Veteran, Very Conservative
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Gold and how it’s form and how it accumulated
Current thinking is that gold is created when stars explode. Stars are initially composed of the gaseous element hydrogen. This 'burns' in a nuclear reaction (fusion) to produce helium. When all the hydrogen is used up, the helium burns to produce carbon, which in turn burns to produce heavier elements. This process continues until the core of the star becomes iron, compressed to an incredible density and at an enormously high temperature. Since iron is unable to burn in the same way, the nuclear process stops and the star collapses inwards. This causes massive shockwaves which literally rip the star apart. As the shockwave travels through the upper layers of the star, elements are flung together in all sorts of haphazard arrangements and some combine to produce gold and other heavy elements. Then the star explodes, shooting off most of its mass into space. A small remnant star is left behind. This explosion is known as a supernova - it is the ultimate fate of all large stars. Supernovas are so bright that they can briefly outshine all the other stars in the galaxy put together.
Gradually over the aeons, all the debris from one such supernova explosion gathered together to form our solar system. The heavier elements clumped together to form the inner planets while the lighter elements formed the sun at the centre and the gas giant planets further out. Gold is distributed in microscopic quantities through the earth, both on land and in the sea. It is there in such tiny concentrations that it is not worth extracting.
For gold to be present in sufficient quantities for mining, some sort of mechanism is needed to concentrate the gold. This is achieved by flows of hot water, which often occur deep underground, near volcanic vents and along tectonic plate boundaries. If the water is hot enough and has just the right chemical constituents, it will dissolve the gold out of the surrounding bedrock. As the water flows it carries the gold along. Eventually at some point along the water flow, the conditions change: perhaps the water cools below some critical temperature. The cooler water is now not able to hold the gold in solution, so it stops being dissolved and reverts to solid form: it 'precipitates'. Since the point at which this occurs is fixed, the gold concentration builds up at this point. This process might take 50 - 100,000 years. Eventually a vein of gold is formed. This may be pure or it may be mixed with other precious metals - silver is very common.
My point in posting the maps was to show gold mines in Ontario. Red Lake mining district is just about 100 miles away and look at the activity there. The topography of Queen Alex is typical of that at Red Lake.
The first Picture I circled all of the active gold mines in Ontario I had to draw in the Queen Alexandra because it is not an active mine currently.
The second photo shows the Mining operations in the Red Lake district and quantities of gold being mined from each.
Draw your own conclusions from what I present.
My opinion exactly, if edwin maintains stability of the share structure we can get CNEX to the pennies again.
Thank you Enzo, I think in your case that would be a wise decision.
Hardwood, I bow to your expertise amd experience in PUMP & DUMPS and MOMO PLAYS
Enzo, you can short CNEX. You say the PPS is going back down, sell all your shares monday and buy them back at a lower price when it gets back down to where you say it will. Then you ride it back up and sell again and so on and so forth. Good luck.
You are correct in your math but you fail to take in consideration that when CNEX hit 02 last time it was speculation. Now we have preliminary assay results confirming gold and we are going further now with a more detailed survey of the mining area. Gold prices keep going up which means by the time gold is extracted from Queen Alexandra we could see $1300-$1500 per oz on the market. When you buy a stock you are not buying for todays market value rather you are buying shares for their future value.
The next step is to hire a qualified person to over see the operation as it goes forward. I'm going to see what the next few weeks bring, as far as what edwin drives, I could care less.
Hardwood, you make a lot of money on the Pump and dump circuit if not pump and dumps then it's MOMO plays. I too hate pump and dumps so far we have not found any evidence that CNEX paid anyone to pump the stock just MOMO plays coming in and out, if you can show us where someone or some company was paid we would welcome that info.
I'm sorry, some people tend to place milk money in the pennystock market. This is just like blackjack, never put more on the table than you can afford to lose. A year ago what did CNEX have of any value. Pennystock companies use the AS as a check book to finance their operation.
