Today's Trading / General Commentary, page-88

Xsol and Dan, the pros are knocking the stock around the known resistance and support levels and over hyped this stock with a technical upthrust on the first big rise which was a money making maneuver based on taking advantage of the nearology of other nickel explorers.   Many, IMO, had accumulated around 2 cents over a long period and have been unloading a few relative to what they hold to further drive the price down for a rinse and repeat.  The volume tells the story.  Before close on that day of the big lift in price I did say it had to hold 6.8 cents to maintain momentum.   In which case if you got in late stop losses  should have been placed.  It was clearly seen in the point and figure chart I then responded with to a question; and since with other lines for closes over the last couple of trading days.

Pros take advantage of any pause such as waiting for a ballot or drilling approvals or slack periods like Christmas or playing up the weakness of management etc with a bit of history.  It is the name of the game.   They work the news like a sheepdog to take target profits with turnover. I admit I have found this stock frustrating but can see the light at the end of the tunnel.  Patience is the key if you judge the stock to be worthy from your own DD.

A good strategy is if your shares rise a third in value, then flog a third and so on because you should be aware of the pump and the need to reduce your costs for insurance.  Many old holders were in VMS on its merits and naturally got excited with its change in fortune.  It was due, and in due course will take off again on its merits.

As a long term trader I like to buy low looking for trickle up volumes over an extended period when the stock is off the radar, so I can weather the shenanigans down the track.  Pro tactics with CXO and TAW have been recent examples of good companies coming through the crap.

That being said, the overall picture is not bad for VMS.  The TA says volume is in normal range which also indicates the pros have been working on price and holding onto more and are now probably accumulating for better things to come given that VMS has a program in place.  The other indicators are such as the 34 day moving average has not been broken.  The Williams Awesome Oscillator is still blue.  It seems to be a normal cycle of overbought on the TA.  It may go down a TAD, if the pros like to press stops but the buying opportunity is great for piggy backing on their moves.

So in perspective, the speculative stocks will always bounce around on support and resistance.  Never spend more than you can afford to lose.  Plan your entry and exit.  If you feel trapped, VMS has great projects, and will redeem itself.  Try not to let these guys play with your head and spread your risk with other stocks.  GLTAH