weekend aftermarket lounge 10-13th jan, page-23

Hi Chai, Yesterday at around 3cts I pointed out that IMO the early signs were there that distribution (check google for definition if you do not know what it means) was taking place.

Unfortunately for some people somewhere out there I was right.

Little stocks like RMX are always desperate for cash and therefor need to get whatever they can (usually at substancial lower prices than they would like) get from institutions or so called sophisticated investors (or rather punters when you talk about stocks like RMX). So a CP raising will always hang over this stock until executed.

There is also a trading GAP at 2 cts, that in cases like this invariably gets filled. That is how the pro's work!

From atrading perspective, important Fibionacci levels are:

based on intra high, 50% @ 1.8, 61.8% @ 1.5
based on closing price, 38.2% at 1.8, 50% @1.4/1.5

So I think from a trading point of view it could/can set up a good SHORT term trade @ 1.8 (most likely) and perhaps (also @ 1.5 )

So if you are an investor, done your homework and believe in it, sit it out.

If you are a trader who bought at much higher prices take your loss and try again at 1.8 or 1.5 with a stop loss profit trailer in place.

What Endless indirectly referring to was "penny dreadful stocks" and when you trade those, you need to be a very experienced diver when swimming with the big sharks. And even the very experienced sometimes get eaten up!

Hope this IMHO stuff helps a little bit.