United States Oil and Gas Corp (fka USOG)

[StormyStocks]

1. OTC/Pinks attract short term investors/day traders naturally so as soon as there is a big run we could expect some consolidation immediately thereafter as we have been seeing. In cases like this would it be wise to cash out and then re-enter after the market consolidates?

That depends on your personal trading philosophy. Some traders look at this consolidation as an opportunity to average down / buy more shares in anticipation of the next run. Others will cash out and move on until the next run. Stocks like USOG will indeed have another run at some point. The volatility of OTC stocks makes it impossible for anyone to say which course of action is truly the best course of action. The decision remains with you and you alone. When someone decides to take a position with a particular stock like USOG, it is a good idea at that moment to decide when to exit and stick with that plan. That includes top and bottom prices where you will take profits or throw in the towel. If you have a plan from the beginning, it is much easier to avoid the emotional involvement that so many traders are stuck.

2. If so what are the technical indicators to look for? Anyone have suggested readings or think this kind of thing is too risky with a long-term positive fundamental outlook on an investment? Is it worth the commissions?

I would recommend stockcharts.com to learn about all of the different technical indicators. It is free! Realistically, OTC stocks do not react to charts in the same fashion as the major stock exchange. This can be a fatal error for a trader to mistake an OTC stock for a big league stock when it comes to the charts. It is not possible to predict the ongoing performance of an OTC stock for more than a few days at best. However, when a stock is in its run the most helpful indicators are the RSI, MACD, and cash flow indicators. Due to the volatile nature of this beast what looks great today may hit rock bottom tomorrow. It is best to use the charts to verify your due diligence and what is being read on the message boards, but not an all-knowing predictor of an OTC stocks future.