a stock we trade in pennies, but not for a shell, imho. From what I've seen, some of the chinese firms buying shells (and those seem to be the main buyers right now) seem to favor a very small OS. Perhaps that's because they have aspirations to higher exchanges, but it's what I've noticed. So, imo, a 30MM OS stock still isn't immune from a possible post RM reverse split, which is the biggest threat to any shell trader.
Therefore, I'm focusing on shells with an OS of 10MM or less. Under 5MM ideal, imho. Very small could be good, but only if the shares can be acquired through a tender offer.
Of course too small an OS, and there is no liquidity. I imagine this kind of OS would force a FS post RM. It might also be seen by some as a disadvantage. From what I've read, there are some RM attorneys who argue that the attraction of purchasing a shell includes acquiring an exisiting shareholder base. So, there is an ideal OS which includes an existing shareholder base, but not so large to risk a reverse split.
But bottom line, it's all about the shell's market cap.
3) Large insider holdings. As a shell buyer, I wouldn't want to be chasing shares in the open market. I would want to submit a tender offer and acquire the majority interest in a company with one transaction. So a company where insiders are holding 60% or more of the OS seems more attractive, imo.
4) Clean. This is an obvious one. Up to date on filings and no lingering loose ends. So many of the stocks we trade are post bankruptcy, but not all. A few went dormant before they had to declare chapter 11 or 7. Again, I look at the history of filings, as I would a credit report. A few companies never had a late filing, and chose to file a 15-12G before they were forced out of business. They did not persist in a state of denial about their business prospects, but rather winterized the house and locked the doors before they were evicted, so to speak. As a result, their balance sheets are pretty favorable, and they didn't dilute heavily into the last desperate year, attempting to stave off the inevitable. There are also no toxic pipe financers in their background, waiting to create trouble. When you check their state's SOS, they are not revoked, but current and dormant and when I doasearch on the CEO and directors, I don't find scandals and allegations of corruption. Ideally, the company was never a previous RM, but a 'virgin shell..but that's maybe asking too much.
Sadly, a few owners I've spoken to want to market their shells, but they were left broke after the bankruptcy, and they don't have the funds to catch up with the filings. They are delinquent in corporate taxes, and with each year, their situation deteriorates. This is another reason to locate companies who went dormant before their back was to the wall. It takes money to clean up the house to attract buyers.
Companies that fit this criteria are my new favorites, when I can find them. I'm not saying the other shells don't run, because they do. I'm just establishing a new standard for my own buying.
5) 15-12G filings. Alot of people jump on a stock the minute they file a 15-12G, but why? In my mind, those companies are just begining the process of shopping their shell, if they're even thinking in that direction.
Instead, I'm looking at 15-12G filers from a few years back. The wheels of negotiation grind very slowly, so I imagine a shell could be in play for several years before the final paperwork is filed.
6) Accessible owners. I need to know that the board of directors, as last identified in filings, is still accessible by telephone or mail. After all, if I can't reach them, how could an interesed buyer contact them? Too mystery stocks, which I call "zombies" floating around the market.
7) Interest or part ownership by a recognized RM attorney. Obviously, this is a biggie. A 13-G filed by a well known RM partner is a very good sign that the shell has been vetted by someone who knows the business, and is now an interested party trying to shop it.
However, a canny group of owners, who include attorneys, can also be good. It's not always about what is the absolute best shell, but often about the desire and effort to market the shell. I have to imagine that a shell with problems which is owned by an aggressive owner who is often a participant at PIPE financing events and other places where buyers and sellers meet, stands a much better chance of being acquired than one owned by clean credit boyscouts in Maine who never let their desire to sell be known.
Finally, before I forget, there's the issue of trading activity in a shell stock before a RM partner is found. There seem to be two points of view on this.
Some RM attorneys recommend to their clients that there be little to no trading in their target shell before a RM is proposed. Their philosophy is that the activity level and PPS of the stock should establish itself slowly, post merger, through a growing corporate IR campaign.
But, on the other hand, I've had the opportunity to speak at some length with a PIPE financer/RM attorney, who candidly told me that sometimes a firm will deliberately 'run' a shell they own, to help create interest in the shell. I guess this would fall into the category of those who feel that an existing shareholder base makes a shell more attractive. When I look at the charts of famous RMs like LFZA or PKTO, there were regular spurts of activity for months, sometimes years, prior to the merger. So, that definitely adds weight to the argument that we should be tracking shells that seem to have regular runs and spurts of activity and accumulation.
