Repost: L2 Warning Shots: Speaking of being pummeled, thought I'd repost a few classic pics of what danger looks like. The CLYP, SEAB, SSGI, STGI, HDSN, HILL, LAMP, MICA 'Family Tree', as you said..lol. Here they are, caught in the act, on a few recent stocks. When this picture shows up, you could have anywhere between 15 minutes to several hours to exit. This setup generally occurs after a decent run. Remeber, guys, it's always a good idea to take out your main investment, and ride freebies. Bulls make money, pigs get slaughtered.
(fyi, I'm not eliminating these plays from my watch list, these are just recent examples of a particular 'moment in time'. Nearly ALL penny stocks have dilution and waves of company selling. That's a fact. The selling may be over on these stocks, and the plays could well be safe again for running, but these are merely examples of what trouble generally looks like before a correction! There have been a few stocks recently, like HYRF at .0085, which had a similar setup, but rocketed right through to .015 without blinking. However, the odds seem to be about 15-1 against that happening when you see this kind of bid picture fwiw. For confirmation, look and see if one of the same MMs is on the ask. If so, one of those positions is fake, and it's the bid. Remember, hedge funds are almost never in the business of buying pinksheets or penny stocks. But they are very much in the business of selling them):
Here are a few PHEI's L2 from a recent run. I enjoyed some of this run, but figured it was being pumped so that convertible holders, or other diluters, could get a better price, and snapped screen shots along the way.
Towards the end of the run, traders who tried to 'bidwack', soon discovered that there weren't as many buyers as the level II picture suggested. Pretty easily, the PPS fell to .0018 and lower on small sells, once the retail buyers cleared out.
Notice the progression to screen shot #4, and how HDSN moves down until he's the axe on the ask (with a little red arrow, showing he's lowering his ask, now that he's running out of time to unload his cargo). Also notice VFIN, PERT, SEAB and DOMS helping to lend fake support on the bid. VFIN, in my experience, never buys penny stock. That presence on the bid is only to make it seem there's strong demand. VFIN and HDSN often work together this way, in my experience.
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