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Replies to #10242 on lowtrade
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lowtrade

11/01/07 12:05 PM

#10246 RE: was RocknRolla #10242

Evilwilly

The first chart sign someone may want to setup a bottom channeling stock with low volume for a PR hype play is when you see strong accumulation.

CMF shows buy/sell pressure. If a stock is not moving up or down, in price there is little retail interest. The CMF buy or sell pressure should be near zero. BORING

If you see strong CMF pressure, either buying (green) or selling (red) someone is accumulating stock. Doesn't matter when the PPs is stalled channeling, because weather it looks like buying or selling, in the CMF, someone is getting the stock near the same price.

If I see this I check the PR story for any share restructuring or funding in the last 6 months. Put the two together and it tells me some insider has just gotten allot of shares and is now accumulating shares on the open market.

Then you normally see a PR blitz from the company. This creates retail interest and the accumulating insiders can sell their shares higher.