He also mentioned that the owners or attorneys will also use this activity to help raise some funds to apply towards merger costs.
Is there dilution going on during these runs? We didn't get that far, but as I've watched many of these shells trade, a few seem to have alot of sellers show up suddenly. It might well be pre bankruptcy shareholders taking advantage of the liquidity to get out of their stuckholder positions, or it could be dilution. This might be a reason to favor shells with a small AS, preferably close to maxed out. I'll admit I've grown a little cynical about this whole process, of course.
Naturally, we might be getting a skewed impression on Ihub, as a couple of the shells which have been actively marketed here, may have had too many interested parties working overtime to make the shell sexy, imho. We don't really get to see the clean 'boyscout' owned shells RM too often, except when they show up on our scanners +5000% overnight.
Of course, I'm not knocking big board shell plays, as that is part of the reality of this market. But for some of those stocks, the best part of the run generally seems to take place before the RM is actually consummated. Too many suffer dilution and/or a RS as soon as the exchange of owners takes place, whereas less publicized plays like EXEG have climbed steadily, 400% or more, post RM. WITM, which had a small RS post merger, is now +300% in a little more than a month, but most traders overlooked it. GTRY is holding 100% post announcement gains, and seems set for a steady climb as well.
So I guess it all depends on whether a trader is interested in a true RM play, or a low float/momentum play to be traded mostly, not held. It's not always obvious at first glance which is which.
http://www.investorshub.com/boards/read_msg.asp?message_id=18839421
From Hdogtx's PennyBuster Board
Rules of the Road for the OTCBB & Pinks:
1). Greed kills, and pigs get slaughtered.
Greed is unrecognizable until 'after the fact', which is usually too late. It generally comes in the form of buying too much, too soon, and especially, of only one stock. This is why diverification is so valuable. It prevents you from taking too much loss in any one issue, in the event your choice becomes ugly. Diversification also benefits you by 'adding to the excitement' of stock investing/trading.
One advised way to avoid the trappings of greed is to practice moderation. When you see an stock you like, only buy a 'starter' position. This will automatically cause you to research deeper. If you continue to like what you learn, add to your position accordingly. Moderation is key.
2). Seldom is anything as it appears.
If everything were as it appears, EVERYONE would make money in the stock market! Unfortunately......NOT!
The old saying is, "The truth always hurts", which is why finding it in the stock market, is so hard to do. Few companies could survive if 100% of the truth were known.
3). If it sounds too good to be true, it usually is.
The better it 'sounds', the more likely you will lose money. The only times it will come even close to being 'too good to be true' is when you have stumbled across a hidden gem that virtually almost no one else has, and this would be because the market's attention has drifted away from that sector/industry, causing the stock to get 'beaten down' from loss/lack of interest. Never buy on what 'sounds' good, buy only what can be proven to be good, and yes, there are many excellent hidden gems, just waiting to be rediscovered and have life breathed back into them.
Ask questions if you are not sure.
Though no one can 'hold your hand' thru all your investments, many are willing to help 'walk you thru them', atleast to some extent. Ever since a boy, after getting a boot up my butt, I learned it is better to ask a stupid question, than to make a stupid mistake! The one might cost a little pride, while the other can cost thousands of $$. Let pride go before destruction.
and 5). A profit NOT gained, hurts less than losses SUSTAINED!
Lowman has a great board with some very useful info on it. Here is the link for some good reads.
http://www.investorshub.com/boards/board.asp?board_id=7489
nice info...thanks for this board! RJ
Great idea for a board. Good stuff, will check back often.
