I had been watching Yanlord's activity everyday to deduce how it would play out since there was a public massacre and a selling climax during the June period. During that time, everyone was throwing and liquidating this counter and I knew an opportunity to trade from the long side could yield attractive profits. After that period and in view of the current situation, Yanlord is currently in a major trading range. This trading range tells me it is in an accumulation mode, and a further downside could be possible before a true real uptrend manifest itself.
The low recorded for yanlord was 1.11 and if it does really break down further, it increases the likehood of a major bull campaign. However, if it does trend higher from here onwards, that would be fine too but that could mean more distribution to come. Whatever the outcome is, we shall watch it's progression each day to determine if the bull/bear wins the battle.
Update 15th August 2011, 00:37AM
The day came and Yanlord broke down further like there was no support. I was reading the forum and some shortists were trying to short this stock to bring it lower when they got a reject order with the following remark "rejected with a remark " company limit exceed" ." Now the question is, would it breakdown further? It looks like there are still some persistent supply left but not much, however I would need to continue to watch it's action for the next few days to determine if a bull campaign is intact and if supply is still heavy on the downside. Finally, since those who tried to short cannot short, the stock may be a better buy than a sell. Shorting Yanlord now is the taking of an undue amount of risk.
Ronald K