Vantillan 25 axioms are an interesting read
INTRO
I am calling these 25 points "axioms" in that they are propositions that are not necessarily proved or demonstrated but rather are self-evident to those who trade/invest on the OTC. In other words, these truths should be taken for granted and serve as a starting point or a foundation when deducing or inferring other propositions about OTC investing. I will not seek to prove these axioms to you...they just simply ARE. An axiom appeals to no other authority for verification...it stands on its own as the truth. Therefore, with these axioms we are dealing more with beliefs and less with facts. But without fundamental beliefs, you will have nothing whereby to interpret the facts. So sit up and pay attention because the following are very important ideas that could keep you from losing your shirt and help you to win nicely at playing the OTC market.
1. The Center Stage Axiom
The longer an issue stays in the spotlight...the worse. There's always one or more good reasons as to WHY a company is trading on the OTC...especially if it is a sub-penny company. There have been many times in the past couple years I thought I had found that "true gem" that was going to be another Yahoo. I believed in it big time. I bought into it big time! But after the initial run and a dead-cat bounce or two...things began surfacing that were completely damaging to the demand for the stock. Simply put, the higher a stock climbs in the investing world, the more its rear end shows...and OTC butts ain't pretty. Are there the occasional rule breakers here? Yes (usually they are reverse merger plays). But those stocks are few and far between and they generally uplist very quickly to a higher exchange. As a general rule, the longer a company stays in the limelight, the more enemies it will attract. Bashers. Shorters. Bidwhackers. Apathy. New shares from various and sundry places (especially DILUTION and restricted shares coming off restriction). It's always a war to make the PPS (read: Price Per Share) go up on any issue. Don't stay too long at the war. Fight as long as you are advancing and retreat the moment you see the enemy reinforcements gathering. Or possibly better yet...retreat before you think you even heard the enemy reinforcements. Remember, it's not your job to make a stock PPS go up, it's your job to make your portfolio grow. OTC valor is much different than armed forces valor.
2. The Carpe Diem Axiom
Always take *some* profit when you're sitting on significant gains 50% or higher. Unless you are already independently wealthy and view OTC investing *only* as gambling for FUN (which isn't an altogether bad thing to view it as), take profit. The way to accumulate wealth playing OTC issues is to always exit too soon. Furthermore, it leaves one feeling pretty dern good when he left some on the table for the next guy and was not the chucklehead that singlehandedly killed the run. If it does make you feel good that you were the chucklehead that killed the run, shame on you. Always remember...you do not know the next time buying pressure will allow you to leak out of shares without injuring a stock and/or your portfolio! Seize the day. Seize the opportunity strong buying pressure provides.
3. The Itchy Trigger-Finger Axiom
Someone always has shares to sell to ruin a run. Read it again: Someone ALWAYS has shares to sell to ruin a run. Make this statement your computer desktop and/or screensaver. Say it to yourself ten times whenever you start your trading day. Paint it on the ceiling above your bed so it's the first thing you see in the morning. Please understand that someone owns a whole lot of whatever stock you're jazzed about at much lower average than you -- and often times they own it for NUTHIN' (i.e. compensated promoters, debtors, relatives of CEO, etc.). Also, if you think that YOU are the ONE that is holding all the shares that could potentially ruin a run...think again. Only God knows where all the shares are or will be coming from...because who knows what kind of shorts will attach themselves to your play and sell you nothing but VAPOR.
4. The Domino Effect Axiom
Almost everyone that loses money playing the OTC looks to point a finger somewhere. They want someone or some entity to blame for their loss. Forget that the CEO sold 100M shares into the open market, they'd rather lash out at the popular poster that promoted, endorsed, and otherwise "pumped" the stock. Here's what folks like that should understand...there is a domino effect of people getting screwed. Here's an illustration: the CEO legitimately plans NOT to sell shares but some emergency comes up...and believe me..."emergencies" almost always come up for these guys! Selling shares is the easiest way for him to raise the money and "After all," the CEO justifies to himself, "the reason I went public in the first place was to raise money." The problem here is that the CEO failed to tell his promoters and/or closest investors about his need to raise funds and that group of people is living under the assumption that the share structure is stable (i.e the supply will remain the same). So the CEO got screwed by somebody and had to pay up. He screws the promoters and his closest investors and they had to pay up. Now the promoters and close investors will probably screw another batch of investors. Scenarios like this have happened more times than I can count! When something goes wrong and you're holding several thousand dollars worth of stock, you're not going to be looking to inform the world about things that will negatively affect the stock's PPS! You're looking for ways to bring in buying pressure, not decrease it! Folks love pumpers/promoters when they are helping the stock they are in go up. Folks hate those same pumpers/promoters when their stock is going down. Heroes and zeroes in the microcap world are one and the same...it just depends on the day. Remember this though...if the guy at the top decides to take advantage of people...he most certainly will succeed. What you need to know is your place in the food chain. And friends, if you're a rookie to the OTC world...you are a bottom feeder that gets caught eating the crap of all the other fish in the ocean when the "Domino Effect Axiom" kicks into high gear.
