If we have hit bottom and you're still holding there is no point selling - you'll be selling at lowest value. In the recent past I've been caught buying in on AVL, MOX, LTR near high for short term trades. Then sharp declines. Within a month or so they all increased on one set of news. Each one of these I mention were single news source oriented. Also I soaked up heaps of IOT in 9s when everyone was panicking and said it would keep on dropping, even every DT thought I was bonkers. Then sold for 11c next day. Every DT thinks I'm bonkers for holding PIO, contrarian investing is tough in the nerves but can be good too.
PIO has a bunch of tenements so expect some pretty quick news. The news two days ago was from a crappy tenement - the market just had their blinkers on and thought this was their only tenement. Yes the news was crappy, but was not their bread and butter like so many are freaking out about. Check their frequency of news of late, PIO keep on releasing results from all over their tenements. Even the DT guys were saying "no Spodumene in results, they will fail". On the surface - totally acccurate but their Mavis project has spod confirmed with more drill results coming and that site near greenbushes is yet to confirm but I bet they have high spod content, its only 12km from the biggest spod mine that I know about. They also have a big gold tenemtne we are waiting to hear about.
Also you will note the whole market is down, last night there was finally some relief from US.
If there was no light, I'd be dumping out and making loss up on other trades. This has good FA, and TA is good in the sense it is deeeep oversold. Yesterday you will see how bullish it got from 4.1 to 4.5, then someone stupidly dumped 5mil and took at buy side at 4.4/4.5. Market then retreated from there. Check the charts and you will see what I mean by reversal then sudden vertical down around 11ish.
I tend to get involved in high retail influence stocks as they are so volatile, you just have to ride out the waves.
In past two months register has been turned over twice, which would have flushed out a lot of low entry holders. So avg holding will be high.
If this one is dead and I exit, I will let you know. The cheaper the market perceives something, the more sharks will circle and pick up the pieces.
Oh yeah, we saw a second wave of exits off T+2 traders exiting, I think this is why we broke down under 4.2, was no other reason.
I've made a killing off swing trades on high retails. Another example is SGH, that knife sliced the price down to 23c, I loaded up like 400k, then next day solid low 30s. XTV got punished from 3c to 0.7c, bought 0.8c, sold 1.6/1.7. I mention these are when the price reverses, retail stocks bounce back hard. They also bounce back as holders want back in, or they want to average down on signs of reversal, it creates a frenzy.
Last point, I will bet that bottom feeders like UBS re entered when it got into oversold territory. I think they had entry points around 4.2c as that was the technical floor. I say this as they copped a 5mil exit, then 2 secs later rebuilt the buy stack and copped another 3-4mil dump, the built again. DT guys would have retreated, brokers with deep pockets don't. The will sell in a week or two when it returns, they dong buy small caps unless they can see a huge return, normally 100%.
Anyways, if people keep stressing, price will keep getting oversold. Once people take a chill pill and hold, price will rise. Very simple stuff!
Laterz!
PIO Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
