TSX and CDNX Shakey at best...

                                     DOW        NAS            SP500

                                   TSX60         VEN          NAS 100

The screen shots above are not to be confused with anything more than a day's performance over the past week of gap downs.... they represent a lower bollinger piercing which in 98% of the time will bounce...

Both markets showed bounce starting early Friday morning, continuing to hold positive air, although not as robust as I have seen on previous Fridays.....
Japan... Lybia... the whole middle East...  it is mind boggling that we still have as much air as we do...

The link below leads to the first two charts in the Public List and they show a serious break in the trend line in both markets... It is these breaks of the trend line that are most ominous...

Stockcharts Public List

In order to determine the amount of bullish sentiment in the market.... we can make an assumption based on patterns developing... which would suggest demand weakness on one hand, yet as the markets have both pierced the lower bollinger, we know that lower bollinger piercings result in a bounce 98% of the time...

The amount of sellers (investors) increased as the move down increased...  It is unlikely they will re-enter.

This kind of whiplash will have an effect of removing the bulls from the market. It is increasingly hard to have confidence...

As an example... if we were tracking a down market which had been well established from a previous high ground... as the market whipsawed into support we would be shaking out the bears..

In this case we are whipsawing into resistance.... shaking out the bulls..

A (bounce into next week) rally that could whipsaw it's way into the middle of May needs to be taken a day at a time....

It is easy to look over the supporting indicators and see that strength is still showing, but a closer look shows every indicator has broken down...

Supporting indicators are moving into a position of oversold.... a consolidation would be the next step as the markets move down to confirm the indicators...

If the market is going to keep the pace... then the indicators must move up in step to confirm the rising indexs.... which will it be?

Is Friday's bounce a bull trap indication that there is enough strength left to test market resistance?.... Which I believe if your lucky... you may enjoy a last chance to prepare for the worst and hope for the best....  as the rally moves to meet the Summer Doldrums...

I smell some repositioniong opportunities....


 GLTA Lostoutwest


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

After connecting to a link... you should refresh the page by clicking on the Home button or the Web Page title to ensure the latest updated page

|| Stockcharts Public List ||

|| Kenuck SmallCap Trader || The Gold Report || Korelin Radio || StockCharts You Tube Lessons || Money In Metals || Resource Clips || Stockhouse || Ticker Trax || Bullion Bulls Canada || Lex corp || Track My Trade || National Post || Grandich || Penny Stock Journal || FreeStockCharts || Gold$eek Drill Results 101 || CBCnews || Seeking Alpha || SmallCapPower || Macroaxis || GOOGLE

Please read our Complete Disclosure

Markets teetering

It appears that any buying signals for the next week and maybe more may be nothing but bull bait and if acted on..... should be assumed with a great deal of caution... with an attitude of love such that a person is prepared to weather the worst and go long term... It is most difficult to technically analyze buy signals in a market that is distributing... This link following has some key points of interest that suggest any bounces near term should be considered as opportunities to take a neutral position...

Michael Berry


GLTA Lostoutwest


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

After connecting to a link... you should refresh the page by clicking on the Home button or the Web Page title to ensure the latest updated page

|| Stockcharts Public List ||

|| Kenuck SmallCap Trader || The Gold Report || Korelin Radio || StockCharts You Tube Lessons || Money In Metals || Resource Clips || Stockhouse || Ticker Trax || Bullion Bulls Canada || Lex corp || Track My Trade || National Post || Grandich || Penny Stock Journal || FreeStockCharts || Gold$eek Drill Results 101 || CBCnews || Seeking Alpha || SmallCapPower || Macroaxis || GOOGLE

Please read our Complete Disclosure

Kathunk....