5. The Vapor Shares Axiom
If you see a poster battling the idea of shorting OTC issues with determination and vigil, sit up and pay attention...that poster is either a short himself or working on behalf of the shorts. People and/or groups with the right connections can and do short OTC issues...many times they short stock into oblivion with the full approval and consent of the leadership of the company. Contrary to popular belief, many OTC CEOs don't give a flying fig newton what their stock price does...what they care about is getting their hands on YOUR MONEY. There is alot of money to be made when a stock goes up. There is even more money to be made when a stock goes down if you were selling vapor all the way down to .0001 and cover there. Microocap hedge funds exist. Microcap hedge funds manipulate stocks and steal the money of good people. Unless you are a microcap hedge fund yourself, you can almost never win a battle against a powerful microcap hedgie that is shorting the snot out of your beloved stock. Remember, this is an "axiom" that stands on its own. I will not seek to prove the validity of this point to you. You must simply either accept it or reject it.
6. The Glass-Half-Empty Axiom
Bashers on message boards are a very real force to contend with and it's not a coincidence that I've put this axiom after the "Vapor Shares Axiom." It is easier to get a person to sell a stock than it is to buy a stock...and they know this very well. If your stock's message board becomes infested with bashers...be careful! Unless you believe the company has some incredible news that may force these guys to cover or unless you know of a group with mega-bank that is going to push the stock and perhaps force a cover...be careful when playing with shorty. Many of these bashers will try and convince you that they are there out of the kindness of their heart to try and rescue other investors from the perils of a diluting CEO or worse. Nope. Their motives are to bring the PPS down down down. Bashers, in the end, are almost always right eventually because they are bashing OTC issues. They know axioms like "The Center Stage Axiom" too!!!
7. The Supply IS Demand Axiom
I have seen several runs simply because a stock has a low share structure. A low supply creates demand. Know the share structure. On plays where the TA is gagged, plan to exit within hours of entering and play the momentum only unless you have STRONG and SOLID reason to believe the stock will go up. Call transfer agents. Learn what authorized shares, outstanding shares, and float mean. The share structure is the first thing I look for when making a new investment...it should be the first thing you look for too. If a company is not willing to be transparent in this area, you can bet there's a hundred other areas they're not willing to be transparent about. I have and continue to invest in plays where the transfer agents are gagged (unable to report to you what the current share structure is) but I don't plan to stay invested for long.
8. The Don't Click The Mouse Yet Axiom
Never buy a stock at the high of day after a significant run (good rule of thumb here may be 70-80%). Wait for a pullback. And while you're waiting, do some due diligence. Check the company's filings on pinksheets.com or otcbb.com. Read a few of their PRs. Check the history of the leadership there. Call the transfer agent (T/A) and ask for the share structure. And on stocks that are pulling back, buy at the bid. Remember that it takes both bid buyers and ask buyers to make a stock PPS go up.
9. The Morning Patience Axiom
The first hour of the market is "amateur hour." With most first-hours on hot issues, it'll either be extreme bid whackage which will cause some panic selling which will create some excellent buying opportunities later in the morning OR it will be extreme ask slappage which will lead to a pullback around lunchtime. I hardly ever buy during the first hour of the trading day, and I'd venture to say 80-90% of the time that decision has paid off. I'd rather watch a few missed opportunities than be stuck in a bunch of "apparent" ones.
10. The Bruised Knee Axiom
There are too many enemies against an OTC issue's PPS going up to NEVER lose a battle. Know how to take a defeat. You lost. YOU made a mistake. Evaluate what went wrong. Evaluate why YOU lost money. It's okay to lose money occasionally but it's not okay to be just as dumb after as you were before! Think, think, THINK! Don't make the error again. Get smarter. Listen, school is expensive...tuition rates are high! If you want to make money trading the OTC you had better plan to spend the first year in school.
