SongCon's corner: Penny stock talks, T.A., a good website, article or good book

[songcon]

The question: what your think of viper resources Inc (VPRS)

VPRS compared with American Exploration (another oil exploration company) on a 6-month daily chart. They've made similar moves ( except the big spike in early of July by VPRS) and the net change in prices after 6-month is almost the same for both.

VPRS compared with DPTR (another oil exploration company) 6-month daily chart. They've made similar moves, and VPRS is doing better in terms of price loss.

From the ananlysis of the above 2 charts, one can conclude that nothing wrong with VPRS, its price has been going down to the same tune with of its junior oil exploration group, it actually does better. The price has been going down in the last 2.1/2 months, the good part is the volume gets smaller and smaller and this is a good news: It's running out of sellers very soon, that's why the RSI has turned positive, so is the MACD signal line (blue) crossed the red line.

Another good news is that there is a divergence between MACD and the stock price, MACD is up while the price is going down. This situation will change very soon.

Conclusion: VPRS is in good shape in my personal opinion of a student of the stock market. I hope you'll find my writing is entertaining, it's a penny-stock thing, please don't take it too serious.

 

[songcon]

Dec. 14, '09 - A penny stock with some good news today

It looks like AMFI will have a few more days to go with the good news regarding
in compliance with the equity requirement today

 

[songcon]

Day trading on GBG stock - So simple! Dec 19, 2009

[I]anyone out there know the reason for the large share transaction for GBG at Fridays close????[/I]

The price of GBG moves through the guide of Slow Stochastic. On Friday price of GBG started going down right after the Stochastic reverse its direction after 3 hours of giving out signals to inform that the bull is running of power through the 3 candles: A doji, a hammer, and a spinning top. Traders soon jumped boat right the negative Stochastic signal was generated. Since it had enough waiting time, the sale became strong after the confirmation

Below is a 10-day hourly chart of GBG, you can see that the crossing of the Stochastic line and its reversion triggered the move up and down of GBG. Isn't that simple reading and interpretation.

 

[songcon]

Repost GBG chart - Dec. 20 '09

Repost GBG with a better picture:
Follow Stochastic signals: Buy at the arrow, sell at the point of the "gun" :innocent:


The chart also tells me that from the RSI of 80+( the overbought end) , price of GBG will keep going down further in the near future until the Stochastic provides a reverse signal

 

[songcon]

Year-end "oversold" stories - Dec. 20 '09

UGNE went up from $1.30 to $1.90 with some volume increase but not enough
and price went back down to where it started. And from there it kept moving down
and lost more than 40% of the value on the very light volume, "market is not efficient"
obviously.

UGNE was oversold, there is a diversion between MACD and UGNE price,
Stochastic and MACD give positive signals on the chart.

The story of MBRK is almost the same, since late September to last week (mid. Dec.),
it lost 65% of the price on light volume. There were 2 heavy selling days last week
but the price did not have much room to go down, and there were signs of a turn
around as shown by the Stochastic chart, MACD and the green color of the volume.

It looks like the January effect that brings happiness to penny-stock players will
bring good news to UGNE and MRBK. Well, we just wait and see!

 

[songcon]

What about ABWAX, the friend asked - Dec. 21, 2009

The question is:

[COLOR="DarkOliveGreen"]what about abwax ????? THANKS TOM K.

made investment . short term. any suggestions[/COLOR].

My answer is: ABWAX (@ $10.79 seems to be in very good shape.
- It is crossing the 50-MA line
- Bollinger Bands are narrow to indicate the current upward move will be straight forward ( a non-volatile move)
- RSI index pointing upward, so attractive
- Stochastic gives a very positive signal
- MACD looks good.

This is one of the very positive chart that I've seen after a long time.

Of-course my guess has a chance of 50% correct. The thing is guess on:
VPRS ( on page 1) is good - up 26% today,
AMFI that I'd sold yesterday for $1.48 & $1.69 is going down today but it's still more than double of the price
when I mentioned it on Dec. 14,
UGNE and MBRK are up more than 20% for each (20 & 27%).

