SMART MONEY GROUP

[rich pearl]

hey SMART

noticed ya asking for requests for Stockchart to do LOTE. here's a link to the 3 month daily from the end of the day at Profitspi. its got the faster moving averages, 5/10/20, bollies and several indicators. its also configurable, so anybody can change it to use whatever they want.

http://www.profitspi.com/stock-chart.aspx?id=LOTE&ca=1444136553

and... since i linked to a chart, hope you don't mind me giving a rendering of what i see.

today you said, "still holding like a champ~! LOTE", and while that's true, the chart has some clues as to what might be happening. as stated elsewhere, this stock is trending sideways, but it looks to me like its on a slightly downward slope. having retraced from that run to the high of .03, i take note that the 10 day moving average has almost caught up to the 5 day. for those unfamiliar with charting, this is the sign of a pause. the stock is searching for a base from which to leg it up. generally speaking, support points on a chart are based on historical points, broken resistance, and moving averages. the problem herein is that having come so quickly from such a low entry -- lets disregard the recent bottom of .0012 and call it .0024 -- this stock has very little in the way of broken resistance, and this is not a 2013 redux. that history has come and gone. the run past .007 put this into blue skies. so, while its trying to hold the .018-.019 area, its not a firm base yet. and if the 10ma crosses over the 5ma, its already below them, it will put .015 and the 20day, currently at .0125, into play. for those who wish to either add on or enter, that might not be such a bad thing.

for those who don't understand, let me state that a chart is a historical picture of the past. though it is open to interpretation, it is based on fact, not fiction. you can't fake a chart when there's enough trading to give a proper reading. that said, price alone is not always reflective of whats happening. sometimes you have to look under the hood. despite the recent paint jobs to end the day, indicators often give guidance. via the a/d one can see that this is being accumulated. and neither the rsi, fast sto, or williams are in overbought territory. following the spike to .03 they have been reset, leaving room for this to move up without being overheated too quickly. but a look at the chiosc -- i use it to reflect on the direction of float availability -- sez position traders are selling off shares, locking in profits, and freeing up money for other stocks. that's prolly because at present there are no signs reflecting a need to get in other than to accumulate. its your typical low volume consolidation phase for a flag/pennant pattern. the questions everyone wants answered are: when will this move? and does it have more in it?

to that, i can't quite say. i can venture a guess that on the break of first .027 and then .03 this should go to .04-.05, but lacking a forward event such as news or filings, this is a purely speculative play, and, unlike the chart, which as i say is fact, the DD is all assumption. so, while it certainly looks to have a story that could be everything wanted, my healthy sense of skepticsm, which has kept me alive in this dangerous game we play, tells me to be cautious. that said, i, too, have a postion in LOTE. as a matter of course, my days of gambling big are prolly over, so it's small and profit has already been taken, but like everyone else i wouldn't mind a bigger payday.

as always, ALL are welcome to discuss, debate or just disregard this post.

best of trading to EVERYONE

rich