11. The Show-Me-The-Money Axiom
I once asked a poster that was complaining about getting lied to on a message board: "Are you stupid in any other areas?" Seriously folks, everyone on a stock message board has an agenda...including ME. Including YOU. Consider how often your posts are seasoned with fiction and/or things that you simply DO NOT KNOW TO BE CERTAIN. Consider that you have most likely served up a poo-poo platter covered thickly with powdered sugar. Trusting stock message boards for accurate due diligence is like trusting the National Enquirer for accurate UFO sightings.
12. The I'm-Rubber-And-You're-Glue Axiom
Develop thick skin if you plan to post on stock message boards much. 'Nuff said.
13. The Know-Your-Anthropology Axiom
Understand the nature of man! For this axiom, you need to be somewhat of a Christian theologian. The Bible clearly teaches us that mankind is not naturally good...he is naturally evil (Psalm 14 is a good place to start). The word Christian theologians use to describe our condition is "depravity." Because of the fall of man, we are morally corrupt in every part of our being and tend toward wickedness (i.e. greed, theft, lying). We stand in need of redemption from a Savior. So understand that you are playing amongst people (including yourself) that are not naturally good...they are naturally bad. In other words, you're playing with fire. Lies, half-truths, and misrepresentations abound in the OTC world. You better take EVERYTHING with a grain-of-salt the size of Texas. Some posters require more salt than others to digest. Be an evaluator of people. Learn how to ask the right questions. Make sure your yellow flags and red flags are ALWAYS working.
14. The Early-To-The-Party Axiom
Be willing to buy lower what you bought higher. I have often arrived to a party early. By "party" I mean a gathering of people and people's money that will result in a stock's PPS going much higher. By "early" I mean I got there before the stock was sitting at a low. I am always somewhat discouraged when a purchase I made continues to go down. But if I have done solid due diligence in the company, I often take it as an opportunity to add more shares cheaper and lower my average. In other words, don't look at your initial investment as dead money and hope that it goes back up again so you can get out. Average down, do the due, and then promote your stock to others and help jumpstart the party. Be a spark plug.
15. The Next! Axiom
Be looking to get out of an issue the moment you get in. Have an exit strategy in place. By buying a stock you are not entering into any kind of formal arrangement like matrimony. You are an investor and as such your goal is to make money. If your investment should go up within the first 20-30 minutes of purchase why is it any different taking some profit then as if it took 20-30 days for it to go up? Get in. Lock in profits. Ride freebies.
16. The Grow-Up Axiom
Somebody once said: "If somebody screws you once, shame on them. But if somebody screws you twice, shame on you." In the OTC world I would modify it a bit to say: "If somebody screws you once, shame on you. If somebody screws you twice, you really are a moron." Take responsibility for ALL your investment decisions. Almost nothing ever happens as planned or hoped here on the OTC. There are too many enemies against making a stock's PPS go up. If you're going to play the game down here...you better be ready to accept FULL and COMPLETE responsibility for EVERYTHING YOU DO IN THIS INVESTING REALM. Point the finger of blame at only one place: yourself.
17. The Ask-Yourself-Why Axiom
Understand that many of the people encouraging you to buy an issue are compensated promoters whether they disclaim it or not. Most times they do not have your best interest in mind, they have their best interest in mind cause they're sitting on a mountain of stock and can't wait to turn paper into cash. It has been said that "the man that can answer the question 'what' will always have a job but the man that can answer the question 'why' will always be his boss." Be continually evaluating EVERYTHING by asking questions that begin with "WHY."
18. The What-Was-That-Again? Axiom
Understand you are almost NEVER getting the whole story. The only way optimists will survive in the OTC is if they become compensated promoters. Pessimists can either become paid bashers or fast flippers. The OTC calls for realism. Be a realist. To be a true OTC realist you need to know and understand all that you are up against to make a stock's PPS go up.
