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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: SP

Re: SP

in response to by
posted on Aug 28, 2009 04:51PM

If you have access to time & sales data look for the direction of transactions. You will see whether trades are mostly going from bid to ask (buys) or ask to bid (sells). It is much more difficult with these 4 decimal plays since so many go off in the middle but you can still get a sense.

NOTE: I did not watch today's action much. My opinion however is this has been driven by people exiting positions while others wait to pick them up as they sell.

This should not be surprising as we move into September with the market perception there is no glimmer of a resolution based on the lack of company statements. Investors will be weighing this against the announced fact that we have cash enough to get us INTO Q4. We don't know whether that is Oct 1st or December 31st but it represents a finite window of time.

I suspect we will see a great deal more volatility as we move through September and I unfortunately think it will be on the down side. There is nothing as yet to create an urgency to buy and a shrinking window of survivabilty that will cause people to panic sell. Anyone wanting to add to positions just needs to wait for others to sell to them.

This was never a play for those who could not afford to lose all they had in and it is even more so now. The good side is that even though this volume is much higher lately, it is still well below what we used to trade at regularly which means there is still a large number of people willing to ride this into the ground rather than sell now.

Good luck to all!

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