A move from common to preferred (I guess could be considered dilution)
might show up as the price holding steady or declining in the face of rising On Balance Volume (OBV). OBV is cumulative, adding uptick daily volumes and subtracting downtick daily volumes from the total. Lots of trend indicators would be fooled by dilution. Seeing it on a number of stocks I'm following. But ya have to know about it, otherwise you'll spout off about the price getting ready to explode, because everyone's really accumulating...so FA must be played in concert.
Bad burns or lack of confidence shows up in weaker volume spikes followed by matching or heavy volume slides. I'm learning much from CNKT. It should've been more common sense than anything, but how long can you continue the obvious pennant spikes while maintaining a fair price? The weakness following them became more pronounced after each run. If CNKT trades in the near term between 2 1/2 - 3, I would say there's some confidence being built.
The revenue bleeding would probably refer back to the confidence issue. If people believe in the FA, it'll show up in price support or valuation of the stock.
I bought @ 2 5/8 based on the oscillators, the length of time in the pennant, and the price having stabilized around 2 1/2 +/- 1/8. What I didn't respect was that the third pennant bottom had fallen below the previous bottom, something the first two did not do, and which may indicate a trend reversal. Or, a fresh uptrend with a $2.50 base instead of $1.50.
This all sounds kinda freakish or hocus pocus, but it does help. My current problem is I'm spread too thin on the number of stocks I'm following. I'd do better really delving into 5-6, and really working on good statistical fits and beefing up my FA.
BTW, you mentioned hoping, something I'm having a hard time getting away from. I hoped the spike would resume, & go past 3 1/4, on the HD PR day. Hope killed me. The charts told me spikes are short lived. TA, predominantly, couldn't grabbed 20%. I let emotions get in the way. Once again I learn...never let a blackie slip away. I continue to watch for the next opportunity.
Bill S, no word from M Warehouse yet. Will try again tomorrow.
LB
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