This afternoons' NOT and SPQ action shows how wacko this market is.  I honestly think it's bipolar.  What's the difference between the two?  An anomaly or three: give me a break.

I came to the realization this morning when corresponding on the NOT Board that the market is not efficient and can be manipulated.  It was not a comfortable realization.  I've been trading for a number of years but this was an eye-opener.

IMPORTANT POINT #1:  Never use STOP LOSSES.  There is a LEVEL 3 trading regime used by "market makers".  They can find out whether the small retail investor is trying to protect against downside risk. 

For example, if SPQ goes to 50 cents, and you want to put in a stop loss at 40 cents (to guard against a 20% fall in share price), a "market maker" can cherry pick your stock.  It happened to me the other day with another equity (HRG) where I lost 3000 shares. Needless to say, I was p***ed!!!

Although it can't be proven by you or me or anyone of us retail investors, I expect companies like Sprott have their "market makers" who "invest" as appropriate to get the "best deals".  Get my drift?

IMPORTANT POINT #2:  This is stating the obvious, but I need to remember myself sometimes, pinpoint your own ENTRY and EXIT points.  This is really the only disciplined way of dealing with "market makers" and any manipulation.  Moreover, if you "love" SPQ (be careful here), it will help you become friends.  Get my drift #2?

For example, if at this time you have for SPQ a average share price of 10 cents [ENTRY), identify a percentage of your shares (many people use 50% but it could be less or more) and place a HARD STOP (EXIT) at 20 cents.  The rest is gravey.  But what if you think SPQ is worth what Noront is worth?

If you want to go real long (I do), identify a percentage of your shares on which to "take profits".  I bought 25000 shares yesterday at 13.5 cents and I have a HARD STOP at 20 cents.  These shares are a percentage of my total holding of SPQ, but I intend to make some profit in the short term.  The market makers (I'm going to call them the WRAITH) can't manipulate a HARD STOP.

And I have every expectation that once some those anomalies are drilled on the SPQ JVs, the WRAITH will be blown away.

Snug