Roger: Today's LA Times headline states "Stocks Dropped Despite Good Profits". This is another illustration of what convention wisdom is worth. These so-called analysts haven't got a clue as to what's going on. I hate to sound redundant. But for the financial health of our fellow surfers, I repeat: profit has NOTHING to do with share price. It is the investor's EXPECTATION that drives the price. Profit implies past event which has already been discounted. Therefore, share price often drops after announcement. Expectation is the FUTURE stuff, and the investor's imagination can run wild with it. That's what drive the price up or down. Period.
NMPS declined on very light volume between 11:15 am and 2:45 pm. It dropped from $10 to $9,125 within 10 minutes on practically no volume. Why the speedy move? I believe the specialists are running out of time and they have to accumulate in a hurry before the good news hit or the general market turns up. It is quite encouraging that volume was light which underscored an important observation: NMPS shares had been transfered from weak to stronger hands, and longterm players REFUSED to unload. Roger, as I stated before, time is on our sides. The longer it lingers above the 200 DMA lines, the better its technical picture will look for supporting the LAUNCH. We shall see.
Relax, 1997 is not here yet. In an election year, every important financial move has been pre-planned for the benefit of the incumbent behind closed doors. Greenspan knows who his boss is. Do your really think he will let Hillary's traders tank the market and makes the voters feel poorer in November? Fat chance! What's more, many small cap stocks are already DOWN 50% or more from the 1996 highs, and they HAVE to recover, at least partially, between now and November to appease the bagholders so that they can vote in Clinton's landslide victory. For these reasons, I definitely believe that we have time to make some decent profit. Be patient and follow what the tea leaf tells you.
I will be in seclusion for several days so that I can fast and meditate in an uninhibited manner. If I come out intact, we shall chat again.
Life is good!
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