SPOOZ Inc (SPZI)

[Imperial Whazoo]

When I put my money to work, if a stock like SPZI is "perceived" to be unlikely to see a major event for a while, I'll nose around for a stock where the perception is that there is something soon to happen. Momo plays are always sexier than plays which look like there is little likely to soon happen. The danger is getting lulled to sleep and caught flat-footed. A smart thing to do, if you have even a particle of expectation that this low volume pullback will be followed by a vigorous cycle leg back up, is to accumulate. JMHO.

The only thing I will sit up and take notice of is something like a huge bailing happening, as demonstrated by a huge increase in volume. This low volume pullback we are experiencing is pretty textbook.... a real yawner. With nobody expecting big news for a while, we are simply watching paint dry. And this is hard to comprehend? Not!!

So, as is entirely within norms of chart behaviors when you use supply and demand (volume) as the guides, a low volume pullback IS a gradual drift down in much the same sense as a daffodill is yellow.... it simply IS that way. And we see next to no upside pressure right now in SPZI.

After all, if it looks like a stock is going to be dead money for a while, minds worldwide pretty much think the same way, naturally. Thats reflected in the chart. Thats why you can read a low volume pullback to mean people are not panic selling. They've simply collectively "swarmed" away LOL, and it shows in the chart. The swarm will be back, especially id SWARM works LOL.

So VOILA.... money is put to work where it is perceived that there is more chance it will not be dead money for a while.

If individual decisions were being made all over the world that SPZI is in trouble, we'd see higher volumes. What I see is the evidence of independent decisions that reflect a common "guess" that they are safe trying to put their money to work in places where more momo is perceived to be present. Thats all thats going on.

What could really blow up in this approach's face is if the "guess" as to this being dead money for the forseeable future is dead wrong LOL. Dead money? May just be dead wrong.

And confirm this by going back and watching what begins to happen late in the day recently. Price may languish all day but watch the last hour to hour and a half. Recently, every day in this part of the trading day, somebody has stepped in and bought a chunk. What that translates to, like a gutteral grunt or a warning bark by a prairie dog, is primal... a kind of primal enunciation. Smart money tries to scalp cheapies all day long, probably sitting just below the bid most of the day, but as the end of the day approaches, they pull the trigger and buy a chunk at the ask, just in case there is a surprise and the concensus "guess" is wrong overnight. They are placing a chit on the table at the ask to be sure they don't get caught flat footed.

Today, we saw exactly this at 15:04:53 (240K at ask) & at 15:07:14 (500K at ask). Even the timing tells the story. They have in mind sufficient size to merit bothering. That was $2500 on the table, folks. Enough to bother with, but because the volume has been thin, they show themselves to be seasoned because they didn't fret about it too long and miss the trade over a paltry few nickles and dimes. They pulled the trigger after a day of trying and they did so well before the end of the day. Go back and scope out a few past days. Regular as clockwork folks.

Imperial Whazoo