RRM.V

Ross River


GLTA Lostoutwest
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URC.V

URC is not the only stock that is taking a beating... The whole broad market consisting of the TORONTO and CDNX, not to mention umpteen other indexes have been taking a bath for the last 15 trading days. Canaccord dumping URC shares at .32 cents, and following up was probably insider insight to the coming broad market flush. They certainly demonstrated loyalty unto themselves, but having seen their lack of ethics before, (my Opinion only), when it becomes a situation for turning their luck into positive percentage by abusing their ability to practice price manipulation with thinly disguised self right to protect their wealth, is definitely IMOP bordering on outright criminal activity.

They have money and leverage to sway the trend of many small Caps.

All of their 2010 picks have seen the same type of price movement, maybe just a coincidence due to the sentiment type of element share pricing, but just as likely could be due to market complacency and lack of initiating the effort to do their own due diligence, market players relying on Canaccord to promote strength and then Canaccord selling into strength using whatever means available to make a profit.

Just based on professional ethics regarding price bashing by dumping huge amounts of shares, precipitating a stock price plunge, is highly unethical on their part at the least, and displays a high disregard for the so called responsibilities they claim to be practicing as stated on their website. They could be even naked shorting which could take this price down to some really lower levels.

Death spiral financing and/or Naked shorting is counterfeiting and selling stock shares by way of loop holes in the method of reporting and covering the sale that can only be uncovered by a forensic investigation. A really slippery slope with no motivation from securities commissions to go after it in a meaningful way. (again just my own opinion).

Do some googling on Canaccord... there is some interesting reading that uncovers poor ethics admission by settling out of court, some issues that suggest alleged fraudulent activities on a grand scale.

On the flip side.... URC is a stock that is not likely to be cursed by the hated reverse split anytime soon... money in the bank... drills turning...and soon the price will be just right for taking a position, is not a cast vote for appreciation of Canaccord's involvement... just a recognition of one of the dynamics of Small Cap speculation.

The market has a short memory and that is what Canaccord feeds on... it also doesn't say much for URC management for not taking an interest in potentially unethical behaviour regarding their stock. Regardless...

Keeping in mind that speculating in Small Caps is an exercise in anticipating fear and greed sentiment, moving price from over bought to over sold in rhythmic patterns is normal course, does not take the bitter taste away...

Still..... if the securities commission doesn't care, you should if you can, and have the will, take advantage, as you will certainly be in a position to buy low, not the way I would have orchestrated, but then truthfully I don't have deep pockets, or tools Canaccord has.

GLTA Lostoutwest
Kenuck SmallCap Trader

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6 indexes I watch

Pretty dismal performance... I can't say I've seen more than 3 half good looking days out of the last 15 trading days!

GLTA Lostoutwest
Kenuck SmallCap Trader

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If you see the hand... click on screen shots to enlarge them.

Here's an example

Of a busy Level II and a whopping float ... A reverse split may not occur, but I like to see floats under 80 million fully diluted.

I will take further dilution, but not start with dilution over 100 million on an unproven penny stock unless they are fundamentally superior in some way with a couple of cases in mind being Paladin or Bombardier who have very large floats.




GLTA Lostoutwest
Kenuck SmallCap Trader

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SSE.V

If you see the hand... click on screen shots to enlarge them.





Support should hold up over .06 cents, likely averaging .07 to .09... Level II is pretty under crowded for a penny play. Not much fear of a RS... book of.29... recent news has suggested this stock is positioned for promotion, but broad market temporary conditions have thinned the crowd of speculators, making this a longer term core position for speculative penny play considering the Pinetree buy in.


GLTA Lostoutwest
Kenuck SmallCap Trader

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Sneakin back in

This is premature, but demonstrates lack of motivation by fear with sellers holding off not wanting to take the loss by selling and gapping to the bid for small bids, thereby chasing the bid down increasing losses. With low volatility by way of low trader supply the trend is relatively stable. Backfill is inevitable and builds support.

As the selling pauses, everybody gains confidence and the uptrend resumes eating away at the limited supply.

Notice the gap is .015 which is considerable in this case and small bids are creeping into the main gap range. This will produce a teardrop effect. Lack of paniced sellers and evidence of cautious bidders... A very good element for early positioning.

Fold in some of the mentioned market motivators and the potential for some early positioning before exuberance takes on meaning.




GLTA Lostoutwest
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The Markets

One of my favorite quick loading chart types is candle glance...



Looking pretty shakey...!





GLTA Lostoutwest
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Paladin.TO

Is so low and having moved into a lower bollinger skid... We will not be buying anymore on bounces until we see a bottom, and that will likely have to incorporate some positive divergence, broad market support as well as a double bollinger touch bottom..

Wednesday was a selling day and IMOP the bulls were overcome... Broad market wise.

The price is dropping so low that from a need to buy point of view... any price lower than 3.65 is good long term value.

As a bull I don't see the need to take chances until the dust settles.

