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Replies to #27195 on lowtrade
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lowtrade

01/13/12 5:03 PM

#27197 RE: ICEQUITY #27195

I've been posting for years, big guys create runs. Low OS stocks create large daily swings. Share structure is important on the OTC only because big guys buy runs their. When big guys get large amounts of shares in low volume stocks, a bought run can be expected. This is where most of the pond fishing and pump & dump 5 to 10x'ers plays come from. Low volume, under the radar, non trading OTC stocks. Most of the swing trading climbers, like the temp job, run/retrace/channel and run/retrace - pop patterns, come from pulled down price stocks, also with small volumes, but larger OS involved.

Unless the big guys see enough retail interest in stocks to make money there, they won't bother. That's where the bought price and volume pop comes in. It's their attempt to get that low volume interest up, into fleece the herd levels. So yes share structure is important in future OTC plays.

I saw no info, in your post, about share structure and just looked at the charts. I'm way to busy to research share structure on every OTC stock brought to the board. Sorry. With charts alone, volume is more important. The charts look boring. If you found funding or debit conversion. Thats a different thing. Share shifting deserves a weekly watch. Until price & volume double. When it should move to strong daily watch for new breakout.

The rule of thumb for big guys having interest enough to buy a run is; single zero stocks need 1 mil, double zero 10 mil and tripe zero stocks need 100 mil in average daily volume to have enough retail cash involved, for them to make profits.

If and when you see the big guys, which have the large amounts of shares for sale, buy that attention getting pop. It's a boring weekly watch. That's the signal they are ready to sell. After keep and eye on volume following. Until the rule of thumb levels are reached, usually the big guys won't act and come in with the real run. They will try another attention getting pop. A week or three later, until average volume gets high enough.

The OTC game!