US Stem Cell Inc (USRM)

[NoMoDo]

I used to fish as a kid, but haven't since. Yet I can tell when someone is fishing a mile away.

Assume someone needs to pay $8 a trade and then buys 1000 shares - at USRM that would be about $40. In order to break even, the stock would need to get to $48 or a 20% increase. It could be a good investment in a given stock, but it is a tough way to make money.

If HOWEVER, someone sells 1000 shares at the bid regularly, they are not doing it to make money. They are trying to show that the stock price is dropping in hopes that people sell. This is a $48 worm hoping to land a big fish who dumps their shares.

Who would want the price to go down? Someone who just sold and wants to buy back in? Possibly, but not likely. The other two options are shorters or accumulators. The same is true with a huge ask - they are either incredibly naive thinking that they could sell an amount bigger than the daily volume in one bite, or they don't really want to sell but would rather the price drop for one of the two reasons above.

I personally think someone is accumulating while using tactics like a 1000 share sell, a 1 milly share wall, and a daily painting of the tape at the end of the day when possible. It is also a strategy of investment banks and hedge funds to short while accumulating. May seem a contradiction, but shorting helps bring down the price and it takes less shares to lower the price than to bring the price up (fear).

What we have been seeing here is a standstill - nobody selling. Kind like a school of smart fish, not taking the bait. If the volume dries up completely, the next thing you find is some really happy really big fish.