Lowtrade...fuel for the concern fire...and other thoughts.
<DMI shows more down coming. IMO
How far, you ask, it could just revisit the support or break it! We'll see!>
The much heralded move from the OTC:bb to AMEX comes with good and bad.
The good is, among other things, we will finally have an accounting in the next 45-60 days of the actual short interest in the stock. Many can margin now. Institutions will be more comfortable getting in, etc.
One bad thing is retail will now lock in "Stop Loss" orders, where their brokerages would not allow it on OTC:bb. Retail is so programmed to doing this and often doesn't realize what a yummie lure for the market makers these open sell orders are for raiding purposes for increasing their supplies on the cheap.
You can make book that because of the latest channel length in time, there are a pile of retail stop loss sell orders sitting under $3.15, probably stacked between 2.95 and 3.10. That bait is much too tempting not to grab, particularly for a promising fundamental picture coming up in "test flight" Aug/Sep and perhaps good second Q earnings in July.
Clearly,technically, we are at a pivot point in the chart. Will they "gun the stops" and head fake a drop out of bottom of 3.15 channel and close back into the channel, as they did in two previous channels, 2/23, 3/17. 4/22 and 4/25? Or will they use it to set a new channel? A close under $3 would set that a new channel may well be in play, for my thinking.
Now if they keep the same pattern of 23%, the likely new channel will be $2.79 (top of thrust peak 1/27) to $3.51...mean $3.15 .72 range/3.15= 23%. So any stock they grab around $3.00 is golden fodder, as it would be below the mean.
The one remaining thing I hope Huff delays for as long as possible until the company is on very sound cash flow and profitability, is allowing option trading in GTE. It will kill the stock. I have seen it happen so often it is heart breaking. It is the true cash cow gravy machine for the MM's. Retail smarties like em because they can sell covered calls to average down.
Personally, I prefer to short my own stock at the top of channels to average down. If the stock breaks up I cover the short and still own the stock, rather than have it called away. More times than not, it breaks down and I cover near bottom, effectively lowering my cost basis to that cover point....without expending more cash to buy more to "average" down.
regards,
m
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