Hey Musher, thanks for the question. It keeps me honest. An obvious shakeout occurs with a hard down day or two, maybe three but all hard down and scaring the crap out of any weak holders. Generally occurring at over head resistance in other words close to making a new 52 week high. Each down day is on good volume but the main shake out day is on huge volume. Sometimes ten or twenty times average and then the stock closes up or gaps up the next day and runs to the clouds.
In the case of TTCM I look at the DAYS volume not minute to minute or the market makers. I look at the stock action. We are at a MAJOR point in the SP trying to make a new high. But the buyers are not COMPLETELY overwhelming the sellers...at first glance. But if you look at the Accumulation line, starting around the 17th of January the Advance Decline (AD) line diverted from the stock and started taking off to the upside. This is pure unadulterated continued ACCUMULATION while the stock is moving sideways to down. The AD line tells me that almost every single day, the accumulation is so strong that no matter what happens intra day, there are more buyers wanting in then out. Every time the sellers try to get out of their position they are met with huge buying, meaning, there are NOT a lot of sellers. Given that we are at the end of a one and a half year POSITIVE consolidation SP pattern, the AD line has been on a tear diverging from the SP and all the FREAK news and potential of the company itself, this IS a shake out. Suttle, but this is exactly what a shake out looks like, to me, based on this analysis. Suttle for this reason. The sellers CANNOT overwhelm the buyers no matter how many shares they put in the ASK.
What do you think of this? Clear as a muck pond lol?