 

[songcon]

FLDR: 3 good signs and a gun - Dec. 28, 2009

Stochastic, MACD, RSI all lood good, a gun is provided to FLDR so that it will move above
the Bollinger Band middle line tomorrow, and the 50-MA is the next. Yes, it can do it :clap:

FLDR $4.21

 

[songcon]

DSCM, VIAP closed below lower Bollinger Band - Jan 03, 2009

One of the general rules of Bollinger Bands is that the stock tend to turn around
after it closes under the lower band.

For a strong stock with a standing up 50SMA line such as DSCM, I want to see
from $3.09 at the last price, where it will close after the 5 trading days of
next week. I would set up a 15% stop-loss on this one

The chart for VIAP doesn't have a rosy, strong look as that of DSCM but the diversion
of the price change and the change of MACD is significant and it's been in the oversold
area a little longer than the last 2 times that I had been closed under the lower band.

I want to see how much it will close at the end of next week from cho last price of $.20.
Stop loss is also set up for 15%

Source: Scan results from Stockcharts.com

 

[songcon]

AENY - Hold or sell? Jan. 03, 2009

Question:
ANY IDEAS AT WHAT PRICE TO SELL AENY?

From the 6-month daily chart we see AENY has 3 big run-up since September.
- The first one from the period: Sept - Oct. price went up from $1. to $2.
It gave back 50% of the gain in the following weeks. A new run up started at
the low point to $3, and it also gave back half of the new gain to close at
around $2. From the midle of December to now it moved from $2+ to $4.59
due to 2 good news, see below for the recent good news.
The chart shows that the strength of the price and the trading volume go
together.


Should we sell AENY at the strength of the market or hold into it ?

The 2 arrow showed that there was weakness developed on Friday but the
stock got back some strength at the end of the day, Stochastic is moving up from
the low point and Bollinger Bands are trying to move closer. It's more likely that
AENY will get higher at leat on intra-day basis.

I would try to sell at least half of my position at $4.85 or $4.95 and will sell the
other half on Tuesday.
I could be wrong on this but there will be opportunity yo get back to AENY at a
price ower than the current level, and that's what my tea leave reading says.

Here is the latest good news:
http://finance.yahoo.com/news/Americas-Energy-Company-iw-726490008.html?x=0&.v=1

 

[songcon]

Re: FLDR: 3 good signs and a gun - Dec. 28, 2009

FLDR closed yesterday at $4.53. It's hitting the upper Bollinger Band, time to cash in the profit of 7.6%

 

[songcon]

WYN: I got in @ $16.....does it have some room to run up some more or should I sell i

[COLOR="DarkSlateBlue"]A member asked:[/COLOR] WYN Price Target.....thru August2010.....any insights???

[COLOR="RoyalBlue"]I got in @ $16.....does it have some room to run up some more or should I sell it ?[/COLOR]

Sell: I don't see any valid reason for selling WYN right now, why sell a winner ?
Currently, WYN is in the overbought territory (BigCharts) or about to be if you follow
StockCharts.com, but the damage or the correction to the price is either going to be
small or none. Here is my reasoning:

From July through October, if you buy when the brown line of Stochastic crossed over
the blue line (the brown line crosses the blue line). See the 4 green lines that I
highlighted, and sell when the crossing is reversed - See the 3 brown lines.
Since the upward trend-line represents by the 50 day moving-average (50 SMA)
is strong and getting more solid through time and consequently, the rule on Stochastic
overbought and oversold also seems change, 2 recent overbought signals
registered by Stochastic chart showed at the level 80+ did not see much of any price
adjustment other than a very minor one.

WYN could have a minor adjustment down to the center line of Bollinger Bands which
is the current support line. I would rather add to the position if the stock hits this
line

WYN 6-month daily chart

WYN should keep moving upward or hit the support line at the center of the Bollinger
Bands and get back to the upward moving again. That's my projection

WYN 6-month daily chart

 

[songcon]

How COINZ look like in the near term ?

