Replies to post #62712 on Capstone Companies Inc (CAPC)

[Salve Lucrum]

Vorticity, I couldn't agree more.

However when a poster, for whatever reason, bombards the internet with countless posts proclaiming something to be true, even when it is demonstrably false, the statement may gain credence from sheer repetition. For those who lack the knowledge or expertise to vet these posts, these can become a self fulfilling prophecy because the inexperienced can and do frequently base their "DD" on internet message board posts.

Hence the danger of the false "somebody's shorting CHDO" posts, another of which was on the Internet yesterday (not an iHub board). From when these posts began in early April, fear and uncertainty have dropped the average daily CHDO volume over 66% for the period.

While I agree that internet posts probably have little or no effect on "serious investors", far too many "investors" in penny stocks like CHDO do not meet that criteria and thus are subject to bulletin board whiplash.

[Salve Lucrum]

Technical Analysis is essentially useless on penny stocks.

Vorticity, again I not only agree with you on "charting" but have stated my position as plainly as possible in the header. This has been shown to be true time and time again by CHDO.

Yes, on heavily traded big board stocks with a long history to base trendlines on, T/A can give an indication of prevailing direction. T/A is really more suited to indices or their dependencies such as the DOW, Triple Q, or ETF's. And even there, a simple "Greek Tragedy" or the European election results can throw a long term uptrend into an unexpected and un-forecast loop. (See QQQ for example)

The most ludicrous of the failed CHDO predictions involves the ever popular "Golden Cross" This can be a legitimate indicator but only if you understand how it works. Too many CHDO "chartists" begin salivating over a Golden Cross whenever a short term average drifts towards a longer term average. Any time averages increase, it is a positive sign BUT ...........

For a true CHDO Golden Cross to exist, four conditions should be met:

(1) Both averages, as the cross approaches, should be trending upward, even if only slightly. They will be essentially parallel at the time
(2) The shorter average must cross the longer sharply, usually between 30 and 45 degrees. Oozing across doesn't count.
(3) The cross must be accompanied by an increase in volume.
(4) the shorter average must maintain its upward momenum long enough to establish a viable trend.

You will not find these qualification spelled out on many internet definitions of the Golden Cross because those are oversimplified for the average reader. However, if you look at the illustrations accompanying the text, you will clearly see that at least three out of the four conditions above will be met.

Sorry to be pedantic but the inaccurate posts about Golden Crosses on this CHDO board are more than annoying, they are misleading and therefore harmful.