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Replies to #34995 on lowtrade
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01/02/13 6:13 PM

#34997 RE: bullrams #34995

Questions are not spam. Ask away.

Your only looking at half the setup. The chart attention pop. And yes this could be that. But for it to make sense you need to know the company is involved in a new funding deal. Some times a first pop is just proving the price can be manipulated at will. So funders will close the deal. Once that happens is when to expect an attention pop. Both last only a few days and should only be day traded.

So when you see a price pop from one or the other, all you should be thinking is time to weekly watch. Some darkside action may be coming down the road. This pop is what causes one to research share structure, looking for new shares being or about to be issued to big guys. Once confirmed, any real run usually comes 2 to 4 weeks or so later,

Sum all this up, time to read filings and old news releases looking for large amounts of new shares trading hand behind the open market. Depending on what stage the new funding is in, you will determine if the pop was for funding or attention. This will help you in how long you can expect before any run comes.

Not all darkside plays involve a "prove to the funder" price pop. But all runs require an attention pop. So many darlside plays you will see 2 day trade pops and some only one. But after each expect time to pass before the next stage to occur. Several weeks between funding pop and attention pop and a few weeks between the attention pop and real run.

Then we have the pond fishing play setup. Where you look for 3 volume surges without any price change in a 6 month chart. Buy the third small and wait several week for a double. Sell and re-enter large on next double to see a 5x to 10 x run. This chart setup doesn't need share structure research. It pretty much works most every time the second double comes.