The friend asked:
How is the prosperity of Converted Organics shares ?

By looking at the 6-month daily chart of COINZ, I would assume that there
is a possibility of a minor adjustment on price in the next few days, but it
would be small if there is one. Stochastic chart shows that COINZ is getting
higher-high and higher lows on the adjustments.

COINZ did not have a party last January but one year before, there was a big
party. The reward seems to be very high in comparing to the doward risk

 

[songcon]

Re: Higher high; Higher Low

Hi,
I have searched for answers on net before I have asked this question here but no luck. Can someone explain to me in plain english how Lower highs and Higher lows look like on chart please?
As far as my understanding goes Higher high happens when uptrend candlestick closing higher than previous candle (no matter how long shadows are or am I wrong?). With lower lows the same story only when downtrend occurs. But for some reason I cant imagine Lower highs and Higher lows. Is there any good website with chart examples for this set ups?
Thanks in advance.

In the last posting in my column, I mentioned: Stochastic chart shows that COINZ is getting higher-high and higher low to concluded that COINZ had more strength to keep going up despite the shooting star which is normally a reversion signal and a hanging man right after the shooting star. The last 3 tops of the Stochastic had gotten higher and higher, so did the 2 bottom of that .

This is one of the techniques that use the oscillators to project the near term move of the stock since the general rule is: In an up-trend, if price makes a new High (a higher peak than the last) so is the top of the Stochastic chart...

I don't know if my explanation is clear enough.

The green lines showed that Stochastic got highe high and higher low.

A lucky bullish call, the stock got decent gain the following trading day. It looks
like COINZ would try its luck again tomorrow

 

[songcon]

Buy Stocks on the strength of the group - Jan 22, 2009

Yesterday was a big day for the small local banks and saving and loans that have
exposure to the real estate loan mess. Most of them gain more than 30% whie the
Dows lost 200+ points.

I select this list to see how much I would gain after the next 3 trading days if I put $1,000
on each of the following small banks stocks:

AMFI, CACB, FSNM, FTBK, IBNK, PCBC, STSA, TAMB, TSFG

The respective closing prices on Jan 21, 2009 of these stock are:
1.07, .85 , .78, 4.99, 1.15, 1.59, .849, 1.33, .74

 

[songcon]

PRST is ready to move to the upper band - Feb 16, 2010

PRST closed on Friday @ $2.71

And this is my candidate for a short:
Price made new high, volume is light, the last candle is a doji at the oversold territory,
and Stochastic is pointing down already

 

[songcon]

Is ZBRA a good stock to buy ? Feb. 23, 2010

do you recommend to buy this stock ?

My thinking is:

ZBRA is under the overbought situation where it needs to digest the gain,
its price will be adjust some before the good timing for purchase arrives.

Its relative strength is turning down, so are Stochastic and MACD signals.
The Bollinger Bands are wide open due to the above situation.

It seems like ZBRA would have at least one week to resolve its current
overbought situation, and I hope you understand my strange vocabulary.

Good luck

 

[songcon]

#17: Bought PRST & AMFI today - Feb 24, 2010

On December 14, 2009 I wrote:

 Dec. 14, '09 - A penny stock with some good news today
songcon started this thread It looks like AMFI will have a few more days to go with the good news regarding in compliance with the equity requirement today

Only 2 trading days after the posting, I had a chance to get out "
AMFI at the gun" for a very decent return. I got back to it today, lost 2 pennies per share so far, but I believe in this company and I'll keep some of my gain (if there is any) in shares.

PRST: I'd posted a pointing chart last week to show that MACD has been a good
indicator of PRST movements. Now I've found out one much more simple
fact is that in the last 8 months, whenever the price of PRST crossed the
20-SMA line, stockholder had good payday. So I bought some today, and
it worked very well for me - so far

 

[songcon]

RICK: When to sell this one ?

Question: When is best time to sell Rick?

