Market Watch for week of 11/02 - 11/08 2009

[Dr. Dave]

OCNF-

Too tired to post charts, but the headfake down for most of the ship patterns is done and reversed - all gained into their patterns or broke out on very high volume today, resistance for the indexes I usually post went like this - BDI past the fib/price resistance, $SHX stopped on the retrace of previous pattern. It's looking pretty good for ships now. Prior to the headfake down was the day I was going to go in on breakouts to the upside, but they reversed before close, and plunged to bottom of patterns.

Do yourself a favor, don't just watch OCNF to make your decisions - watch the rest - $BDI, $SHX, SEA and the DOW transports for indexes/funds, then watch the fundamental/technical leaders ISH and NMM (I think that's it), along with some of the other ships that trade higher, DRYS, DSX, EGLE, etc. If I get busy, don't post again, go thru the older threads, get tickers, think I took the charts down though... I can put them back on manana if you remind me. Heavy deadline for funding at work... so won't be reporting in.

First resistance for OCNF is just the 1.25 price, take that out, and it should keep trucking to the next price level... ups and downs along the way of course. Also - before you get in another trade - have your target/exit plan up ahead of time, along with a loss level or plan if it goes down.

This could be time for maoxian type play for those that aren't in yet... ie. pullback, reversal candle, confirmation, buy stop above the confirmation.

Bass -

You got the money management down pretty good. I see why so many great traders play poker. I was more referring to entry/exit points... but will discuss later. Also - the pattern proficiency depends on overall market direction.. you can have a ton of bullish looking plays in a bear market, and most will fail and vice versa - so it's easier to play them when the market is chugging in your direction, which of course doesn't matter for pennies. Also the number of patterns that you find on automated screens will be higher in the direction of the market.

[Los Tiburones]

What’s up with SpongeTech?
Today's Financial News - Posted November 11, 2009

SpongeTech (PINK:SPNG) is a dangerous investment, yet it has a spectacular upside. If it turns out the company is not run by a bunch of crooks, today’s investors could be sitting on monstrous rewards.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): I don’t know why, but I still have some faith in my fellow man. We may lie and deceive each other, we may stick a knife in a shopkeeper’s thigh to get at his register and we may blow each other up in the name of religion, but as a whole we are not that bad.

In fact, just the other day somebody held a door for me… at the airport, nonetheless.

Maybe I am naïve or just plain ignorant to the lengths some folks will go in the name of greed, but I have no problem giving somebody the benefit of the doubt, especially when everything they say is monitored by men that can put them behind bars.

That is why I have a hard time believing SpongeTech (PINK:SPNG) is a full-on sham.

If you have been following the company’s story, you know the news is not promising. After releasing report after report of promising sales and increased revenues, investors thought they may be onto something.

But than a couple of auditors quit, the New York Post ran stories of scandal and the SEC stepped in.

The Wall Street cops halted trading and began an investigation. The action spooked any bullish investors.

Bad boys, bad boys

That was in early October. Now, more than a month later, the investors that still want in on the action (there is a horde of them) are stuck buying shares off the Pink Sheet market. They are getting the ultra-speculative shares at a fraction of what they were going for just eight weeks ago.

The question is, are they making a smart move?

While just about every back-of-the-phone-book lawyer is working on getting the lead of a class-action lawsuit, the company is going about its day-to-day business.

Since late October, SpongeTech has announced another handful of sponsorship deals, including contracts with the Cleveland Cavaliers, the Charlotte Bobcats and Major League Baseball.

Even more interesting, the company has quietly re-negotiated a once-null deal with GetFugu, a mobile search provider. The companies are once again moving forward with a $1.75 million deal that allows SpongeTech to be a premier user of the company’s up-and-coming technology.

While this deal has little material worth, it is a signal that things have got to be improving at the home office. At the very least, it is proof that somebody at SpongeTech is still answering phones and writing press releases.

Yet there is still no official word from the SEC or an annual filing.

While I am nowhere close to believing SpongeTech is a surefire investment that deserves your retirement dollars, I am convinced of its merit as a speculative investment. It is a high-risk play, but with a current share price of less than a nickel, the opportunity to bag big gains is there.

Right now, investing in SpongeTech is not so much as an investment in an innovative product that can clean your car or shine your baby’s head. It is an investment in mankind.

That means there is a very good chance you could get burned. But my money is on the upside.

http://www.todaysfinancialnews.com/u...ech-10316.html

[candleman]

Bill

Are you going to hold OCNF or try and buy/sell to pick their pockets!

I am up 17% but must hold until Fri or risk getting bitch slapped by Etrade...non margin acct!

Dr Dave/Bass any insight where a good exit point is according to the charts!

Jeff

Jeff,
Set up a margin account.... This is a great stock to daytrade. I picked the pockets twice in the last 3 days and I will continue to do so. It's swinging 5 to 10 cents a day, so why not get in and out a few times?

[billhart22]

Bill

Are you going to hold OCNF or try and buy/sell to pick their pockets!

I am up 17% but must hold until Fri or risk getting bitch slapped by Etrade...non margin acct!

Dr Dave/Bass any insight where a good exit point is according to the charts!

Jeff

Hey Jeff -

I am just going to hold for now. I want to see how far it goes before it gets stuck. I would like to buy more, but it has gone up too much over the last two days. It isn't time to sell for a while with OCNF. Possibly, it could be done bobbing now for a while. I don't know that though....just a guesstimate.

[billhart22]

While just about every back-of-the-phone-book lawyer is working on getting the lead of a class-action lawsuit, the company is going about its day-to-day business.

They line up like pigs at a trough.

[candleman]

GSAE is back down below 40 cents right now. This is a great day trade stock with a bright future. Buying at 39 and selling at 44 is a nice way to pick the pockets while we're waiting for the run up.

[candleman]

I just snuck in and got a couple thousand shares of GSAE for .35, I think that is a wonderful price for this company.

[candleman]

SIRI just hit .66, it's been over 6 weeks since we've seen that price!

It's nice to see what a couple of upgrades can do for this stock!

[billhart22]

I just snuck in and got a couple thousand shares of GSAE for .35, I think that is a wonderful price for this company.

Hey Chuck,

I believe that is a score! It seems like a good purchase price to me.

[candleman]

Hey Chuck,

I believe that is a score! It seems like a good purchase price to me.

LOL
Yeah, that IS a good price considering that I have some that I paid more than a buck for a few months ago!