We will stay vigilant for a stop loss run of significance... I smell a panic selloff!

We are only interested in crosses when they can't hold the upside down anymore.

GLTA Lostoutwest
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Safe Play

There is no such thing as a safe play...

There is only speclative safe plays that can be worked with profitable success at an average rate that exceeds the average rate of loss. Win more and bigger ... lose less and smaller.

The thing we fear most is money loss that is unrecoverable... so we limit that potential as much as possible.

VGN has a low share float and a low share price.. This almost completely eliminates the worst of the worst... a Reverse split.

Cash in the bank and low Debt... Great gorilla in the sky.

This may not be the fastest way to riches, but if you want to play pennies, a core position for a long hold could surprise.

VGN has revenue... HUH! yipes it is taking royalties from previous successes and is now looking to build on keeping successes rather than JUST ROYALTIES.

Does this gaurantee success...? Nope! But it is a play that can be worked business like in the penny world.


GLTA Lostoutwest
Kenuck SmallCap Trader

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VGN.V

Watching level II I see what I describe as a lack of volatility. Volatility makes for some serious head snapping whipsaw. This stock price is rising on low volatility.The bids are sizable enough to infer interest, but don't suggest a broad sense of exuberance.

The best way to describe it, is to say the support is medium to light, building on sellers gapping their sells to the bid when the bid climbs high enough to be sold at market. As there is not a lot of supply from exuberance, these ripples recover quicker than one might normally expect as there is not much trader supply to turn the trend in panic (FEAR).

This is a desirable thing as this is a dynamic that keeps the trend up. This dynamic is an aspect of fear and greed. If you feel a need to sell for whatever reason, you need something to sell to... like a bid that is equal to the size of the block you would like to sell. If the bid block is not there, greed from taking too much of a loss makes you reluctant to jump the gap and take a sizable loss. Naturally greed keeps you from taking the loss. It is a universal dynamic.

The other side of the equation is the bidders who interpret this (LACK) of motivated selling as a bullish signal for all the wrong reasons. The bids reappear with bullish confidence as the selling subsides, and the trend continues the move with low volatility... The screen cut of the last 3 months demonstrates this trending dynamic.



TIP: Click the roller scroller on your mouse and hold for zoom... now turn the roller while holding, and you should be able to zoom the Level II screen capture.






GLTA Lostoutwest
Kenuck SmallCap Trader

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VGN.V

VGN has as very good looking chart and is barely up from .10 cents itself... cash in the bank... and up 12% over last month... 45M shares... Book .17 Low debt... Revenue 3.0M (FYR) Gas and oil play.... With these two plays, buying low is a good description for some under the radar fundamental clues.

Taking a core position and buying on weakness should curb any gambling urges you should feel a need to satisfy... Sentiment will move the price up and down for a long time with the long term speculative fundamentals in place here. Low risk penny play that should provide an opportunity for exuberance over .20 cents soon.


GLTA Lostoutwest
Kenuck SmallCap Trader

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Grandich

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SSE.V

My attraction to this stock is the price of .10 cents having been .08 on average previously...

Level II shows a block at .12 cents, but level II is surprisingly devoid of the heavy asks that make price upward moving slow going that sometimes accompany penny stocks.

I like the buy in by Pinetree Capital. That suggests some paper to wade through, however I like to associate with the price they came in at as a possible good sign that the issues that hold this stock back being the Nanuvit restrictions may have some relief coming, and if so it would move and hold above it's .29 book value.

68 million shares and it becomes a safe play to take a position and buy the dips with little fear of a RS. a price move to a 1.00 would make a 10 bagger.

Mentally a stock with a .29 cent book higher than it's price under .10 cents has some potential to move to book. Pintree is the clue, I'm sure they will promote and sell paper, but I think the Level II shows the potential to double easily from here.



GLTA Lostoutwest
Kenuck SmallCap Trader

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Lower Bollinger skid

There has been a lot of buy signals on this lower bollinger touch, and I have pointed them out, but the crucial aspect is that even with all the buy signals...  If the Trend is down and we have broken the support trendline.... watchout for a lower bollinger skid...

Here is another signal... Price moving to the right side, and below to the right of a dropping lower bollinger.

This is bearish and suggests a lower bollinger skid. Trade with caution.

Being that if the trend is down, and support.... being it was support previously, is now resistance, we must adopt a strategy of selling tops at resistance... it is highly unlikely that a price will survive above the newlevel of resistance for long unless it moves on news.

Trend up... look for continuations,... buy dips

Trend ranging... look for top and lower bollinger touches to play. Buy dips - sell tops.

Trend down... look for continuations,... sell tops (Short).

Watch for more crosses on level II means institutional interference..

GLTA Lostoutwest
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PDN.TO

The open was as expected... above the open of yesterday... but not as enthusiastic as I would have liked, but on the other side... not volatile, and the volume is low and should stay low... We need to stay above yesterday's open, being it is Tuesday and as well, all indexs are barely green.

