Monday, October 22, 2012

Oceanus - Top Volume Trapping?

The appearance of Oceanus in the Top Volume just leaves people flustered. It doesn't mean that if a stock appear in top volume, it's bullish. It just meant the BBs are either creating a honeypot to suck all public in so as to unload or it could mean it's ready to breakdown.

Look at Oceanus, this is one classic example where the stock appeared on Top Volume on 02/10/2012 and there after on 03/10/2012 it created a breakout to suck the public in. A lot of public were suck in to long this stock thinking it would breakout further only to realize days later that the BBs were secretly unloading bits by bits. As it continued to be liquidated to a low of 0.037/0.038, many were feared that it will go bankrupt and there was this one day on 05/10/2012 where the buy volume swelled up tremendously. My student alerted me and asked me about it, so I replied "it was just people queuing to buy, nothing to note." Think about this, the volume of the buy queue swelled up, why? It was because that was a con job to trick to public into thinking that this stock would broke out further so all would jump it.

Then on Oct 17th during the preview, I told everyone I longed 600 lots of Oceanus because I thought it was bullish. To my wildest dream on Oct 18th when market opened in the morning, I saw some weakness in the stock which caused me to liquidate again without hesitation. If I hesitated, the loss would be more dithering now.

My point is this, when something is not right, get out first. Don't think why or have any hope. Don't think of any cut loss or target price. Everyone has a diff threshold level when it comes to money. When someone is selling secretly, don't hope and think that the stock can go higher and vice versa. Willing and taking a small lost is always better than tying up funds in a scary stock which you could have offload and reload it to other counters which have more potentials. This is the spirit of a speculator.

Ronald K - Market Psychologist - The Big Speculator