Home Page : www.otcjournal.com
Email Questions or Comments To:
editor@otcjournal.com
To
OTC Journal Members:
 |
What A Massive Stop and Reverse
Looks Like- See CGYV |
|
I have writing about the challenges
in the current market environment quite extensively. Forced liquidations
by funds closing their doors are a big part of the technical picture. I
have read estimates suggesting 2009 there will be about 1/3 the current
number of hedge funds we have in existence today.
If you are watching CGYV today,
you are watching a classic stop and reverse chart. I have been calling
CGYV
a strong buy, but cautioning all there was likely more toxic stock for
sale in the market place.
It's not hard to figure this stuff
out. If you just take the time to look at the S1 Registration statement
the company filed this past summer, you will see a list of funds who participate
in the financing at $2.12 per share. I guarantee some of those funds have
been forced liquidators of their positions.
Today, based on the actions in the
market, I believe the forced liquidations have come to an end. The market
has absorbed the toxic supply of shares, and the stock made a huge move
towards getting healthy.
It was an absolute classic stop and
reverse chart. In the early going, the stock was trading in the $1.10
range. About 1 1/2 hours into the trading day, the stock traded
down on massive volume to a low print of $.90. It traded 300,000
shares in one hour, which is 50% more volume than the highest day
in the stock's history. Then, it turned around on a dime.
As I write today's edition, CGYV
is now up 20% on the day. It has now traded more than twice
the volume it has ever traded in a single day, and has broken to the highest
level it has seen since October 14th.
I believe today marks the beginning
of a major rebound phase in this stock. Here's my very short term advice:
-
If you already own the stock, don't
sell it now on the rebound. There could easily be some backing and filling,
but I believe there is way more upside.
-
If you don't own it and are interested
in the company, now is the time to get into the stock.
-
If you own a little, but don't feel
you own enough, pick it up now.
Remember, CGYV has recently disclosed
it will be presenting at both the Westergaard and Rodman Renshaw
conferences next week in NY. You have now witnessed a classic "stop and
reverse" chart. These are both a pretty big deal. Former President
Bill Clinton is giving the key note address on Monday morning at
the start of the Rodman Renshaw conference.
Market wise, the worst is probably
behind us. For CGYV, it is definitely behind us in my view. Look
for today to be the first great day with more to come.
Home Page : www.otcjournal.com
Email Questions or Comments To:
editor@otcjournal.com
|
