Hi Tom,
Sorry I have not answered your question to me that you posted on the DMX thread. I will try and give you my thoughts here, since your question on DMX was in effect answered the next morning by Rebecca! I continue to be a very bullish long on DMX, only now I can sleep.
Regardig Eiger, every time it seems like the indicators and sentiment are turning up, we are once again disappointed. Fact is, I am resolved to believing that we are going nowhere until some bullish sentiment returns to the tech sector.
This is not to say that Eiger is not being accumulated by smart money -- I really think the evidence is there to support the fact that it is. However, the smart money is using the negative market sentiment to its advantage here (read Nesbitt and Canaccord). As we trade in the $2-3 range, take a look at the relationship between volume and price movement. Volume is certainly greater on the up days and much lighter on the down days. On Balance Volume (OBV) - nice positive divergence from price, indicating money flowing in.
Seems that houses like Nesbitt and Canaccord are consistently letting the price drift down on light volume. As the offers backfill the price as it approaches the low 2's, the houses take out the vacuum cleaner and march on back up to the high 2's. Then they lay off and the process starts again. Nesbitt, which has been following and buying this stock for a long time, did some very serious buying last week (over 100k on one day alone).
Regarding the Moving Average Convergence Divergence (MACD), you will notice that on the two year, weekly chart, it is about to cross above the signal line. Another nice sign, given the greater reliability of the longer term chart. See my post on SH:
stockhouse.com
Also a good sign is the MACD on the daily chart. While a little more volatile than the weekly version, notice again the positive divergence with the recent price trend. In other words, the MACD is not confirming the down-sideways trend we are in.
Tom, I am commenting here on technicals because I don't think fundamentals can move us here until sentiment changes. Neither will technicals really. All I trying to point out is that there are positive patterns happening here that only are visible in the technical indicators. They are telling us that the price action is not representative of the true forces of supply and demand on AXA. Eventually price has to move spring in step with those forces.
stockcharts.com[L,A]DACLYYMY[DC][PB50!B200!D20,2][VC60][IUC20!LA12,26,9!LD20!LH4,3!LG]
These are just some ramblings on my part and I am open to being told I am full of s%$t. Maybe I am seeing the world through rose coloured glasses, but I am one of those people who do believe the technicals have some merit.
Joe
PS. Regarding your suggested umbilical cord between DMX and AXA, it rings very close to home. I first heard of AXA from my mother (of all people - she knows nothing about technology but had someone recommend it to her as an investment) and I have since gotten her into DMX. |
