Redwood Scientific Technologies Inc (RSCI)

[gnosis]

for those of you who have been around planet earth
you certainly know that small caps are volatile than large caps, right?

so when the market is moving up, small caps move up more
when the market is moving down, small caps move down more

it would be just super if small caps move up more than large caps when the market is moving up, and then move up some more when large caps move down, but they do not generally move in opposite directions - they move in the same direction and different speeds

if you doubt it, you can see this by comparing the russel 2000 small cap index to the dow or the nasdaq or the s&p over various periods of time. the pattern holds pretty consistently

micro caps are of course even more extreme than small caps in their volatlity

you also know that when the market is moving down, there is a "flight to quality" in which investors move out of more speculative investments towards blue chip type stocks for their greater stability

or maybe you have been around but you dont know this and you think the opposite thing. you can take a look at charts of major indexes and figure out which statements are accurate and which are not.

but since almost no one but long longs are holding GDGI, and since almost no one but long longs are buying more GDGI, i would not expect much correlation with market moves in the larger market

it could even be the case that GDGI longs flee the falling larger market and put the liquidity they create into GDGI, in a scenario contrary to the obvious and enduring broader trends of the market