Posted by: EdFrankie
In reply to: MWM who wrote msg# 28115 Date:4/20/2007 3:52:20 PM
Post #of 28842
OK street thug! When are you and your crew going to change colors? Until you toss the pink, you're going to continue to get your ass kicked by everyone in the hood. And from what I heard, even some old lady pegged you in the back of the head with a half empty jar of Ragu
Chart lessons by Stock Analyzer
1. Moving Averages http://www.investorshub.com/boards/read_msg.asp?message_id=17587817
2. Moving Averages 2 http://www.investorshub.com/boards/read_msg.asp?message_id=17587835
3. MACD indicator http://www.investorshub.com/boards/read_msg.asp?message_id=17587768
4. Williams %R indicator http://www.investorshub.com/boards/read_msg.asp?message_id=17587714
5. RSI indicator http://www.investorshub.com/boards/read_msg.asp?message_id=17587680
6. ADX/DMI indicators http://www.investorshub.com/boards/read_msg.asp?message_id=17587655
7. Aroon indicator http://www.investorshub.com/boards/read_msg.asp?message_id=17587692
8. Finding Resistance http://www.investorshub.com/boards/read_msg.asp?message_id=17587755
9. Finding Support http://www.investorshub.com/boards/read_msg.asp?message_id=17587741
10. Stock_Analyzers Entry and Exit strategy http://www.investorshub.com/boards/read_msg.asp?message_id=17587731
11. What is a cup and handle: http://www.investorshub.com/boards/read_msg.asp?message_id=18255652
12. Parabolic SAR by 4Godnwv http://www.investorshub.com/boards/read_msg.asp?message_id=19208309
13. Moving Averages by 4Godnwv http://www.investorshub.com/boards/read_msg.asp?message_id=19208263
14. Bollinger Bands by 4Godnwv: http://www.investorshub.com/boards/read_msg.asp?message_id=19208548
Lesson MACD by StockAnalyzer
http://www.investorshub.com/boards/read_msg.asp?message_id=17587768
The Moving Average Convergence Divergence (MACD) is one of the simplest and most reliable indicators available. MACD uses moving averages, which are lagging indicators, to include some trend-following characteristics. Usually, a 9-day EMA of MACD is plotted along side to act as a trigger line. A bullish crossover occurs when MACD moves above its 9-day EMA and a bearish crossover occurs when MACD moves below its 9-day EMA
MACD measures the difference between two moving averages. A positive MACD indicates that the 9 or 12-day EMA is trading above the 26-day EMA. A negative MACD indicates that the 9 or 12-day EMA is trading below the 26-day EMA. If MACD is positive and rising, then the gap between the 9 or 12-day EMA and the 26-day EMA is widening. This indicates that the rate-of-change of the faster moving average is higher than the rate-of-change for the slower moving average. Positive momentum is increasing and this would be considered bullish. If MACD is negative and declining further, then the negative gap between the faster moving average (green) and the slower moving average (blue) is expanding. Downward momentum is accelerating and this would be considered bearish. MACD centerline crossovers occur when the faster moving average crosses the slower moving average
MACD generates bullish signals from three main sources:
Positive divergence
Bullish moving average crossover
Bullish centerline crossover
A positive divergence occurs when MACD begins to advance and the security is still in a downtrend and makes a lower reaction low. MACD can either form as a series of higher lows or a second low that is higher than the previous low. Positive divergences are probably the least common of the three signals, but are usually the most reliable and lead to the biggest moves.
Example: Everytime the MACD started to advance the price went up
A bullish moving average crossover occurs when MACD moves above its 9-day EMA or trigger line. Bullish moving average crossovers are probably the most common signals and as such are the least reliable. If not used in conjunction with other technical analysis tools, these crossovers can lead to whipsaws and many false signals. Moving average crossovers are sometimes used to confirm a positive divergence. The second low or higher low of a positive divergence can be considered valid when it is followed by a bullish moving average crossover.
Sometimes it is prudent to apply a price filter to the moving average crossover in order to ensure that it will hold. An example of a price filter would be to buy if MACD breaks above the 9-day EMA and remains above for three days. The buy signal would then commence at the end of the third day.
Example of MACD crossing the EMA lines here Each time the stock rose in a uptrend
A bullish centerline crossover occurs when MACD moves above the zero line and into positive territory. This is a clear indication that momentum has changed from negative to positive, or from bearish to bullish. After a positive divergence and bullish moving average crossover, the centerline crossover can act as a confirmation signal. Of the three signals, moving average crossover are probably the second most common signals.
Example of MACD crossing 0 line and a MACD crossover + cross 0 line
The opposite is in affect for Bearish signals or sell signals.
Bearish moving average crossover
The most common signal for MACD is the moving average crossover. A bearish moving average crossover occurs when MACD declines below its 9-day EMA. Not only are these signals the most common, but they also produce the most false signals. As such, moving average crossovers should be confirmed with other signals to avoid whipsaws and false readings
Also if the MACD has not crossed the EMA and is going down you can also assume that the MACD crossing the 0 line and going below is also bearish.