It's in an overbought situation, RSI = 78.45, Bollinger Bands are wide open, awaiting
for votality in the days ahead.

In the similar overbought situation in Jan., the price retraced to hit the 20-SMA and
reversed its direction and moved upward again. This time the Bollinger Bands
are opened much wider, the volatility would be higher and the 20SMA might
not be able to serve as a support level.

Since RICK is a strong stock, I would not sell all but only one half or two-third
of the holding and waiting for a chance to get back when the Stochastic chart
gives out the new buying signals.

See what happened when the Bollinger Bands are wide open.

This is on the list of
the overbought stocks with a decreased RSI, we can see the difference the width
of the Bollinger Bands make the difference on the reversion of the prices

http://stockcharts.com/def/servlet/SC.scan?s=TSA[t.t_eq_s]![t.e_eq_n]![as0,20,tv_gt_40000]![bs0_lt_70]![bs1_gt_71]![bs2_gt_72]![bs3_gt_73]

 

[songcon]

Re: SongCon's corner: Penny stock talks, T.A. etc . . .

The question is:
What is next for EUBK?

My answer is that EUBK still in the process of giving back some of its recent big gain:
RSI, MACD, Slow Stchastic point to a downward trend. The price was closed under
the 30 & 50SMA (Somple Moving Average) is another bad sign, there is only one thing
that moves up which is the volume, too bad it's a wrong timing thing. Volume keeps
going up on the down days is a sign of weakness of the stock price.

Wait for the price to turn around and closes a few % above the 20 or 30SMA or use
the 50SMA for a more safe bet.

Look at the chart you can see the advantage of using the 30-day moving average
as a guide to select your move, getting into the position in when it moved above the
line, and get out when it moves under. It's just move under the line on Friday as I
mentioned earlier.

Is it a valid reasoning to use last year scenarios to project the current situation that
includes a very strong up turn. Yes, I might be wrong on this but a few months ago
I did see the chance of the risky local banks will have some good run, and it's only an
anticipation game and I was correct.
At the end of Jan, I wrote:

I select this list to see how much I would gain after the next 3 trading days if I put $1,000
on each of the following small banks stocks:

AMFI, CACB, FSNM, FTBK, IBNK, PCBC, STSA, TAMB, TSFG

The respective closing prices on Jan 21, 2009 of these stock are:
1.07, .85 , .78, 4.99, 1.15, 1.59, .849, 1.33, .74

It's the message # 14 on page 2 of this topic. If I had written that I believe
I would make good money in the 3-month period I would feel great right now .

Here is the link that you can see how the names on the list moved up like crazy,
and moving down in a very spectacular way especially the first 6 names on the list

http://stockcharts.com/scripts/php/...ibnk,pcbc,stsa,tamb,tsfg,ubwk,fnbn|C|A12,26,9

 

[songcon]

How traders follow the smart money

Please roll down and read the lower part also

I reviewed the list of most advanced stocks on Friday, in the total 5 stocks listed,
I'd found that the institutions have increased their holdings on the 2 on the list,
those are: FTWR and SUPR, the holding increased by 19.5% and 10.75% and their
price increased by 18.5 and 23.5% respectively. This is on the day the market
barely moved.

I used the database of Finviz.Com to screen out the 20%+ on the last report, I
tried the next level at 10%+, and the lowest level at >0%, iI added 10% earnings
growth rate of 10% to limit the choices.

I eliminated those that have been shown on the earlier list and have a list of
of 12 items. They did reward the buyers with sizable gains on Friday.

The changes in the last 2 columns were taken from Microsoft Money:
http://moneycentral.msn.com/ownership?symbol=supg
and ETRM has conflict information between Finviz.com and Moneycentral.
It looks like Moneycentral is one step behind, the after hour trading of
ETRM has wiped out the lost. It is digesting the big gain due to the good
news at the beginning of the week.

Conclusion: Let the smart money do their own research and go behind
them to get the shares and you get good gains without any sweat