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Small things that may add up. Despite the pullback from the Feb. 4th high, 1.On Balance Volume has continued to forge higher [bullish] 2. During the rally off $37 1/2, SFE broke through a trendline that was holding back rally attempts during the decline, and is now [barely] above that line [bullish] 3. Sentiment has improved markedly from a contrarian viewpoint, as even those recently bullish [immediately preceding VERT] are starting to exhibit frustration and concern [bullish]. These are just a few pieces of a much larger puzzle, but are reasons to give SFE the benefit of a doubt and stick with the buy signal @$37 1/2, until information develops to invalidate it. IF and I want to stress if that $37 1/2 bottom holds, prices would project much higher. The reason, is that during the normal pullback from the euphoric top, SFE would not have even gone back to its 50 day moving average indicating a substantial amount of underlying demand during what I have called the "hangover" period post VERT and in the absence of any announced rights or IPO [of ICG]. This is pure speculation at this point. SFEs price and emotions are not at an extreme either way, which makes the next 20% move more like a 60%/40% call. I do think the low price of SFE post VERT either has occurred or will occur in the next month or so. Assuming an ICG offering this summer, and an announcement this spring [my guess], the low will not be hit after the announcement is made. That gives a window of opportunity starting mid Feb. to mid March or April to accumulate for those so inclined. I believe SFE will take out its triple top before ICG. Just opinions and ruminations during a quiet period. Hope all are doing well. Mike |
