Kaneb Services (NYSE:KAB) - Back on January 11th I alerted TNL subscribers to the following:
"During this recent move, and continuing through Friday afternoon, my quote service showed that there were buy orders for a substantially larger number of KAB shares than were being offered for sale. Although the market price for KAB dropped 3/16 during the day, the buy orders continued to be substantially larger than the sell orders, and ratcheted down with each move of the market price."
"This suggests to me that there now is newly developed significant demand for KAB, and that this demand is coming from relatively sophisticated traders with deep pockets soaking up any panic selling, ready to satisfy anyone else's stop loss orders. If so, this tells me to ignore the charts - this move may not be over yet."
As you may know, KAB ran to $6.00 on January 21st, but has subsequently sagged back to its close yesterday at $5.19. During this subsequent period, "the sophisticated traders with deep pockets" were not in evidence.
Well, it appears that they are back... KAB is up today on an increase in volume, and buy orders have generally outweighed sell orders all day.
Bob Davis
The Napeague Letter
napeague.com |
