Potential double top as the trend has been pretty much extended already.
Thursday, May 5, 2011
GLOBAL-ESTATE RESORTS, INC. (GERI)
Weekly line chart:
Potential double top as the trend has been pretty much extended already.
Potential double top as the trend has been pretty much extended already.
Gaps: Trading gaps.
FGEN: Gap acting as support. Gap is not filled.
PNX: Fade the gap. Gap filled.
MPI: Filling the gap.
SMC: Gap down. Fade the gap(?)
This post only shows how gaps act. Some doesn't get filled and act as support(FGEN). Some are filled a few weeks after building a base(PNX) while some gaps don't get filled outright. Sometimes, it takes a gap a really long time to get filled(MPI).
That being said, no one can really say how the gap in SMC would act. One thing is certain though, act when the opportunity says so. Not because a blogger says so or forum members say so but when your trading system says so.
Theory says that all gaps are filled, sooner or later. They say it's nature's way of things. :))
Once the gap is filled, price action resumes the direction of the gap.
*So if FGEN trades beyond 21 and the entire market crashes back, look to buy at 10.40-10.70 :)) (Just kidding).
PNX: Fade the gap. Gap filled.
MPI: Filling the gap.
SMC: Gap down. Fade the gap(?)
This post only shows how gaps act. Some doesn't get filled and act as support(FGEN). Some are filled a few weeks after building a base(PNX) while some gaps don't get filled outright. Sometimes, it takes a gap a really long time to get filled(MPI).
That being said, no one can really say how the gap in SMC would act. One thing is certain though, act when the opportunity says so. Not because a blogger says so or forum members say so but when your trading system says so.
Theory says that all gaps are filled, sooner or later. They say it's nature's way of things. :))
Once the gap is filled, price action resumes the direction of the gap.
*So if FGEN trades beyond 21 and the entire market crashes back, look to buy at 10.40-10.70 :)) (Just kidding).
SMC SMC SMC
SMC closed at 153 before when it was range trading around 150-180 range when I decided to test my system if it could be used for price prediction. This is done on the PSE trading game so there's no real money involved. Okay, now that being said, I put up a buy stop at 150 which got hit last 4/12/11 before closing at 153 that day. I think it was Livermore who said that if the price goes your way right after you put up a position, it means that you are on the right side of the market - which I believe.
Then, the company decided do a voluntary suspension on the issue the next day "to avoid manipulation". Clearly, that's a very noble intent as they were trying to protect their investors. Or so they said. A few days before the voluntary suspension was lifted, they finally announced that they are going to sell their secondary offering at the lower end at 110. That being said, it feels like they did exactly the opposite of what they said. They wanted to avoid other people manipulating their stock because they wanted to do it themselves. Lol.
Anyway, enough of my personal opinion. Let's look at the chart instead:
Before the suspension, range trade 150-170(180) with stop loss right below 150(5-10%) depending on one's risk appetite.
Going -30% after the suspension was lifted, what would be the right thing to do. Would you still hold? I don't know. This is the first huge-gap-down-case in my trading career. Daig pa ang basura stocks.
I think, the best way to deal with this(for people without position in SMC) is to fade the gap. After the dust settles and the price stabilizes, I would wait for a buy signal before putting up a position and sell a little lower than 150 so I wouldn't be with the people who still have 150+ wanting to get out. Pwede din kahit 10% lang masaya na ako :D
Then, the company decided do a voluntary suspension on the issue the next day "to avoid manipulation". Clearly, that's a very noble intent as they were trying to protect their investors. Or so they said. A few days before the voluntary suspension was lifted, they finally announced that they are going to sell their secondary offering at the lower end at 110. That being said, it feels like they did exactly the opposite of what they said. They wanted to avoid other people manipulating their stock because they wanted to do it themselves. Lol.
Anyway, enough of my personal opinion. Let's look at the chart instead:
Before the suspension, range trade 150-170(180) with stop loss right below 150(5-10%) depending on one's risk appetite.
Going -30% after the suspension was lifted, what would be the right thing to do. Would you still hold? I don't know. This is the first huge-gap-down-case in my trading career. Daig pa ang basura stocks.
I think, the best way to deal with this(for people without position in SMC) is to fade the gap. After the dust settles and the price stabilizes, I would wait for a buy signal before putting up a position and sell a little lower than 150 so I wouldn't be with the people who still have 150+ wanting to get out. Pwede din kahit 10% lang masaya na ako :D