Hi - I am a newbie to trading, although I have been doing it many many years. What is your opinion on tell tale signs a stock is being acccumulated? TIA, Max
Reason why I was asking. SMAN came out with news in the middle of the day today. But if you look at the history, it appears someone was loading up on it a few days prior (accumulating shares). Just curious if one is able to see that coming. MAX
(1) Did you buy any shares before the spike-up? Probably not. (2) Stop wasting your time with penny stocks. (3) The stock had a volume spike yesterday. Did that have any significance for you? Probably not. (4) If you bought into the initial spike and waited, chances are, your position would be a loser now. (5) Expect the downtrend to resume. We'll see what happens.
No I didnt buy in. But just curious to see if I can apply to larger stocks. Although I dont trade the small stuff, I monitor to see if I can learn something. SPAB is one that also had that same characteristics for accumulation, so I want to see what happens next. Is it good when stocks has a lot of volume but goes no where? Just trying to make sense of it all.
google: Richard D Wyckoff Read everything he ever wrote. (under his name and "Rollo Tape" ) Lots ta learn..........
Ok, I got bashed for posting a legitimate question. I know I am not nearly as experienced as most people on this board. But cut me some slack I am just trying to learn. I was watching SPAB because it seemed to have that accumulation thing going on. Since then the stock made a big move up and looks techincally attractive. Well to me that is. I just want to see if I can learn to recognize this better. Would love other input on recognizing accumulation.
Review the writings of Jack Hershey, Bubba7 and Grob109 with respect to Accumulation / Distribution. Links to much of the material can be located in my first Journal on the subject. - Spydertrader