Hi Cal Gary,
Though volume does not give the impression, "smart money" (jury's out on just how smart) is waiting in the wings for a pull back. We've now seen this several times in the past week.
I believe traders are well aware of this fact also, and are using it to their advantage. Georgia Pacific, Dundee, Merril, TK, Jones Gable & Haywood, all playing the spread between the low 8's and mid to high 8's. Buying in the low 8's is a relatively low risk proposition when you know there are a few institutional size orders looking to get filled just below. Must frustrate the hell out of either TD or Canaccord, who are looking for the high 7's, to fill a large order.
Does this indicate impending news? I say yes, but what "impending" means is open to question. I would think that if we don't see something by tomorrow at the latest, then we wont get anything until after the new year. That seems like a long time, but after today there are only 7 trading days until the first trading day of the New Year.
I can possibly envision a slide later this week in to the high 7's, but really no lower. If no news this week, then we should get buying on the dip over the 3 trading days next week. If the volume does not pick up on any kind of dip, then TD & Canaccord are going to have to ante up sooner or later.
Joe |
