Saturday, December 22, 2012

Rowsley - An Houdini Act

December 19th 2012, a friend of mine SMS me about Rowsley. My reply to her is not bad because in my personal view, the stock still has a second leg to go as the BBs together was performing a fake breakdown like what I shared in my previews. Dec 20th 2012, the stock did not move down much and held up quite well. That's where I believe it was all ready for a second leg breakout. During the period from Dec 11th -19th 2012, there was a state of confusion. Prices were flushed down, revived and then turned weak again. Traders/Retailers were all befuddled and guessing what would be the next game plan from Rowsely, up/down?

However on Dec 19th 2012, if one is able to spot fake breakdown, then the clue was about to be exposed. It's a good day to long and take a small loss if any. The risk is pretty low and the reward is high. Now, as a speculator, I am concerned about timing. One can give calls few days before Dec 19th and experience emotional imbalance because the stock was fluctuating up and down, testing your patience, mental strength and psychology. Moreover funds are tied up during contra period which could contribute to force selling after T+3 where profits could be eroded. If you are a contra player, please make sure you grab the essence of the timing element correct because you don't want to let profits turn losses. To add on, funds being tied up is a total waste of time because the money cannot be used to punt other potential stocks which have great returns.

So on Dec 21st 2012, Rowsley had a trading halt. Of course, I knew what went behind the scenes which was left untold to the public. Now, Rowsley had just performed a Houdini Act where I believe the trading halt was done on purpose so that the public cannot participate on the upcoming gap up when the halt is lift. My point is if you want to beat the game, timing is the most important element you need to grasp hold before you can follow their footsteps.

Ronald K - Market Psychologist - The Big Speculator