Sulja Bros. Building Supplies, Ltd (SLJB)

[Stock Lobster]

Charts don't always apply to pink stocks, at least not the way they used to.

I've been in too many where the chart was beautiful, with a golden cross indicating a run, only to see the PPS fall. Other times, a run would come out of nowhere, without news or supportive chart indication. I still hold that these are a popularity contest as much as anything. Fundamentals eventually become reflected as well, but not on our timetable.

The only thing, sadly, that becomes reflected immediately is bad news.

Someone in Penny's BB wrote this the other day, and I largely agree:

http://www.investorshub.com/boards/read_msg.asp?message_id=12469450

"Anyone Else Realise Chart Reading is Failing?

Ive analyzed many charts lately and stock performance based on them. things seem to have changed. Meaning stocks dont trade against charts like they did in the past. Before a stock would bounce off say 50dma or barely touch 30rsi and turn back up for a nice bounce swing. These days stocks are sinking through 200 DMAs or sub 30 rsi's and not bouncing, even though good fundamentals exist in the company. Why is this?

I think MMs have noticed this trend of Penny Stock investors becoming more technical savy traders or chartists versus speculators, news players, momentum traders or cheap price buyers. So they are bending the stocks out of shape more than usual to confuse investors who have found the technical route to investing in pennystocks/otc's. What kind of bending? Driving stocks under 200dma's...below 30rsi's, stopping runs after a few white candles and 50 rsi, when in the past 2 or 3 white candles and a 50+rsi meant buy buy buy. Those signals arent materialising into runs anymore. I understand the markets have gone to shits lately but I think there is more to it.

Personally I think Ihub investors rely too much on technicals on their investment desicions, which have slowed down the ammount of trades going in and out of otc's, because people like to wait for the technicals to "look good." Which is smart but it has totally changed the terrain of the otc market. MMs make money off stocks moving up big believe it or not, and they make money of them moving down big. Either way they like volatility and volume, and this super cautious "technicals look good" type trading is taking that out. So It seems as MMs are shaking up that system people are relying on and trying to herd us back into more general speculative investment strategies, through making people realise relying on technicals wont save you.

GLTA and Happy Investing!"

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This response was also interesting:
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http://www.investorshub.com/boards/read_msg.asp?message_id=12469654

Posted by: Penny_King
In reply to: INVestorTrends480 who wrote msg# 696159
Date:8/4/2006 9:11:20 PM
Post #of 696170

I've Been Saying The Charts Don't Matter For Some Time Now...But There Seems To Be Nothing To Do About It... News, No News It Doesn't Matter...There are A Couple Of Really Pretty Charts Out THere But When You Think It Should Run ... Nada...It Seems UBSS& Nite Are Keeping lots Of Stock Boxed up... They'll Allow 3-6 Ticks Sometime And Then They start to Work The Stock Down... But What can You do about It... Again Nada!!! So It Seems All we can do Is Take a Profit When You've Got One and Not Try To Take The Big Winnings Off Any ONE Stock...e.g. ATWT Today... I Saw $1250 Profit And I Took It, Even Thoudh Everyones Screamin "Its Going To A Penny!"... Give ME A Break!


Anybody Who Takes Anything That I Say To Heart Needs His Head Examined... Everything I Write If For My OWN ENTERTAINMENT Only! And Completely !

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Basically, charts are part of the picture, and it is important to realize that other people may place alot of value in them. But they are not absolute predictors of the future. If they were, all chartists would be rich, and no longer posting on Ihub.