Thanks to stockcharts.com
SA
Stocks That Make Kool-Aid Status: How Popular is my Stock?
By Bill Panetta
President of Breakout Trading
www.breakoutrading.net
http://www.investorshub.com/boards/read_msg.asp?message_id=15914506&txt2find=usxp+
Posted by: Bill Panetta
In reply to: None
Date:4/23/2007 1:12:54 PM
Post #of 2451
(UPDATED) Penny Stock Market Makers Who Are the Players in this Game
By Bill Panetta
Let Me Start off by saying this: Level 2 Does not have the same effect like it did 5 years ago except for OTCBB Stocks & Pink Sheet Stocks. What Do I mean By This? NASDAQ is all chart plays, level 2 has no meaning as it once did for NASDAQ Stocks, and too many games can be played now on level 2. Simply put if you don't know how to read the charts you will get killed on NASDAQ Stocks.
With all the changes on Level 2 Traders have been forced to learn TA, You could had a made a killing with level 2 before 2001 with out TA; I have witnesses that have proven this.
And when I make this comment I am talking about regular trading hours, after hour's different story. Bottom Line Level 2 does not have the same effect on NASDAQ Stocks that it did 5 years ago because of the New Super Soes Trading System being implemented in 2001 and along with 1 cent spreads, it was the worst thing NASDAQ ever did for traders IMO. The Traders from 5 yrs ago know what I am talking about.
Let's talk about the 2 exchanges where Level 2 has not changed and having level 2 is really important to your trading. I am talking about The OTCBB & PINKSHEET Markets.
If you learn how to read into Level 2 on the OTCBB & PINK SHEETS it will really enhance your trading. Let's break down the Market Markets.
There are 4 categories of Market Makers let's start by talking about the first one.
Retail Market Makers:
These are the market makers from very popular brokerage firms. They handle a lot of the order flow for small retail investors.
NITE: NITE
UBSS: Schwab
SBSH: Citibank
ETRD: ETRADE
BOFA: Bank of America
Second Category: This is the list that you really have to master because these are the MARKET MAKERS that can kill a stock in a hurry when they are the sitting on right side of the box on Level 2.
HDSN: killed CKYS single-handedly
VFIN:
CGFL: new kid on the block for sub dilution
RBCM: Old CLYP. Has killed many sub penny stocks in the past to no-bid.
FANC: used to be a heavy S-8 seller. May show up once in a great while.
SSGI: aggressive on sub penny stocks
Third category: There are lot market makers in this category so I will break it down to who are the most important: These are some of the more friendlier market makers on the street.
DOMS: one of my favorites
MAXM:
VERT:
HILL:
SALI: can be a seller at times
JEFF:
FRAN: very friendly
ABLE:
QUIN: haven't seen him around much lately
VNDM:
SEAB:
MURF: getting active lately
STGI: getting active lately
VERT:
WDCO: can be a seller at times
PERT:
NIII:
BEST:
GNLN: nice to see him back again
EFGI: can be a seller at times
Category 4: ECN MARKET MAKERS: Electronic Routes
these market makers are only used on OTC BB stocks. They do not work for pink sheet market.
ARCA: used a lot by promoters to sell stock
TRAC: rarely used any more taken over by EDGX
EDGX: new kid on the block
There are probably a few market makers that I left out or there will a few new market makers that show but for the most part these are the major players. Good luck hopes this helps.
http://www.investorshub.com/boards/read_msg.asp?message_id=19035608
To: Wayne Rumball who wrote (0) 3/25/2000 10:29:00 PM
From: Wayne Rumball 6 Recommendations Read Replies (4) of 268
When I created this thread perhaps I mistakenly assumed that everyone that might be interested in it knew my market philosphy already.
It's quite simple.
All stocks are shit
All stocks are shit
All stocks are shit
The sooner you realise this the sooner you will be able to trade properly. Got a losing position? That stock was a piece of shit. Dump it.
Got a winning position? Amazing such a piece of shit could run, sell it.
