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Message: RE: Chart Analysis

RE: Chart Analysis

posted on Nov 13, 2005 09:45AM
Chart analysts can do their thing, but IMO it`s pretty worthless when it comes to EDIG. Let`s face it; at this point we`re still a ``wild card`` play. Look to the volume - it`s insufficient to enable an indicator. It`s like conducting an experiment with a randon sample of two in a population of millions. Many, if not most here, own more shares than the average daily volume (which really should be divided by two; this is OTC land with MMs, and where each buy and sell are counted in the volume - not offsetting ``trades`` as on the NYSE). One bit of sparkling news, and charts are out the window, and we`re off to the races. Likewise, if one of us plump longs gets a wild hair and offs his/her position (of hundreds of thousnads of shares), and we`ll head south, charts be damned. That may actually be one thing that`s holding our PPS up - the recognition that if, say, one of us suddenly sold (market orders, just to get the hell out) 200,000-300,000 shares, it would probably drive us down to the 7-8 cent range; at least into the 8s. And that`s the one scary thing RIGHT NOW. Tax loss selling could really hurt us, though I have a feeling that those who would sell would probably buy back after the magical 30 days (and probably at a PPS close to the exit PPS). Next week may be pivotal in this regard. Any forward-looking statements will be the indicator for anyone contemplating tax loss selling. If there is even a hint of something that may happen soon, I think most would hold tight for fear of missing out (because NO ONE, who`s held this stock for years, wants to be in that terrible position of dumping only to see an immediate blast off). If it looks like any news is months away, the fear of ``missing out`` will evaporate. But it may present a ``buying opportunity`` for the faithful....though I think most of the ``faithful`` are already all in to the limits of their risk tolerance (and beyond).

But I KNOW nuttin`, and my opinion is no more reliable than chart analysis!

SGE

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