Ryanmagic, how many people buy a stock when they read someone's...

Ryanmagic, how many people buy a stock when they read someone's post on hotcopper? Do you think that my post will influence CSL's trading? I certainly do not think so. Only 130 people have viewed my post so far. Yesterday's trading involved close to 10,000 trades. The number of 130 potential buyers or discouraged sellers represents a very small percentage of a day's trades.

CSL will go up not because you and I express our opinion on this site. It will go up because it has been an outstanding growth stock, has been rated as a buy by most analysts and has been performing well during the same period over the last few years, obviously due to good annual reports.

The trading volumes of the last 3 trading days suggest that selling was related to profit taking by traders. Selling was also related to CSL's downgrading to "Neutral" and "Hold" 2-3 hours after the report was out by Macquarie and another broker.

Yesterday's trading showed that the sellers were getting exchausted and the buyers were getting the upper hand in a bad day for ASX. A bulish harami is interpreted to mean exactly that.

I have been watching CSL's trading over the last 3-4 weeks and I was waiting for the annual report to come out. I was surprised to see such a sharp drop in the sp after CSL's report. It seemed excessive selling and many analysts thought so. I saw good value in CSL after such a sharp drop and it was such an excellent buying opportunity I couldn't let go past. I jumped in. Yesterday's trading confirmed my expectation of a rebound and I bought more. At the end of the day I was hoping for a higher close and a bulish harami pattern. That's confirmed and next Monday morning I will buy more of CSL.

CSL has been such a great growth story since it was floated at $2 a share some years ago that you cannot dismiss. It should continue its usual pattern of going higher and higher.

CSL's excellent report and next year's profit growth indications of 16% to 24% will attract interest and buying by the funds. I'd think that institutions will see good value in CSL and start buying next week. It's also end of the month and portfolio re-balancing by the funds and stock rotation should be good for CSL.

Next week will prove me either right and richer or wrong and poorer. Next week's trading on CSL will also influence my faith on a bullish harami one of the 4 most powerful reversal patterns of the candlestick theory.

Regards