The market is all about buying and selling. If you aren't selling you aren't making money.
http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13282288
Posted by: lancebps
In reply to: razal who wrote msg# 12974 Date:12/2/2003 8:16:09 PM
Post #12979 of 190224
those are his strange words for just position trading
a stock and taking profits along the way to either get back your capital or lower your cost average...
example
IDNW
you buy 100,000 shares at .05..
you sell 25k shares at .06 on the first 20 percent move
now you have spent 5,000 dollars...
you have got back 1500 dollars
the 75,000 you have left has now cost you 3500 dollars...
than on the next 20 percent which happened to be this mornings gap you sell 25,000 at .07..
now you got 1750 dollars for that
now you have 50,000 shares left..
you spent 5k ,you got back 3250..
so your capital out is 1750 dollars for 50,000
which puts your cost now under.04...
so now becomes your options ,in an ideal stock move you wait for another move of 20 percent to sell another 25k,but you can change your target to suit you,me personally i like to sell enough from this spot to get the capital back and take a little profit and leave something left to go the distance in case the stock goes and i dont have to pay attention..
in this case i sold later in the day 40k at .07
and now have all my capital back from the 5k investment,
plus 1000 of profits and 10,000 shares left that i dont have to watch and can pay attention to other stocks without a worry in the world of the IDNW shares..
this is my definition of position trading,and only something i will do in a good market..
the goal is to make 500-1000 dollars profit on the trade and
have 10-15 percent of shares left in case a stock goes
from .10 to over 1.00 like the 200 that did in 2000....
http://www.investorshub.com/boards/read_msg.asp?message_id=1856749
By brikk:
OT: Weekly Thoughts: Learn How to Play the Game: Invest Wisely and Trade Smartly
The savvy long-term investors never chase stocks up. For the most part that is
momentum players and daytraders where most of it or what follows is dumb
money. Instead the long-term investors use a couple of simple strategies in
order to position themselves. One is to find a stock no one immediately sees
has huge potential and accumulate. Long-term investors are not interested in
trading against the public mind or the dumb money. That's where the majority
of the money can be made but even more can be made if the base of a stock is
held extremely strong by investors. However the second is not to doubt the
research which is the underlying basis for going long and holding.
More and more investors are winning the game nowadays despite all bashers that
float through the Internet that has become part of the game. Floor traders of
market makers often watch CNBC, news wires and bulletin boards in order to
follow the market during trading session. OTC BB market makers (MMs) don't use
fundamental and technical analysis. However, what they do realize is a lot of
dumb money does use this newest nitch charting or TA (Technical Analysis) to
run a stock either up or down. To the MMs this is like taking candy from a
baby. Simply they will paint the tape and use whatever tactic to affect the
charting bands. Thus the public and dumb money they will have eating out of
their hands. Effectively the MMs can show a strong stock growing weak by
manipulating the close price in order to generate selling volume, delaying
trading time to manipulate trading activities, or even stalling the ask
without honoring orders to hold a stock price.
MMs follow a simple code of business when making a market in a stock
especially an OTC BB. That is the level that stocks will seek that yields the
most volume. Now this is very important because they make money on the volume
buying at the bid and selling at the ask. In other words, by making the market
they are buying low and selling high. Now smart money adheres to that rule, so
do all the market makers. They could careless whether the stock is at $83 or
at $0.23. All they care about is the action thus being able to sell stock at
the offer (The high) and buy stock at the bid (The low). To increase their
profitability, they make the spread as great as possible on as many shares as
they can especially if the volume falls off.
When they have mostly all "buy" orders, that's not the price that's going to
yield the most volume. They need both buy and sells to get the maximum action.
Remember, MMs play the volume. If the volume decreases and there are mostly
Buys that become a one way volume, Buy volume. So what they do is let the
stock run up to a price where it runs out of steam. They fill all the buy
orders there that they can and then comes the pullback one way or another
naturally or induced. During the pull back they can buy tons of shares and
flip them to those averaging down or trying to catch the bounce. At some
price, the stock will be relatively stable and yield the most volume. Now that
is the average price you will see
The average price is the point where a stock seeks a level where MMs can
profit on the most volume. So during the day that is the price that MMs and
momentum/day traders want to see the stock at. Why? Because they know the
public and dumb money was chasing the price thing up. Most of the time, the
MMs love a flurry of Market Orders which is a dead sign of an artificial run
or momentum. Merely it is money in the bank for them. Most get hung in a
momentum or day trade or by the tactics of Market makers, who are in the
business to screw the public every chance they get and the NASD is not going
to do anything about it. They are merely making the market liquid is there
reasoning.
