Selling OutFor every buyer there needs to be a seller ....
And what I found interesting in last weeks action was that there were only a few buyers of consequence (Canaccord and RBC) on the Wednesday kick off, while there were several sellers of larger amounts of stock.
This kind of activity is telling on several fronts.
Initially some may think it is impatience, grabbing what ever they can. While I think along the lines that "under 60c is a bargain" and that these buyers saw nickles and dimes as a distraction becasue they are buying it with dollars in mind.
This also tells me that a lot of smaller owners/traders are selling ... the less informed we will call them, and a new base of ownership is beig formed. This is vitally important for the chartist in me, I can see a broad base of sellers exit while a new group of buyers enter, which allows for a support line to be built and a safety net of sorts is formed.
We need to trade substantially more in this price range, but that can happen quikly or over a period of time.
The chart on this stock is second only to the quality of the product and the management, which is why I am not trading the stock but am a long term owner with dollars in mind!. (Yes, nickles and dimes are a distraction!)
Happy trading but in this case happier owning!
Mike!