Repeat of yesterday?
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Yes WC8 lost 3c to finish at 85.5c. Our volume was comparatively small, just over 8m shares traded, same as yesterday. Opened at 90, high of 90 and a low of 83
To me it looked exactly like yesterday - volume, open and not go much high, not a big trading range though more than yesterday, and dropping another 3c like yesterday.So what is happening? Not sure, but as I wrote yesterday, it looks like some exhaustion - based on volume etc. And when you are tired, you are not that efficient and lose some. The only good thing is that these losses are on a much smaller volume than normal trading volume since we moved from 40s.
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Personally, I wrote yesterday that I sold most of my trading stocks at 92. I have been saying often in my posts that price action is key for me, as fundamentals (or market caps) sometimes it is very difficult to quantify (I wrote around this few days back on the topic of market caps).
Today I let go a good portion of my stock at average 88, some around 90 and lower as it went down.
So why did I sell? First, as I mentioned price action is not very good - nothing alarming, possibly accumulation happening, only small drops, so for many a normal/healthy process. Today's open did not give me confidence of a green/big rise. Also I was thinking what may be the price catalyst now - for a big move, like 40/50%. CW has bought already. Our results are exceptional. We may get more great results but many may think its already exceptional. Some new big buys may happen - GH etc. Some JV/placement etc with key cornerstone investor/industry leader. Till then I thought the price may be sideways but I could be wrong. I thought I will get out of most, its not often I get to sell a 2 bag, and will come back on next event/announcement. Risk is a takeover offer or some agreement which could easily gap up 50% or more - here I will lose. But if somebody big is buying, price action will tell that and I will immediately come back. If a great announcement is made, I may miss the gap up, but last gap up was not much, so thought will risk that for now. I am still very bullish and feel this is one of the best plays in Aus Li. I still hold some and will look to add soon. I was very bullish till now, but this big drop in volume has confused me.
Also another Li stock I started buying last week and have been writing there, went berserk and has nearly doubled in last 1 week, so took up a lot of my attention - been very lucky there.
Reason I wrote about my personal situation is that I do that with every stock where I write. Not many people do that and I also don't know why I do, but I feel I should be transparent. So whenever I buy I write the price I have bought, and when I sell, I write I have sold - not later - nearly the same day or week if writing weekly. Sometimes when I write that I have sold a good portion, I get a lot of flak, but that has not deterred me to do what I feel I should - to be transparent - not that my buy or sell should matter to anyone, or most, so hope one understands everyone's expectation and risk/reward is different - and more importantly they could be wrong.
So what may happen tomorrow? Not sure. Its in an indecisive state as I mentioned yesterday. Big buyers are not playing - volume is indicating that - why is that, I don't know, maybe they are accumulating on the sly by drop fear being created. Key number if it goes down for me is 80, but before that 81.5 should hold. Key number up now is to get to 93. I may play outside of this range, but while its playing here, I will watch. As I said yesterday, $1 retest is a good possibility. Will that happen? Lets hope so. All the best.
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