ERHC Energy Inc (ERHE)

[nordicroots]

No one can disagree with the notion that for every instance where there has been a buy there has to have been a seller.

I have found that meanings are in people most of the time as opposed to just the words they choose to express themselves. I have seen that one person may use a phrase or wording to express one thought and it comes across as something entirely different to another person. Quite often these perceptions are shaped by each individual's own personal knowledge and experience.

In describing the idea of no one selling, I get the sense that we are talking more about the ideas relating to capitulation rather than a few small simple buys and sells in this name. I don't think anyone would dispute the fact that there has been no significant volume upon which sellers could step in and unload shares, but by the same token there was not a large supply of shares on the offer that they'd have been able to buy if they really wanted to.

It seems to me that the panic selling is over and now that we are on the grays the opportunities are different than before.

Might be interesting to refresh our memory on what the term "capitulation" involves as there are some important lessons that can be learned here with respect to what is going on:

https://www.investopedia.com/terms/c/capitulation.asp

Note what is said about the last group of buyers - "When the last group of buyers sees their positions declining, fear starts to creep into the market. As prices continue to fall, buyers who purchased earlier start to sell their positions to salvage remaining profits or limit losses."

I think we are beyond that in this issue, what you see are those last buyers firm in their analysis and confident that better times are around the corner for them and they are simply unwilling to sell their shares at a loss. One reason might be because even if they were, it is unlikely there would be sufficient volume to support it. And of course there is always the flip side of that coin to consider - and that folks is what makes a market. In this case, the market has been extremely weak as highlighted by such low volumes and the overall direction of share price(i.e., last few years = downtrend, short term trend? some would argue that going from .0001 to .0002 is a 100% gain so this must be a positive up trend - its all relative isn't it?).