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Replies to #66 on The Daily Profit
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The Daily Profit

09/28/11 11:00 PM

#73 RE: Nedrgr #66

As far as ENKG goes, the technicals, although very sloppy, looked like they were ready for an uptrend until support broke today. I don't know if support broke because of the news with the new EVP or not because I haven't had the chance to look into his history yet but when technicals show signs of upward movement and the PPS tanks like that it's usually because of overselling. This could be caused by shorting, debt holders liquidating, dilution, large holders tired of waiting, or a few other things but either way something was up today and before buying in I'd look to try to find out what it is. As for buying in, if you do, I'd personally look for a buy in point around .0008-.0009 and only buy back in higher if an upward trend starts to set in motion. There's no way waiting to buy in cheaper can HURT you, only lessen your gains. Buying high on the other hand can and will hurt your portfolio if you mistime it.

And as for SIOR, the technicals look clean. You are currently on a high of an upward trend, to be more specific, you're on the 3rd leg of the upward movement. According to Elliots Wave Principle of 5 wave cycles, you're going to have another draw back to consolidate a price support before any more big gains happen. I'd suggest waiting for a price drop of roughly 10%+ as your sign to look out when to buy back in, but only if things are looking as though they are still moving strongly volume wise. According to this theory, if there is another small-medium sized drawback in PPS soon then you will be due in for at least one more upward trended leg before it consolidates lower again or falls back to a PPS that it can fully support.

Again, this is my analysis, opinion, and perspective. Do DD of you own as well. I'm just here to bounce thoughts. Keep in mind that the company IS operating at a large net loss and as of the last quarterly report, their float was roughly 200M. Best of luck to you friend.

-Phil