Trading Lesson
posted on
Oct 14, 2011 07:11AM
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TSX Venture….AAT>V….ATI Airtest Technologies
Marketcents Media Corp,Chicago IL, Victoria BC Canada
Todays trading in the consolidated version of ATI Airtest stock may not look like much excvept to a trained eyeball. Thats why you have me to help with my interpretation. It didnt take long to see where the cat left its mark in the buckwheat, as 220000 shares traded between 15 and 17c. Not that much volume you say…let me put it in perspective. On a 6 for 1 rollback basis, that is 1.3 million shares and represents over 1% of the issued shares at a price of 2 1/2c pre split. This is a new year low which brings to mind a lesson I learned as a green eared trader for Wolverton Securities from veteran Jerry ‘gud mornin’ Bayer in 1980, and now pass on to a new generation. He told me something I have never forgotten and used many times to make sound judgements with, and thereby casharoo///”A stock trades volume at the top and at the bottom”. If you check charts you will find this true 90% of the time. Heavy selling pressure resistence of profit taking meets the emotional rush of chasing a price up to an overbought situation cresting at the pinnacle of a run, based on a combination of good news and better promotion. The same can be said when an oversold situation, caused by a number of reasons….tired of the wait flippers,panicky rookie traders,tax loss selling, overdue and undermargined accounts and just plain peeved emotional investors usually cause the oversold situation. This is the time savvy, patient money plucks up the paper in great quantity with ease, and fleeces the awestruck rookies as it miraculously dries up and bounces to a realistic level. I shant rave on regarding Airtests attributes (this time) which show the value of the stock that should be trading at multiples anyway This is a prime example of how big money gets bigger…and it involves zero heavy lifting….The only blisters will be from the pen filling out the tax form. I hope you all take note and remember this, and better still take advantage
My assessment is that selling will continue in the 15 to 20c range until the company announces alternate financing. George Graham was not born yesterday, and has no intention of seeing his baby raped and diluted at 15c.. The low for any size was 3c….18c now. It has a mediam trading price of 32.5c over 2 yrs with a dip last year at tax season I also think the volume today will not sustain at this level.as many shareholders are long term, friends of insiders and new investors at 30c and upward. There just isnt any stock that can be sold here at mess than a 50% loss.There just cannot be that many dum dums…or am I missing something?
I have learned that Airtest has been featured in a prestigious trade rag in the United States. I am hoping to run the article in Marketcents next week
In the meantime, I dont need to draw you a picture on the etch a sketch board. Call your broker and discuss the best course of action for you. I have retired my active investment broker licence and thereby not a qualified person. Be sure to talk to someone that has your best interests at heart…..Hmmmm…can anyone find a broker like that? If you do call me ….lol
royrogers
www.marketcents.com