Lowman, credit you all the others for the infomative posts on the HMGP board. The constructive discussions and insights are refreshing and contain some excellent dialog and information about HMGP, its market place, operations, and future potential.
To me a short term cup and handle is very hard to work in your favor for any +....$.... trading. Within this current uptrend of HMGP there may be short term cup and handle patterns however I look at the recent 6 week pattern as an uptrending staircase and rather dangerous to attempt any in and out trading if one belives that a future higher SP is going to occur, which many on this board believe, as do I.
HMGP has demonstrated a pattern over the past 6 weeks that all moves up have produce very little give back in SP and very few shares available to purchase at a lower SP. Interestingly each step up for HMGP has been backed by a PR (recently the Sabine news),followed by very little give back in the SP, followed by the next step (PR) (up the staircase) . Just imagine what the step may be if the next PR is a positive validation of recent or expect production!!!!
Therefore my strategy remains to wait for an actual cup to form, which in my opinion will be ~.40. Then step back and see if the short term shares (not my long term shares) I have in HMGP would be worth a trade (out and then back in using short term shares only) and ride the handle for an expected correction and re-purchase before the next big breakout to the upside.
When the strategy works, and I have been successful using this strategy with other pennies and small caps (I have also taken my licks), its a great vehicle to increase overall shares in time with a stock that is experiencing an overall long term upside pattern.
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