Dave:
My feelings about CADE's chart are quite different. I don't agree, for example, with the TC2000's findings about "significant selling"--for the simple reason that CADE has come close to its average daily volume only once--Friday--during this post Oct. 27 downtrend. To me, this is downdrifting on failed inertia--which I find typical of the stock, and a good many others that sell for less than $10--rather than on some overbought condition.
I agree that support and battle-zone areas are $2.4-$2.5. The so-called "breakthrough" of those lines has to be taken with the entire salt-cellar, I feel, as it lasted for all of a minute, and for all we know might have been an old order, or more likely, an MM swooping down and vulturing off a 3/8 limit order--much the same way they inflated the 52-week high at 3 7/8, which is a bad figure that throws off many calculations, I'm guessing.
I feel that the guys making the market in CADE are real, real pros. When they want the ship nice and orderly for the walkup, you sit for days and watch the narrowest of trading ranges; when they want panic selling, they know not only how to get it but keep it modest. what I'm saying, perhaps, is that analysis of this stock might happen better through tape-reading than chart-watching.
Spoken, of course, by an inveterate tape-reader and a man stuck in a long position on CADE he wished he'd dissolved in the mid-$3s. Still, I have faith in the company and, perhaps more important, a belief in the ongoing boom period of the boom-bust cycle of this sector.
Sorry for the rant,
Ivan |
