Sunday, August 24, 2008 8:45:11 AM
So .28 is a short for you and .45 or .50 is a buy? I've never heard of such an absurd thing. But that is actually the type of mentality that has been created in this market now that the naked shorts found a way to "THINK" they eliminated infinity from the equation to the upside.
Based on the historicals if one were to know this stock well, then you would already know that the trendline for this stock held off the last earnings report and the move back to .28 Friday created a big buy signal. A print of .36 in advance of the next earnings report actually creates a second and even stronger buy signal. A print of not .40 but .41 creates the third and strongest buy signal to suggest a move above .70 is coming.
Where everyone else will come running to the stock is on the follow through extension levels which are breakout levels and not necessarily strong buy levels. Those would be .61, .71, 1.01, 1.59, 2.01, and 3.59.
Each of these, I repeat each of them, in fact I would stake everything I own and will ever come in contact with to assert 100%, will get broken. It's kinda like telling the kids that Santa will be here just after midnight. There is absolutely no way he will miss our house! When you know what you know, you don't have to convince anybody else of anything.
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