Nam Cheong started to suffer selling now as predicted in my early morning top volume scan when I mentioned stocks will suffer selling in the later part.
http://stockmarketmindgames.blogspot.sg/2015/10/top-volume-scan-949am.html
While making that prediction and analyzing, my assistant also gave a sell call to all clients who long Nam Cheong to book profits to avoid suffering reactions. This service is customizable which I will share more tomorrow.
http://stockmarketmindgames.blogspot.sg/2015/10/nam-cheong-customize-your-service.html
Now comes to the part on why did we gave a bearish signal in Whatsapp? Below are the Top 3 seasons.
1. The entire market is sluggish as the bull is tired and stocks are moving up very bleakly with no power. With that in mind, the amount of activities and volume generated is not going to be strong and hence a sell call.
2. The high volume breakout as circled in the 5 min chart revealed that the Big Boys were unloading after all the open low close high breakout bar. Big Boys use this strategy to trick retailers to go long while they unload secretly to the unwary public.
3. And finally, the stock did not outperform other penny counters today and did not appear in Top Volume with vibrant activity. Instead, it was hiding at the back when sellers piling up in the queues. As illustrated in the diagram, every time where there is a breakout on retailers chasing, the stock would suffer sell down because operators knew how retailers love rising price, contrary to buying on hidden buying.
Above is the top 3 reason on why Nam Cheong is a sell. I will share more tomorrow on how to spot just before the sell down and how to buy before the breakout! Thank you for those who registered. A few more seats left before full house.
Ronald K - Market Psychologist - A Stock Market Opportunist
