We got a nice reversal signal today.
Reasons:
Candle that was formed is a Hammer at the bottom of a downtrend.
In fact it was a DOJI Hammer which is even more bullish.
iqc.com
why.net
Price is out of the Bottom Bollinger Band and RSI is under 25 (16.89 to be exact. VERY oversold.)
We are up against strong support at 5/8 which we have talked about ad nauseum.
Ultimate Oscillator is showing a Bullish Divergence.
Momentum has also turned, indicating that the downtrend should change.
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inre Acc/Dist.
There's been lot's of conjecture about Distribution of this stock.
If you are simply talking about more sellers than buyers, than YES this stock is obviously being sold more than bought.
That is NOT what I am talking about.
Distribution takes place when a stock has made a solid upmove and you start to see BIG volume with little to no movement in price.
Smart money is DISTRIBUTING their supply to meet any buying pressure present while taking profits.
With Distribution, the sellers are offering enough stock to meet all the buyer's demand, thus keeping prices in check. The seller is able to get rid of his shares slowly so as not to make the share price tank like it would if he tried to dump all the shares at once.
DISTRIBUTION IS A TOPPING SCENARIO.
Yes, there is more selling than buying in BCMD, BUT we have to look at HOW it is being bought and sold.
It appears that the buying is coming in big blocks while the selling is coming from the small fry which tells me that the big guys are using any opportunity possible to scare the bejesus out of the small guys and then buy up their stock on the cheap.
Lots of little guys are selling LOTS of their stock for cheap and a FEW (the "smart money") are more than happy to buy it up (Accumulating)
If 10 small fish sell 10,000 shares each, 2 big fish can ACCUMULATE 40,000 each, NOT make the price go up, NOT tip off the small fish and NOT screw up the bargain basement prices.
Net/net there IS more selling than buying and yes the price goes down, BUT the ratio of shares to shareholder is greater.
The big boys are more than happy to shake the tree daily, keep buying slowly as the price falls until all the week sisters are out of the game and they can start cooking the price.
This is why I'm seeing a discrepency in BOP, Moneystream and Ultimate Oscillator.
You simply can't use Market Edge for a read on A/D. By their standards if a stock price is declining they call it Distribution and conversely if it's going up they call it Accumulation. Not a very sophisticated way to look at it.
Since BCMD cannot be sold short I have to think that the naysayers are either pyschos like Mr. Miller with nothing better to do with their time than talk trash OR they are trying to talk this pup down and make off with some cheap shares before the good news comes out.
It wouldn't be the first time I've seen someone talk a stock down while steadily accumulating. It's especially prevelant in natural resource stocks.
I am awed at the amount of time put into senseless worrys.
Delisting? Absolute nonsense.
Reverse Split? More nonsense.
Insider selling? NO!
However, this is all ammo that can be used to "scare up" some cheap shares from the naive investor that aren't used to playing in the shark pool.
If BCMD was really in trouble, we'd be seeing HUGE volume accompanying the selling. We simply aren't.
We only have ONE thing to think/worry about. GOLD! When will we get it and How Much is there? That's the only thing I give a damn about.
Have a good weekend.
J.E.F.
BTW-I would have bet money that we'd have an extension on the earnings report. Not surprising in the least, but I'm sure that the permabears will make a big deal out of it trying to scare up some more cheap shares. |