One ugly open............. Major Gap down on my watches right accross the board.... Stockcharts Public List

GLTA Lostoutwest


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

After connecting to a link... you should refresh the page by clicking on the Home button or the Web Page title to ensure the latest updated page

|| Stockcharts Public List ||

|| Kenuck SmallCap Trader || The Gold Report || Korelin Radio || StockCharts You Tube Lessons || Money In Metals || Resource Clips || Stockhouse || Ticker Trax || Bullion Bulls Canada || Lex corp || Track My Trade || National Post || Grandich || Penny Stock Journal || FreeStockCharts || Gold$eek Drill Results 101 || CBCnews || Seeking Alpha || SmallCapPower || Macroaxis || GOOGLE

Please read our Complete Disclosure

Update URC.V

Continued heavy liquidity to be nice about it......... it looks to have room for more downside, and considering the temper of the uranium sector ... may prove to be a good stink bid on a move down...

GLTA Lostoutwest


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

After connecting to a link... you should refresh the page by clicking on the Home button or the Web Page title to ensure the latest updated page

|| Stockcharts Public List ||

|| Kenuck SmallCap Trader || The Gold Report || Korelin Radio || StockCharts You Tube Lessons || Money In Metals || Resource Clips || Stockhouse || Ticker Trax || Bullion Bulls Canada || Lex corp || Track My Trade || National Post || Grandich || Penny Stock Journal || FreeStockCharts || Gold$eek Drill Results 101 || CBCnews || Seeking Alpha || SmallCapPower || Macroaxis || GOOGLE

Please read our Complete Disclosure

Markets Teetering or is it my lying eyes.

If the markets correct, they will take a lot of good stocks with them as traders and investors alike will try and balance losses with profit taking in general... this will leave only a very few fundamentally strong issues that will buck the trend simply because they don't have the overhang being laggers or undersold at an opportune time... Looking back over last year I saw that "Go Away In May" started approximately the middle of May for a lot of high profile overbought stocks... I keep hearing about the bullish aspect of the market... considering the overbought state of the TSX and CDNX... this may turn out to be hopeful thinking.. I'm not predicting a crash but rather a sound, solid and resounding correction... with buying opportunities that can't be had for lack of cash...

This week has been very heavy with selling and I'm seeing some super bottom picks in the making... they have room to move lower... and if you haven't noticed... Grandich also thinks there may be some buying opportunities in uranium.... as the sector seems to have cooled off.

I have some watch lists that I'm looking over in the gold and silver... and they look like somebody threw in a Bouncing Betty just to shake them up..

There is a lot of froth out there...  be cautious.... It is not a mistake to to preserve gains by taking a neutral position where you think it may apply... I would say that the first time a Friday and Monday are down days would be a confirmation of a correction going into it's second week.



GLTA Lostoutwest


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

After connecting to a link... you should refresh the page by clicking on the Home button or the Web Page title to ensure the latest updated page

|| Stockcharts Public List ||

|| Kenuck SmallCap Trader || The Gold Report || Korelin Radio || StockCharts You Tube Lessons || Money In Metals || Resource Clips || Stockhouse || Ticker Trax || Bullion Bulls Canada || Lex corp || Track My Trade || National Post || Grandich || Penny Stock Journal || FreeStockCharts || Gold$eek Drill Results 101 || CBCnews || Seeking Alpha || SmallCapPower || Macroaxis || GOOGLE

Please read our Complete Disclosure

ALPHA.COM

This following copy and paste shows up a situation I had been aware of but up until now I had not really considered the implications..
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
Alpha What?! – That is what a lot of retail investors will be asking themselves
Alpha.com

What it is... a giant pain in the $#@%

Long story short... before you place a buy or sell order on the TSX or TSX.V, be sure to waste your time and check Alpha to ensure you’re getting the best price. Believe me, all is no longer as it appears.

Instead of doing something to help retail investors in Canada, the major discount brokers may all be moving their trades to Alpha. And they must be doing so for their own self-serving interest, because from what I can see, this is going to be a major inconvenience for retail investors.

So far I have only called and checked with TDWaterhouse who confirmed they are doing this. I assume many of the other major banks are doing the same but check with your broker.

In the past Canada had one of the most transparent stock exchanges in the world. When you looked at the bid/ask or market depth, what you saw was an accurate picture that could be trusted. Now with Alpha that will be gone because the quote system you are likely using is getting its feed directly from the TSX or TSX Venture Exchange. It doesn’t reflect what is happening on Alpha – and your discount broker (or maybe full service broker) isn’t about to tell you they are routing their orders through Alpha to make more money.

