MTM Chart, page-989

Weakness or profit taking?
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Yes MTM lost 3c to finish at 15.5c. Our volume was very high as to be expected after an announcement, just around 12m shares traded. We opened at 21, touched high of 22.5, low of 16 and finished towards the lower side at 16.5.
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ASX REE stocks too did not have a good day today. Of the 26 REE stocks (list in my Weekly Report) that I track, on average across 26 stocks there was a loss of 3.5%.
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So what happened today? Announcement - there are mixed opinion in threads. I did read it a few times and also compared with a number of other announcement of other REE stocks. To be honest I did not find this bad deserving of a sell off, but I also know that I am no expert in this area. But still overall it looked good to me. As usual a lot has to be done. But I can certainly see a big potential with a good chance of it being economic/commercial if things in future turn out positive. So a very good platform to have I think. But we have to respect the market as well - though markets sometimes have other factors in play so immediate knee jerk reaction is sometimes not the final play.
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So why did we sell off today? As I have been writing for few weeks now, MTM is in a strong up trend. Last 3 weeks gains - 29%, 10% and 15%. So its very evident that lot of punters sitting on good profits. Many do not want to play a very long game. So those wanting to cash-in, when will they do that? More likely on an announcement. There is good volume and its easier to get out. Sometimes there is a herd reaction, and if a few sell, others join in - because they are also sitting on profits. There are also some who buy in on announcement and if SP does not go higher, the day traders want to exit - creating some more sell pressure. Of course, there is always the point that sell is fair based on announcement - which many non-holders who have appeared today are alluding to. Other factor is that many punters are not able to really dissect an announcement whether its good or bad - if some sell, they too. So I feel a number of factors were in play.
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So was there anything positive today? We made a new 52 week high of 22.5 today. Our VWAP average today was close to 19c - we finished at 16.5 - it just shows that the close is not representative of the trading that happened today. Many have bought higher and will now wait for this to go higher. That means we should see much less sell volumes in the next few days - lets see if that happens.
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Personally I did play with my trading stocks, both heads and oppies. As I have mentioned before, I keep one-third of my holding for trading purposes, rest two-thirds hold long. So I also did sell and buy today. I bought back my oppies at 6c and 5.6c. Also bought back my heads at 16.5 and 17c - missed the 16c - I wasn't sure if it would go lower so was waiting. Lets see how it goes.
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So what will happen tomorrow? Honestly - don't know. At this stage I am keeping an open mind. As I said, after repeatedly reading the announcement, I am still not convinced of this sell. But its market which decides what is right or wrong - I try to follow that. I feel that most of the profit takers may have gone. There will always be some who get spooked. But I am optimistic at this stage that sell volume will be less and lot of new holders with higher purchase will push the SP higher in short term - may be even tomorrow. Will that happen? Lets hope so. All the best.