Another encouraging day today. Stock is most definitely behaving differently than it used to before the bulk of the dilution flushed thru.
Each day it seems we are seeing a handful of technical traders buying in bit by bit.
Bachart.com now indicates that 100% of all short-term, mid-term, and long-term indicators all rate SCRC as a “buy”. In addition, it now indicates that SCRC sits in the top 10% percentile for both the Strength and Direction categories. In fact, the Direction rating has SCRC in the top 1% of all stocks.
This is what can happen when there is an absence of highly motivated sellers.
Another encouraging metric is that each day this week, the VWAP has creeped up. By my rough estimation, the VWAP for MON was .18, then .19 for TUE, then .20, then .205, and then today was .21. Unlike prior days when we kissed .21x, we seemed to have sustained buying interest at this .21x level instead of simply seeing 1-2 prints followed by a retrace. Hopefully these are the initial bricks in the foundation for a post-.20 base.
And speaking of bases, as you know, I have been mentioning for a couple weeks now that other than the 3-4M shares that comprised the base at the .13x-.14x levels, there has been no real consolidation at .15x, .16x, .17x, or .18x, and that the base at the .19x-.20x levels was the strongest we have seen since .13x-.14x. Well, since today’s VWAP was .21, we can’t include that, but prior to today, the base at the .19x-.20x level has now grown to approx 10.1M shares!!!
This should prove to be a solid area of support for us, IMO, so it should trigger an upward adjustment to everyone’s risk-reward calculus. Of course, there is no such thing as a free lunch, so the flipside to having such a massive base in the .19x-.20x level is that there will likely be some headwinds and moderately strong resistance at the .27x-.28x levels. All things considered, if we were to actually experience this resistance, it would mean that we are actually AT .27x-.28x, and so that would be a good problem to have, LOL…
Here is a final interesting tidbit for folks to chew on:
Since the run began in early-DEC'14 (so almost 2 months now) we have traded over 25M shares. Most of it getting discounted financier shares churned over and re-setting the cost basis of these shares, which was very important to do.
HOWEVER, even with a staggering 25M shares traded, this only translated to a little over $4M in dollar-volume. By way of comparison, in just a tiny 4-week period of time during the height of the epic P&D that JOSEPH ZAMPETTI and his core group of Section 17(b)-violating criminals were paid by SCRC to orchestrate, there was in excess of $8M in dollar volume traded.
Why is this important? Because it tells us that in spite of the massive 25M shares that have already traded and in spite of the fact that we have been running for almost 2 whole months already, that there is still PLENTY OF MONEY out there willing and able to buy in. So long as the technical indicators remain bullish and SCRC's financial results don't take a step backwards, this money will continue to flow into SCRC.
Continued GLTA...
AI