19. The Public-Versus-Private Posts Axiom
Many of the people pumping stocks are stuck in them and want to inspire a whole new wave of bagholders to come take their place. Often times what is being said on the public message boards is completely different than what those same posters are saying behind closed doors. Realize this. Digest this. Embrace this. Don't be naive.
20. The Buy-The-Story-Not-The-Company Axiom
So you bought a stock because of a solid PR that came out. Cool. Why did you buy? Because of the story. Do you really know anything else about the company? Is it real? Do they have a big building? Do they have equipment? Are they producing? Forget all that. In many ways it is irrelevant. If you are going to invest in the OTC you had better learn to invest in STORIES. Now, ironically, one of the dictionary definitions for "story" is "a lie or fabrication." Do you really think that you are investing in the same caliber of companies on the OTC as you would on the NASDAQ or NYSE? Don't be naive! Do you think what your company outlined in that lovely PR is really going to happen? Two words for you my friend: SAFE HARBOR. In the OTC you are investing in POTENTIAL ALONE; therefore, be a discerner of the POTENTIAL OF THAT COMPANY'S STORY. What has great potential? Water to China? American Idol in a 3-D world? Gasoline replacement in a weed? Oh yeah baby! All those STORIES have great POTENTIAL. But there's a monster "IF" involved in every one of those. After some time, the reality that the "IF" is gonna stay a big "IF" sinks in and the stock PPS encounters a slow death. Sadly, some of the really real OTC companies go unnoticed because they do not have a great story with potential. The term many investors use to refer to the story is "kool aid." Does your stock have good "kool aid?" Well, does the potential of your company make you want to buy it? Does it make other want to buy it? I try to avoid investing in OTC issues that do not have good kool aid flowage or the potential for good kool aid flowage. Wow. What a concept. On the OTC sometimes you have to invest in the POTENTIAL POTENTIAL of a company. (That last sentence wasn't a misprint. Read it twice if you need to.)
21. The Don't-Gamble-Away-The-Mortgage Axiom
You *should* expect to lose your entire investment. You *should* expect to lose more money than you make playing OTC issues until you wise up, learn these axioms, and behave according to them. If you are playing the OTC to try and make some quick money to pay off a debt, good luck with that. Unless you are an experienced OTC Jedi Master that does this for a living (and I'm by no means saying that I am one or that I have arrived!), you better ONLY USE MONEY YOU CAN AFFORD TO LOSE.
22. The Dingleberry Axiom
This is the term I save for bidwhackers. Realize that the OTC market is unfortunately full of people that don't understand the concept of selling at the offer. They are more than happy to whack out the bids on an issue for their lunch money. Realize that usually the longer an issue stays in the spotlight, the more problem it is gonna have with dingleberries, er, whackers.
23. The Bid And Offer Axiom
Level 2 is often the truest of truths in the OTC. It tells a very accurate story. If you cannot afford to spend your day glued to L2 watching the issues you're trading...you shouldn't expect winning trades on the OTC. I simply cannot stress enough the importance of having LIVE Level 2 and understanding it. Spend some time paper trading which watching L2s. Practice. Practice. Learn. You just gotta understand what the Level 2s are telling you. Some of my friends would also come in here at this point and say it is not only L2 it is also the chart. I would argue that it is MORE L2 and LESS the chart. By understanding and watching L2 I feel like I can identify dilution much faster than by simply looking at a chart and all its indicators.
24. The CEO Is A Scumbag Axiom
Now I know we're all quick to defend our favorite CEO...but the truth is he or she is a scumbag. Now what level of scumbag she or he is I cannot say...but with confidence I can say that every OTC CEO is a scumbag. Deal with it.
25. The Know Your Friends And Enemies Axiom
You will have a hard time succeeding down here without friends. Any amount of public success will bring you more friends and new enemies. Understand which is which. Keep your nose clean. Loose lips sink ships. Know when its time to sever a relationship. Know when its time to repair a relationship. Know your associates.
Now, I must ask you, knowing all of the above, do you REALLY want to mess around with penny stocks? I mean...really???
Okay.
Those of you that have never traded in the OTC or are just beginning to trade down here and are right now shaking your head and thinking that you somehow transcend these axioms...you will have to learn the hard way. Traders like me will end up with your money. I want to thank you in advance for helping build my portfolio.
