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Gold/Mining/Energy : Trump's 12 Diamond Picks, Discussions Limited -- Ignore unavailable to you. Want to Upgrade?

To: The Fix who wrote (993)	6/29/1998 10:09:00 PM
From: Mikey	Respond to of 2251

No, no specific signs of entry into WSP prior to recent announcements. Already in simply because it was at a promotional/cyclical low. That's pretty much the only place I throw conventional TA to the winds with penny stocks - buy at 52-week lows if it seems they have prospects for a good run up. I would never buy a big board stock at a 52-week low, but then I'm a momentum trader as opposed to a value investor in those companies. Added to my position after the breakout, at 1.16, which was after the news (instead of taking profits). Time will tell if that was a good move or not. As far as TA in general is concerned, I have seen multiple other examples in other companies where, for a time, companies (penny stocks) follow the rules to a "t". I think that the rules apply when a large number of investors are involved with an issue - the sum collective of a large number of investors (supply, demand, fear, greed, panic, news, hope, etc.) as reflected in price/volume charts and therefore patterns seems to follow the same basic patterns without regard to the size of a company, probably because even though companies vary, human nature stays the same. But that's just an opinion, and far be it from me to presume that I have all the answers about anything. Nothing personal at all, I guess we should just agree to disagree on the TA-applied-to-penny-stocks point. I will concede that it's practically impossible to analyze thinly traded issues, and I don't try to. Thinly-traded issues are easily manipulated, but I think that sometimes the overwhelming involvement in very active issues is too much for even the manipulators to withstand, and it's during those times that I think the patterns become clear. There is a complete 5-wave rise to today's high, and coupled with possible resistance at 2, a 38.2%-61.8% retracement of WSP's recent rally to 2.04 puts a pullback within the range of 1.03-1.42 (and it doesn't even have to pull back that far). But it has to pull back to new lows, below 0.41, for me to label the overall trend as down. Of course, that level will change as more of this current rally unfolds. At this point it looks like there could be a consolidation here, followed by at least one more move to new short-term highs (above 2.04), OR this is the first small-degree rally in a much larger new overall uptrend. I think the next major rally will be at least a buck in length from it's starting point, and will go higher than today's high (if today's high is the end of the first rally). But that picture may change with time. M.