up, down sideways.... hey! stocks trade in any all directions. that's why this game exists. if it was all in one direction where would the manipulation take place? fruitless to argue about it anyway. everybody sees things in their own light. buys, sells, targets, they're all up to the individual. i think all that matters is whether it works out or not. personally, i'm happy for every profit seller, big or small, no matter where or when they sell. i hope everyone will be as happy for me when the time comes.
as for the stock known as OCLG, from my vantage, todays trading was a rather healthy retracement. i suspect there may be more of this in the next day or so. it could go back tomorrow to test the 10ma at .0007 and, volume dependant, that wouldn't necessarily be a sign of weakness. its to be expected that on any run position traders and bottom buyers will either get out or protect their profits by selling into (or after) the run. and that's simply good principled trading. its a strategy that favors safety over a high risk, high gain venture. and i don't see it as a problem for those who continue to hold.
first off, it keeps a stock liquid. if no one sold, there would be no shares to buy. this is not a stock that MMs are going to naked short. secondly, it allows opportunity for both those who wish to enter and those wanting to accumulate.
in any case, whenever there's a large transfer of shares from one hand to another, as there has been in this run, it takes time for the stock struture to absorb all those redistributed shares -- i say redistributed because until the AS is increased, OCLG is not currently able to dilute. during this process, as shares are traded back and forth in what is generally called a consolidation phase, the stock will usually test the support lines before it retests the resistance at the top. the real tell-tale is in the volume. if its too much, it can push a stock one way or the other without it having first established a base. this is not healthy. its also why a consolidation phase is best served with diminishing volume. this went from 75-80M to slightly less than 30M. that is a retracement not a dump.
as for the pps pulling back, think of the framework of a stock in terms of the building of a house. at some point there's a basement where a foundation is laid down, and then a first floor is built where the entry is at ground level. from there evey level above has to have a sturdy floor, and a set of stairs on which to go up or down. when there are no stairs, its generally a straight fall down from where ever the top is. can you say 'ouch!'?
at .0001-.0002(3) OCLG was a sub-basement stock, and it was dark and dingy in there. then, at .0004-.0006 a basement began to take shape, and buyers could begin to imagine a floor above. now, as this tries to lay down floor at a ground level, it needs to make sure its properly supported and on a stable platform. news or catalyst dependant this can take time. but while this construction is taking place, a staircase can get nailed down via the washing of the range. its all of a process.
hope i didn't prate too long for those who live in twitter land.
good luck to ALL
rich