Those of you scared out of your gourd right now...GOOD. You should be. You should realize that you're absolutely nuts to be risking money down here (and I use the term "down here" on purpose) in the OTC!!!
Investing in the OTC is very risky. It's riskier than Alaskan King Crab fishing! But the rewards often outweigh the risk. The lure of monster profits is too much for many of us to say "no" to. The idea of finding that one true gem in a million that becomes the next Yahoo is too strong a draw for many of us to avoid. The surge of adrenalin that comes when profiting 100% on your money within the same hour you made the trade is addicting. The fun that comes from finding friends and having a successful trade with them is indeed AWESOME.
The OTC is a crazy world that attracts some pretty crazy people...and yet I have chosen to live in this world...I have accepted the consequences of investing in the OTC. I feel safer putting my money in an OTC issue than a NASDAQ or NYSE issue because I understand the OTC.
I have written all of the above as a student, not a teacher. I will always be a student of the OTC...ever learning. I do believe that is a good attitude to have if you want to truly be a successful OTC trader/investor. I do hope that some of what I have said above will help you retain and/or build your bank!
If you want to quibble about something I've stated above or you'd like to tweak something to make it a little more accurate...please feel free to come and engage me on my Van Scan board here: http://investorshub.advfn.com/boards/board.aspx?board_id=12481
Sincerely,
vantillian
What do you base this on enzo, 1 PR sent it over 02 the last time. Is this statement based on charts? I'm curious, don't get me wrong I am no pie in the sky person but I would rather base an assertion on fact.
Smitter there seems to be some doubt on the board about the dilution. A fresh structure from the T/A next week will only settle nerves around here. I believe we will see sideways movement till a PR of substance is provided by Edwin. We could possible see upward movement depending on how much of the float is locked up by steady hands. Once again goodnite all!
I have an extra 2 cents here, alot thought this was a rocketship to a dime. It might soar depending on what details the next PR details. I have learned over time that there are a lot of people here wishing to climb aboard the next rocket from a penny to a dollar in a week. Hell I even have that dream but reality bites and you have to make wise decisions with your pennies and if you make enough wise decisions you turn pennies into dollars over time. Good Night all!
CNEX did exactly what I expected it to do today, it suffered exhaustion of 100+ mil in trade day yesterday. That is not bad, what happens next week is more important than what happened today. If we continue sideways for a few days it will indicate stability at these levels, if we see the pps fall next week then we need to look for what is occurring within the company. Question then would be if the company had diluted more shares this week we had no knowledge of, the company has always stated that the share holders would bear the cost of finding gold.
My suggestion is to hold on to what you got, if you spent milk money shame on you. Next week will tell the tale of CNEX. GLTA
chucker, I am going to have that drink for you, me, and everybody else that needs a drink. Lately I have taken a beating in the market, but it will turn around.
1.5 mil form T Form Ts seem to be getting smaller. All in All about what I expected for todays trading. Sideways is good, now for a nice bottle of wine and a good movie. Have a great weekend.
I enjoyed yesterdays trading very much, I'm looking for green this afternoon but would be happy for an even close happier for a greener close.
Your welcome to all that enjoyed my lesson in GAPs. Lowtrade had the best explanation and lesson on GAPs I have ever seen and so I saved it in my important stock file on the ole computer. It was not till a few weeks later I got burned on a gap that I learned my lesson.
the following is a lesson from Lowtrade a moderator on another board.
Gaps don't need to fill, they normally do!
You have to think about what causes the gaps in price!
Emotion ! That's why you often see the term emotion gap, in books. When some news event or big guy manipulation happens, the price swings to extreme, leaving gaps in the candle pattern from the previous day close, to the next mornings open.
There are 4 types of gaps,
Common Gaps
Breakaway Gaps
Runaway Gaps
Exhaustion Gaps
Keep one thing in mind! I want to stress, my opinion on what a gap pattern looks like.
A gap is seen when the day before's close price, is lower then the next mornings open price! or vice versa (the candle body only) If you look at your trade screen, & list the previous days close & new days open, you'll note PREV&OPEN PPs, they are the numbers!
Many look at the candle chart and see the candle spikes lines touching the day before's EOD PPS or the day before's candle, has a top tail, reaching the next mornings open PPs.
