The manipulator (buyers, block traders and boiler room operators who bough it 10 – 30 cents) took FMNA up on Monday, by buying from each other to create illusion of demand.
In stock market the higher the price, more the demand by public.
Once the stock moves closer to supply zone (those who bought between 1.75 -2.00), please see historical price for supply, the boiler room operators are here to sell not buy, the plug is pulled.
This type of action is called, Secondary Reaction Rally. It generally lasts two to three days and is always sharply against the trend for the past few days.
Today’s down move creates losses for all those who got on board yesterday and in the morning.
Stock generally moves up in the early morning on low volume, then sideways and slowly moves sideway and slides down on high volume.
On Friday July 26, 2013, the stock will end up around 1.35, most of the buyer holding at higher price, holding the bag.
Imagine you own an apple orchard with price dropping, and a sever storm coming. In an auction you hire 10 buyers from your family, who bid when you wink, but other innocent bidders should get into the trap.
Everyone buying is looking to sell someone with higher price, for which there are not many buyers left, or are exhausted at higher price
Hey novice, tell us more about ur apples. Are they red, large, firm and juicy or pale, flat, mushy and squishy? Please let us know so that we can figure out the quality and price of your apples
Monday morning quarterbacking after the fact trying to scare out the novice...You heard a clever story about a storm and selling apples and thought you could apply that here. The only storm that is brewing is the one taking fannie to 5 plus shortly.
A rally by definition is an upward trend. It did not end up, does not matter what happened intraday. If it closes down it is not a rally.
Secondly, reaction rallies by definition happen after natural rallies. Also ending up several consecutive days.
You contradicted yourself by stating it started with manipulation and ended with manipulation, hence no natural moves meaning no natural rally which means no reaction rally.
Either way your prediction on Friday may be correct or not, coincidence at best. 2-3 days from now means nothing to long term holders.
I say let the traders have their fun, pay higher taxes from short term gains if any. The real investors are here to stay
You right carolyn, the MM are buying and selling every day to persuade the price up or down. When one MM is selling you bet your xxx another MM is buying ! That's what I say if people don't learn how the market works , wasteing their time, the Market even uses tradeing to form the charts to fool US ! No matter what the market doing , they always change their strategy several times a day before it ends up where they had it planed and programmed gl
Unless someone pushes a wrong button on the trading floor, 1.65 and not 1.55. You have zero knowledge of stock market. You will pay a heavy price for learning.
Boiler Room Movie will help you.
there is no chance of a short squeeze tomorrow now thats all... computers pulled it off and shorted the 1.72 level one last time. your theories and other nonsense are incorrect
Ok, I'm following however there's been one day of high consistent volume, followed by a day of high volume in am and no to less volume in pm till close. These seem to go against a bit of your hypotheses or knowledge. Just curious. TYA
Low volume slide creates lack of interest, so fictitious volume is created, by 5 or 10 traders sitting in a room. Quick 10 to 20% profit greed bring in the losers.
Ask yourself these questions,
1. Why did the stock move up sharply in one direction?
2. Why the trading was not uniform, buyers and sellers, and up and down a few cents.
3. There is my message today and yesterday, about secondary reaction.
4. The same thing happened to American airline.
5. Please see the price and volume of CO
The following is an excerpt from my 820-page research book,
Colby, Robert W.,
The Encyclopedia of Technical Market Indicators, Second Edition,Colby, Robert W.,