You place your order based upon what you see. They execute your order through Alpha. If someone doesn’t come up with an affordable way to provide quotes that integrate (both) clearing systems, we as smaller retail investors will be at a huge disadvantage. It took the Internet to come along and level the playing field for everyone. This is a major step backwards.
Example: 1:38pm EST Monday – Seaview Energy (TSX: V.CVU.A, Stock Forum)

My online quote system that I have used for a decade and is not only quick but highly accurate reports the following:
Bid 14,600 at $1.33 / Ask 200 at $1.34; Last price $1.33; Volume 75,400

Alpha reports
Bid 500 at $1.33 / Ask 500 at $1.35 - Last trade $1.35; Volume 7,700

Alpha also shows market depth so you can see other bids/asks for free – but it’s useless as the number is completely different from what the mainstream quotes are reporting.

Here is where it becomes tricky. If you wanted to place an order to buy or sell and were using someone like TD Webbroker, you wouldn’t notice the difference if your order was filled right away. However, in the majority of cases your order may not be filled and it will make no sense why – or why your bid and ask doesn’t even appear. It’s because they are using Alpha.

If you haven’t noticed it yet, you will eventually. And you will realize what a huge inconvenience this is for tens of thousands of Canadian retail investors.
When everyone used the TSX directly, we had great transparency and execution. Now we are using two completely separate clearing systems and the TSX and TSX.V will soon resemble that horrible OTCBB in the United States, where market makers are used and you never have any clue what the real bid and ask are.
Algorithmic trading

The major banks will tell you they are using Alpha to bring down the cost of trade execution. I am sure that is true to a point. But I also wouldn’t be surprised if it is designed to accommodate Black Box or Algorithmic trading (computerized trading).
We are seeing more and more computerized trading on the TSX and TSX.V and it’s creating insane volatility in many cases - this year in particular. I watch the markets very closely through the day and have for over 20 years. Now what I see when momentum builds on a small stock, is huge swells of buying and selling.

Simply look at the trading this past month in INM.V and INT.V. Their news releases were good but nothing to generate the type of massive volume we witnessed that pushed those stocks several hundred percent higher within a week. That is fine on the way up. But not so much on the way down.
All these stocks are running hard, and crashing hard. How is that any good for the investment environment in Canada? It’s not. Those are only two examples – there are many this past month alone.
Algorithmic trading has been around for years and is becoming a major problem in the United States, as I believe it accounts for almost 60% of all trading on the big boards. I do not know the extent in Canada but in the past I don’t ever remember the small stocks trading as rapidly as they have been and on such huge volumes.
frustration.jpgNow that I have become aware of this magical little clearing house called Alpha that only the mainstream brokerage firms, institutions, and professional traders seem to use, it makes sense now. There are definite spreads between Alpha quotes and TSX quotes. If you can capitalize on those spreads (and do it rapidly through computer programs), a huge amount of money can be made.

I have only looked into the smaller stocks, but you can imagine the larger higher volume stocks.

Do yourself a favour and check your own stock quotes against Alpha.com

In particular, do so before you buy or sell anything. You might be very surprised at what you find.


ABOUT THE AUTHOR

Danny Deadlock, MicroCap.com
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>



 GLTA Lostoutwest


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

After connecting to a link... you should refresh the page by clicking on the Home button or the Web Page title to ensure the latest updated page

|| Stockcharts Public List ||

|| Kenuck SmallCap Trader || The Gold Report || Korelin Radio || StockCharts You Tube Lessons || Money In Metals || Resource Clips || Stockhouse || Ticker Trax || Bullion Bulls Canada || Lex corp || Track My Trade || National Post || Grandich || Penny Stock Journal || FreeStockCharts || Gold$eek Drill Results 101 || CBCnews || Seeking Alpha || SmallCapPower || Macroaxis || GOOGLE

Please read our Complete Disclosure