Because the tales seem to cover the gap, many say there is not a gap! WRONG!!! The spike tail, could have happened any time during the day. And the candle body is the actual final or first Price in each days trading. Only use candle body.
Daily SPIKE TAILS don't count!
-------------------------
I say 90% of all gaps fill, others may say 80% or 75% or 98%. I have no way to prove this, and double anyone can! Just let it be a concessions, that gaps fill most all the time! So they are reasonably low risk trades.
Now back to the 4 types;
Common are always closed.
They occur with a one day pop, usually, and the lack of a second day continuation, shows why they fill! There is NO real emotion.
Breakaway are usually closed, You see them in a multiday emotion run, where the stock price is fluxing around the same level over several months. They normally occur during chart pattern moves. (like triangles, double bottoms & the like) And the following retail mindset returns to logic, and fills the gap with the retrace.
Runaway are often the "few" that don't fill. Or if they do, it takes so long for them to fill, you don't look back that far to see the gap fill at all! LOL The difference with these and Breakaway gaps are, these are seen in climbing stock patterns, not fluxing. Retail is continuously positive or negative in a climb or walkdown. And a one day emotion spike doesn't warrant a price correction, because the mindset would get the PPs there anyway! Basically every thing just continues!
Exhaustion Gaps are rarely seen. They happen at the end of a move. And show the retail mindset has reached a enough is enough point.
Worriers have been expecting a turn too long, they have a concerned trigger finger, creating a rush out the door on the first sign of any weakness, and sell momo takes over. The next day others, which weren't worried, see this and can't decide to agree or not. The PPs swings large. Then everyone just gives up.
So, to recap;
MOST all gaps fill. They are caused by retail emotion and when emotion leaves, the long share holders, bring the stock price back to a reasonable, average new price level.
If you see a gap; expect the price to come back & correct the emotion!
Common, Breakaway, & Exhaustion gaps
Are the ones that fill most of the time.
Runaway gaps rarely fill, over a short period of time, may take months to a year or more and should not be played.
Form Ts we have had quite a few T trades, they have never had a bearing on our open or close. T trades are used when an institution or an individual makes a large trade during the day. Some people say it is the MMs settling trades, if that was the case then all stocks would see T trades everyday. We will open somewhere close to where we closed but everyone should remember the gap rule; 99% of all gaps fill either the day of the gap or at a later date it will fill. This board has learned that the hard way.
Ran out of free post, one day I need to purchase a membership. Thanks for the wharehouse, I'm hoping to get rich off of algae, gold, and oil myself. I'm looking for another good day today here at CNEX.
100,000,000 shares will be traded today
We have GOLD and LOW Float
WEEEEEEEEE are officially #5 and WEEEEEEEEE are the prettiest stock on the breakout boards!!!!!
I did, CNEX is neither over bought or sold according to my scottrade MACD, we are on our way to Pennyland my friend!!!
WEEEEEEEEEEE are on the verge of a 10 bagger right now, a 100% gain right around the corner
Pleased to be here guys, we are moving up the breakout boards like a rocket, we might see top 5 here real soon then all bets are off!
Thank you El Nica, we are going to test the .003 today if not the next tic
You bet smitter, put the pressure on these MMs and we are back in Pennyland. On your other question, that would be great!
I don't know how thin the L2 looks but if we break the .002 and break the .003s we will be in Pennyland by weeks end
This is good sense buying, it's a steal at this price and you would have to be crazy to not want in at these levels.
If we take the .003 this will scream like a commanche with a gut wound, sorry to all of my indian friends
Good call Smitter, a gap can be a run killer as we have all seen!
<--------24915 85 more post till your prediction becomes true
All of my Wild A$$ Guesses have a little bit of science behind them Raymond. Occassionally I just wet a finger and point it straight up and see which way the wind is blowing.
Absolutely however, I reserve the right to use the POS on edwin next time we need his attention. How is the wife after her surgery?
Actually cbrad, I think edwin want me to quit calling him a POS and I will cease with that phrase for the time being.
Wild A$$ Guess
We had a form T for 1250 shares this morning. We will see about afternoon form ts in about 20 minutes.