Last evening was a good session, why? Because after my sharing, some of us stayed back and went through some revision and we talked about the bearishness in Spackman. As we learnt how to use the CFD DMA to trade and short penny counters, this was one penny stock that was brought up on the screen.
Studying the min chart, there was much profit taking followed by distribution which was the key contribution to the sell down we witnessed now. Further studying the chart immensely, there was a huge wave of artificial buying which caused by retailers chasing the stock up on high price to only realized that it was sell down by the big boys. And how do we know? See the circled volume. It was reduced tremendously to virtually more than 1/4 compared to the previous volume which signify that demand was spent and weak. Today the sell down was very predictable but more importantly, we got the job done yesterday. :)
Ronald K - Market Psychologist - A Stock Market Opportunist
