Almost everyone today in the trading lab have noticed the breakout in Cosco today and there was no surprise for me since I knew the reason for this long waited breakout. Cosco's breakout today was erratic and sporadic where in my opinion, in the short term trend, big operators had unloaded a great deal of stocks to the public. This is so typical by looking at the way they took the stock to a new high and how they managed to operate effulgently. A real buying doesn't looked like this. It involves absorbtion and multiple test before higher prices can be materialized.
The increased of supply for Cosco in my opinion is heavy where operators are looking to actively supply this stock to the unwary public's demand. I might be wrong and it might go higher tommorrow, however based on my analysis and the sporadic action of Cosco today, i strongly believe the upside is limited in the short term. This sporadic action is like a rubber band being stretched to it's maxixum length and then all the energy was suddenly released. For tomorrow's action, I shall monitor how much more demand is entering Cosco before taking a position on the opposite side or maybe supply will present itself?
Ronald K
