lowtrade

[lowtrade]

MrBig

Going to cover 2 points.

Dilution happens in runs, not dives. Think about it. Dilution is caused by big guys selling converted shares into the open market!

Big guys know what they are doing, right. Why would someone which knows what they are doing sell lower? I've posted about created runs. And how big guys that can trade 10% of the daily volume in one day can move the PPs.

These big guy created moves are where you see the dilution coming. Moves that bounce off a long walkdown bottom, for no reason, other then a buying surge.

That buying is created because the bagholder retail (still around after a long walkdown)is finally ready to give in. So all a dilution play big guy has to do is time a few buys above normal size at higher ask prices.

The gain & volume is seen by all the new blood bottom players that watch for bottom turns and the bagholders provide the selling shares, as they dump out on any pop.

Bang the run is created and the converted shares low, get sold into the bagholders & new blood bottom player emotion!

DILUTION moves into runs higher.


That is what I think is happening with your stock. The volume buys, with large voume is the big guys adding to their conversion. Becasue they know .001 is a historical point M&Ms start channeling a falling loser.

Retail will expect to see volume increase at this point and when it comes, the walkdown stops, a bottom channel forms and accumulation starts.

IMO the strong buying & selling is normal in this type of play setup. First thing needed is increased interetst in a failing stock at a bottom.

So the guys that want to create a run. buy big first & then sell big to the new blood bottom players, as they accumulate.

Step one is complete. New retail interest.

Point 2 a created run
Step 2 is to present a double! This is yet to come. When you see the ask pounded, bit by bit, maybe an hour or half a day appart, with about 10% of the daily volume. All the new interest follows the lead and the stock price jumps several times during the day.

Day 2 repeats and the double comes. The dilution usually comes after the first double is seen. In the major emotion run. Before that it's just some reasonably large block orders here & there.

These thing usually last 3 - 4 days and the minute you see the ask support slow in the daily movement. You know all the converted dilution has been sold. The big guys have moved out and without support the stock dive back to .001 for the M&Ms to have their rev steam .001 channel with much stronger retail around.

That's why M&Ms help with this created type of play in the first place. They know the move and when they see it they want the big guy to win. Becasue that will bring a channel audience. That they didn't have before.

At any rate IMO the huge volume action you noticed is IMO step one of a possible created run for a week. Normally very profitable if you do what the big guys do. Usually see FAST HUGE gains and just as fast dives. So be fast!!! LOL

GCOG
http://stockcharts.com/h-sc/ui?s=GCOG&p=D&yr=0&mn=9&dy=0&id=p56823966474



checkpoing created run