| PHASES of A TYPICAL SPECULATIVE STOCK
1. PUBLIC OFFERING - Often the stock settles back awhile if market is weak.
2. TAKE-OFF and MARK-UP Insider Buying and
Flashy, Eye-Catching Advance,
Borkerage Sponsirship, Professional and Institutional Buying.
Selling and Skepticism.
3. TOPPING OUT: Insider Selling, Hype and Bullish
Publicity, Public Buying
4. COLLAPSE: Public Bargain Hunting Buyers Are
Short Selling. Institutions Dump
5. BASE RE-BUILDING: Public Panic and
Professional Traders Dominate.
by William Schmidt, Ph.D.
PUBLIC OFFERING The best trading system for DRYS at this time was based
on the trends of the
TigerSoft Closing Power.
But 50-day ma is violated to upside and Accumulation Index turns
positive. After a big
drop, this is bullish. But there is still lots of overhead supply from
the buyers at 20 a
Professionals continue to dominate the stock in this period with
short-term Buys and Sells.
3. Topping Out4. COLLAPSE
7) Tigersoft's Day Traders' Tool diverged
downward from the stock's upward price
action in the first half of 2008.
8.) We would use breaks to the downside of the Closing Power uptrends as
points to Sell Short given so many bearish cconsideration.
Day Traders' Tool diverged downward from the rallying prices
in the first half of 2008.
This extreme divergence warned of wxtreme price
weakness ahead. (This tool is our creation and is explained in the Help routines