The market makers have created an added complication to the OTCBB's chaos of
the already volatile intra-day price movements created by dumb money, momentum
and day-traders. MMs can not relate to long-term holders in the OTC BB. That
makes absolutely no sense what so ever. They feel a large percentage of trades
in the OTC BB market consist of short-term or day-trades, MMs merely view the
barrage of buy and sell orders as relatively neutral to the market. How they
figure it is when the average dumb money buys shares in a company, the MMs
feel or rather know with some certainty it is very likely that dumb money will
want to sell back those shares relatively quick on the slightest drop.
Now somewhat comfortable with this logic the MMs merely short sells into the
buying and attempts to take the stock down in an effort to "shake out" the
weak. Since it is tough to know for sure whether a move is the beginning of a
trend, or a routine shake out, this type of deception works quite well for the
MMs. What the long-termers do to a stock is surprise the MMs because instead
of falling the shorting has no effect and the price goes up. Now that puts the
MM at selling low through shorting and thus having to buy high in order to
cover.
Boy, when this happens, the MMs are not very happy campers. The investors and
traders are supposed to be doing that no them. Now it becomes time to pull out
every trick and tactic in the book in order to attempt to get a Bear Raid at
every dollar mark or percent from where the stock started. Could be a penny in
smaller priced securities? What MMs do is give you a chance to make a small
amount of money for your momentum and day trading style by shorting it at
these levels and trying to get a bear raid each time. Each failure is
compounding the MMs short position so they let it go to the next level. Now
come more deliberate tactics MMs use to coerce Bear Raid or panic selling.
Once the MM is caught short and the strength of the buy is overpowering the MM
will want to cover his short position. So the MMs call up one of his friendly
MMs and says some like "the weather is sure rough today." The MM along with
the other "friendly MM initiates a down tick about the same time. Now this can
also be done with a certain amount of shares such as an infamous 100 shares
flag. This down tick gives the illusion of weakness designed to hopefully
begin the bear raid of selling. The fickle, fearful, day trader, momentum and
short term begin to sell out allowing the MM to cover his short position at
lower prices. They will move it down quickly to get it to a price of least
financial damage. Problem they have is long-term investors in the OTC BB. They
start accumulating and buying comes flying in when they take it too far thus
the MMs took it to the point of volume again and not only investors the other
MMs step in the make money on the spread.
Alas the poor MM does not get to cover. Now comes various tactics like
stalling, boxing, or even locking the Bid and Ask for a while.
Of course, MMs aggressively deny any sort of collusion designed to fix quotes
or spreads, but a recent SEC investigation tells another story.
MMs have a vast resource of tactics and it would take probably more than my
lifetime to figure them all out.
So how do investors somehow manage to overcome the obvious deception in OTCBB
arena? One answer is indirection trading style by going long which the MMs do
not expect. In the war between investors and public companies on the OTC BB vs
the MMs, if the MMs have all the advantages due to position or other factors,
direct confrontation such as momentum or day trading hitting the stock is a
definite death sentence.
However, an indirect approach tends to weaken the path of least resistance
before slowly overcoming it. The most effective way is long-term investors
slowly accumulating and holding thus drawing the MMs out of its defenses
making them as naked as their short position. This is war so this slow
accumulation and holding for the long term easily achieves the desired effect
to force MMs to cover and knock off the tactics or bury themselves deeper.
The MMs when caught will especially use every trick and tactic in the book to
get a Bear Raid thus playing on the individual fear of most people. The MMs
feel they have information and position advantages over the investors as long
as the holding of the stock is in weak hands or short term holders. Since they
are OTC BB MMs who believe all OTCBB companies are not worth investing and
management is ineffective regardless what is happening within the company.
Furthermore, MMs know they are in the position to impose a great deal of
influence in OTC BB stocks trading when it suits their needs.
This inherent power of position enables the MMs to move the markets at any
time up or down. As a result, the only way to draw them out of their favorable
position is going long. Now this does not mean just any company but to
effectively nail the MMs, Longs must find the great company on the floor and
accumulate long before the MM tactics and games begin.
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Just wanted to start a board to collect great posts from smart investors out there. You know the ones you think "man got to save that one in my favorites but somehow lose it". Well this board is here to post primarily that and we get to keep a nice archive of everything. Just when you have had a bad investing day, week, month, heck even year, just sit back and catch your bearings and read some smart ways to invest.
Give credit where due on the references!
Also if you know a great book to read thats a must for any type of trading go ahead and post the info for the book ie ISBN #, Title, Author
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