OOOPs.. just saw a 100k cross... 44 minutes into the trading day... let's see what happens.

Keep in mind we have broken support at 3.60... The trend is down... Resistance is 3.60 to 3.65...



GLTA Lostoutwest
Kenuck SmallCap Trader

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Crosses

I'm sure you're aware of them, and if you use Level II then you may have seen them.

The reason they exist is... business as usual, but the question is... What is business as usual?

I have asked this question of many people who should be able to give a knowledgeable answer... however, all I have gotten is guesses.

Considering that normal non-professional traders don't have the option, then we have to rightly assume it is commercial traders.

The purpose of trading short or long is to gain percentage = dollars.

My experience with crosses is that... soon after a cross... I have almost always seen selling pressure on the ask. If I had the power to cross... I would cross in the position and timing of the cross I have seen many crosses occur.

Many Level II watchers speculate a cross indicates accumulation by commercial traders, but I think that such a speculation is flawed. Commercial traders are privy to insider information, and better technically superior trading tools.

Logic dictates they have already loaded up and are only interested in selling supply into strength, and have the skill to see a bounce and load up for dumping into bounces, or are parcticing short selling, or naked short selling.

GLTA Lostoutwest
Kenuck SmallCap Trader

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Mindset

I took another bite out of Paladin.

I'm using the left and right hand of the devil to make the call.

All the indexes I watch are green.

We saw a finish near the low of Friday 3.43 and an open of 3.50 Monday.

One of the characteristics of a bounce is the absence of a gap down on the following day, where the previous finish was a strong close down.

This absence of a gap down is a sign of bear weakness.

The close down on Friday signaled a mediocre day at best, with an expected open on Monday at/or near the 3.43, but a drop under 3.43 by the end of the following day(Monday)none the less. This open near 3.43 didn't happen on the open, we opened above the open of Friday. It is possible this ringed candle set may prove good for a trade into Wednesday or a longer view with a mental stop of 3.43... If we blast that, I can say for sure we will likely see 3.00.

I'll say that again... we Opened Monday above the OPEN of Friday. This type of price action reminds me of the last of a stream of teardrops. You'll probably have to think about that...LOL... The crying is over and the teardrops are drying up.

WE have pierced the lower bollinger two days consecutive before Friday. A pierce most always indicates a reverse motion. The ringed candle set will likely be tested soon and the conservative way to trade would be for the test to be showing a double ringed candle set bouncing off the turning up lower bollinger. This is not the kind of trade you should turn your back on.

We have a really oversold ringed candle set, relative to a long decline.

Looking good for a trade considering we are on the lower bollinger and have the left and right hand of the "DAILY" devil in position.

The RSI is placed, but we have yet to see a signal from the MACD.

Moving to the 60 minute time frame... we have the signals loud and clear.




I use the 60 minute to anticipate the daily.

I'm not saying this is a reversal, more so than it is a reaction bounce if it takes hold. The trend is down.

The characteristic of a bounce is that it builds on higher lows and to feel confident that we will see a higher low tomorrow... we need to see a strong close by the end of the day.

This candle forming needs to stay strong past the first 4 hours.

The next characteristic of a bounce is that we should open tomorrow above today's open at worst, and should close on a higher close.

In PDN.TO's case, On bounces... this stock has a habit of gapping up on the open and selling off to just above the previous day's close and shaping a lower shadow... finishing Up... UP.... on a doji or hollow candle for the day. It climbs on these types of open gaps. Sometimes it just gaps on each open... Big dips make for big runs.

Lower volume may signal a bounce entry. No Crosses means no House manipulating.

As soon as I saw the higher open, I waited for the lower shadow to start forming to make a buy closer to 3.43, but instead the open started rising so I moved in quick and took at 3.51.

I have a very tight mental stop and if we move to break the open before the first 4 hours... I will abandon the trade.

Picking an entry on a falling knife requires very small loss tolerance, breaking even on weakness is desirable.

Really strong moves show strength early.

Resistance is the top of Thursday's candle (3.60), and a shadow above that would be looking good.

If you have a longer view of PDN and could tolerate some chop, then 3.43 is your downside trigger. Look for higher volume to take you there...

Level II is showing low volume minus crosses.

Crosses add significantly to the downside volume that usually indicate further downside as houses load up to dump the price lower on intra day highs. I see numerous 100 to 300 share trades which indicates computer trading to me.

I think this a good showing for a Monday and look to see if the indexes sell off on Wednesday.

It would be a good thing for this to gap up tomorrow and signal I didn't catch a falling knife for at least until Thursday.

I think getting over 3.80 will be tough, but who knows, unless the broad market supplies the support, this is just a bounce until proven different, and a sell the top if you catch a bounce, is the strategy, or cut losses as close to break even, like a gorilla.


GLTA Lostoutwest
Kenuck SmallCap Trader

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Grandich

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