I was having conversation with a good friend of mine and he told me Cosco broke out today and that created an interest for me to study the operation of this stock. Between the period of 22/9/2010 to 27/10/2010, Cosco had been under a hidden accumulation phase for stronger price to come. For those who are using traditional indicators or other methods to trade the market, they would not be able to see this clearly or understand this phase. At first it looked like the market was having a huge correction, however under scrutinized observation, it was obvious that Cosco was on its high way to higher prices. How do i know? I will tell you if i ever have a stock course, it is not that clear cut and simple as it takes time for me to explain and for you to digest.
Once big operators had finished their purchased, Cosco was on its way for further up price as shown from 29/10/2010 - 9/11/2010. Once the target price was reached, the big operators knew that Cosco is a strong stock and they needed to purchase more, and so they took profit and flushed down the weak holders so that they could purchase more. Since big operators knew that this stock is a very strong stock, they are constantly checking for how much supply were there for this stock. They used different maneuvers to force the public into liquidation so that they could purchase more. This whole process is lengthy and a lot of time and effort is required. Trust me, their real intention is to purchase more of this stock because they know that it is a strong stock in the making.
So today you saw a breakout of the trading range of that huge area of accumulation? This is a real breakout created by the operators to lure the public into buying this stock. Can you see their real intentions? So today the public was in, and since they had accumulated a huge amount of this stock, they won't be letting it go all at once. They would churn more volume to create more public into this stock so that can slowly and quietly unload and take profits until there comes a time where it reached culmination and they would start short selling.
Check out this article by Collin Seow on his prediction on Cosco: http://www.sharesinv.com/articles/2010/12/31/trend-spotting-5/
For tomorrow and the next few days, i would wait for a reaction to enter a position in this stock. Do not chase, buy on weakness and sell on strength.
Ronald K
