Re: Stock charts/ALYD/Thinly traded stocks
I appreciate your taking the time to chart ALYD. I looked everywhere for one but was unsuccessful. Perhaps you could e-mail me the data?
Here is my question:
Common sense would dictate that when you make predictions from charts you base them on the "usual" daily volume. In studying Y2K stocks, you get these crazy volume swings when the stock is "discovered" by the masses. I presume that positive volume (ie people are looking to buy) can get stocks out of ruts.
Accordingly, for a stock that trades in the sub 100K range, like CSGI, ALYD, DDIM, ACLY (usually), what kind of volume does it take to change a stock's direction?
I am testing the adage to buy on rumor and sell on news. ALYD has stated publicly that they are beta testing with 5 Fortune 500 companies. My guess is that as soon as one is made public, it will bring wide attention to a company that already has contracts with the likes of the National Institutes of Health (NIH) and Traveler's Insurance. My observation is that people overreact wildly to Y2K stocks (ZITL has 5 million shares traded by mid-day!), so I feel good about ALYD even if it does go down in the short term. It would make me feel better, however, if I knew what type of response to hope for.
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