Volatillity

Both the TSX and the Vancouver have literally cemented indicators, (indicators have narrowed, along with candles, are shorter... indicating more stable intraday pricing) as opposed to the past volatility... which is good, and can be a bad thing when you see this display of narrowing.

Narrowing is a foreshadowing of change.

As for being good, it suggests a continued rise but the caveat is, when will the broad market bulls change camp? I suspect a lot of bears will be bulls when the shoe fits. I think a lot of bears who have changed camp will play the downside when they get the chance.

Undeniably, there is still a lot wrong with the economy that has yet to surface and with so much novice cash changed hands, (there is not much novice money to move in)it will likely be a market where professionals are playing professionals, and that kind of poker is sharp and calculated.

It is time to hedge some profits.. and buy the pullbacks...
Definitely consider some profit taking and frame an exit strategy in your mind....

This is a general scope of thought and certain individual issues if not over bought, may buck the May go away and impending volatility of the doldrums.

Caution should be ramped to a yellow alert LOL. Protect your bananas.

If you see some broad major spikes, think of a broad market top and a bullish consolidation shaping up for a swing and a reload.

The time frame, depending on what your into, is from here to the end of June and the closer to the end June, the more attention you should be paying to your holdings for a move to cash.

Holidays equal a very quick grinding halt to licensing issued by governments for projects,,,, Everybody goes on a two week vacation except the government who take a two month escapade on the peoples cash using up their spending accounts to head for faraway places under the guise of deserving perks for distinguished service, which could only be a legend in their own minds.

Another round of Zombie slings please.

GLTA Lostoutwest
Kenuck SmallCap Trader

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SCP.TO

Chart looks good for a move up ... but most of the crystal balling comes from being confident that the broad market rally is helping increase the odds... the fundamentals are awesome for the last period and show some seriously good management in times of stress during 2008. Not much chance of a dilution as they have gobs of cash, and selling under NAV.

Level II shows a consistent open gap of about 3 to 5 cents each morning and the trading takes place in the market (between the bid and ask), and little by little the bid is edging up to chase the opening ask.... which is getting away to the upside which is a bullish level II observation.

Asks are sparse and volume is low as it should be when the price hits support.

79,000,000 shares is good

Trend is up by many Yardsticks I use.


GLTA Lostoutwest
Kenuck SmallCap Trader

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A general note of various thoughts

The TSX and Vancouver are showing some bearish divergence in the indicators while the price still bullishly rises broadly. We could see a broad spike in some issues and I would be suspicious of chasing or wether they (issues) will be able to hold the gains unless they are very solid. This suggests a consolidation at the very least in the near future as we get into the (summer doldrums) territory of buyers who bought halfway down, who are looking for any chance to get their money back. I would suggest playing with very strong speculative issues from here on until Nov as... "Go Away in May", is a tradition bread into the crowd as much as the doldrums are.

If your playing pennies and juniors... really try to play the dips to reduce risk.
Stink bids and the like.

I hear there is some speculation we still have a good drop coming but I think only a major war will bring a crash and as a geopolitical consideration that will affect the market, look to Israel and Palestine or/and Pakistan as the instigators. There is a lot of bad potential brewing. It's too bad but it's true.

At the very least this whole picture looks to good to be true considering the bad news roaches still coming out. Where there is one roach, there is more.

I would hate to be the big boys and trying to figure out if they should believe their lying eyes and pile the cash in or risk under performing for the year and stay in the bear camp.

At least in the pennies if you pick on low floats and debt... You could gamble right through a war and come out ahead if you were disciplined and cautious. Pennies move on promotion (greed and fear) as there is no fundamentals.

There is a condensed portrayal of my trading attitude, and it is measured against the picks I bring to the board and list in the Favorites list.

PS: I spotted a poker pop and took a position in LGO.V @.095 .... Poker pops from that level don't pshyc out until they are over .20 cents sometimes.

Wish me luck!

GLTA

GLTA Lostoutwest
Kenuck SmallCap Trader

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Grandich

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Bollinger Bands are a popular technical indicator for traders to determine overbought and oversold conditions. In a range-bound market, for example, it works even better as prices travel between two "rubber bands," or like balls bouncing off the walls.

But using the Bollinger Band as a sole buy/sell indicator isn't very smart. It's why we also use &b (percent b which shows where these touches may likely be located) and candlestick signals to help call tops and bottoms. "Tags of the bands are just that —tags, not signals. A tag of the upper Bollinger band is not in and of itself a sell signal. A tag of the lower Bollinger band is not in and of itself a buy signal."

And if you try to use Bollinger Bands by themselves, you can get stopped out or worse as prices "walk the bands" with direction. Again, it's why we use %b and candlesticks, too.

With Bollinger Bands (plotted at standard deviation levels above and below moving averages), stock prices tend to stay within the upper and lower bands. So when the prices move above the upper Bollinger Band, are coupled with a bearish candlestick read (gravestone doji, for example), and an extreme overbought %b read is present, we expect a reversal at the top.

Bollinger Bands allow users to compare volatility and relative price levels over a period of time. They consist of three bands:

A simple moving average (SMA) in the middle. . .

An upper band (SMA plus 2 standard deviations). . .

A lower band (SMA minus 2 standard deviations). . .

Standard deviation, a statistical term that provides a good indication of volatility, ensures the bands will react to price movements and reflect periods of high and low volatility. Sharp price increases (or decreases) will lead to a widening of the bands.


GLTA Lostoutwest
Kenuck SmallCap Trader

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Grandich

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A Gorilla pick for the Summer Doldrums

SCP.TO Sprott Resources has been consolidating from a decent breakout, but I feel I can see signs, that with this good looking bear rally as a broad market backdrop, and, we like broad market bullish backdrops, because they tend to increase average returns when taking bullish positions, there is a good chance, that with the mind boggling fundamentals and noteworthy foresight of management to produce results like that, something can be said for good judgement, and as a trading stock SCP makes a great candidate to play the runs and dips on a solid speculation loaded with cash, as we ease into the summer doldrums. A hedge stock with potential to rise through the likely volatility is a key descriptive word.

Go away in May doesn't apply to this play.

Technically, the price is very low in a breakout pattern to the upside, and I see what I think is an easy, but, may be a slow 3 to 4 months 50% to 100% gain in relative safety during the expected doldrums whipsaw.

The one question that will pop into your mind is "Why is the price so low"?

Just good luck! Baby out with the bathwater. Not enough playeres in the market to cover all the bases.

The answer is, There have been too many other distracting quicker moves that the traders are playing, leaving us lucky ones to move in on the likely money rotation that will tend to feed the ramp on this up move. Momentum is the attraction out there and this play is a more conservative following, not fast, but, this stock charts extremely bullish for an early stage uptrend interrupted by the crash.

In Level II observations I can see what appears to be a diminishing overhead supply.

This is early observations, and I'm starting to play the dips off this consolidation and averaging in.

SCP is just getting it's legs under it to head back where it belongs and possibly higher... $4.50 plus.

For something to think about, check out the recent insider buys, and we are not talking small stuff.

Shares out = 87,000,000

This gorilla likes the chart and fundamentals.

We have made some updated comments at this link...
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GLTA Lostoutwest
Kenuck SmallCap Trader

National Post

Grandich

CBCnews

Please read our Complete Disclosure