A LOOK AT GAPS W/ FAS

FAS CHART W/ GAP:

1. THERE IS A GAP TO THE UPSIDE OF FAS THAT NEEDS TO FILL. THIS CHART IS LOOKING OVERSOLD AND READY FOR A BOUNCE ESPECIALLY AFTER LAST WEEK'S MARKET DISASTER THE CNBC PUNDITS STILL CAN'T FIGURE OUT.

2. THERE IS A PINCH ON THE CHART AS WELL. PINCHERS ARE VERY BULLISH.

A LOOK AT GAPS W/ FAZ

FAZ CHART w/ GAP:

1. THERE IS A GAP IN THIS CHART AND I WILL ILLUSTRATE IT AS I WANT TO SPEND SOME TIME ANALYZING GAPS AS THEY CAN WREAK HAVOC ON US ALL.

2. TRADERS SEEM TO HAVE DIFFERENCES IN WHAT TECHNICALLY FILLS A GAP. IS IT THE CANDLE BODY OR THE CANDLESTICK WICK / TAIL?

3. ACCORDING TO THE FOLLOWING INFORMATION, FAZ CLOSED ON 5/03 AT 11.65 AND OPENED AT 12.07 ON 5.04. AT THE TIME OF WRITING THIS THAT GAP HAS NOT BEEN FILLED. I WILL OUTLINE IT ON THE DAILY CHART AND THE 60 MIN CHART.


2010/05/04 opened ->12.07 12.72 12.00 12.52 107,791,826
2010/05/03 11.93 12.08 11.54 11.65 <- closed - 61,871,810

A Quick Lesson On the Aroon Indicator

Let's take a look at the Aroon Indicator, shall we?

Early signs that the "consolidation" or recent "downtrend" are coming to an end:

Let's take a look at the Aroon.

The Aroon 5 and 25: The down or red lines are both starting to head south, which is an early indicator that the downtrend or consolidation period is waning. The longer term 25: The down or red line shot up the other day as a result of the drop to the 50dma at @ .08. That 50dma support line held and we are now trading at higher levels off of that bounce.

The up or green lines are still at 0, which tells us that the uptrend is not "online" yet. Buying pressure will cause this line to return upwards. Look for it to cross above the down or red line...This cross is a very bullish indicator and confirms the start of a new uptrend.

EIGH - PREVIEW OF WHAT A BREAKOUT TO THE UPSIDE LOOKS LIKE

Eigh looks to have bottomed out and is testing that upper trading channel on the flag formation. Continued buying pressure / volume will send it higher with and in doing so will have an "upside breakout." We are seeing the possible preview of that breakout. Stay tuned.

MESAQ - CUP AND HANDLE FORMATION

THIS IS AN EXAMPLE OF A POSSIBLE CUP-AND-HANDLE FORMATION, WHERE THE HANDLE IS CURRENTLY BEING FORMED.

Cup-and-Handle formations are bullish chart patterns, and they get their names because the chart formation actually looks like a small tea cup with a handle. The important thing to watch for now that the "cup" has formed is the length of the handle. If the handle hangs out there for too long, the chart pattern breaks down. This particular chart shows the trading action taking the stock price across the "handle" trading channel. This is a good sign that the selling pressure has dissipated, and that the bulls will test pushing through the upside of the trading channel for an upside breakout. Upon breaking out to the upside, watch for the stock to charge the 200dma at around .146. That line is a strong line of resistance, and once broken will become a strong line of support.

EIGH - BULLISH FLAG PATTERN CHART FORMATION

This is a Classic Flag Pattern Formation Chart Set-Up.

The bull run that began in the .04's and took this stock to .139 created the "flag pole." The flag pole is characterized by high volume buying pressure, where the bulls controlled the direction of the stock and pushed it to higher trading ranges. Now, as much as traders would like for stocks to go straight up, they do not, and they have to "cool off." The cooling off period is also known as the"consolidation" period. The stock consolidates or cools off from the highs, and basically comes down in price. This consolidation period is characterized by what many refer to as a "low volume pullback." What this means is that the buying pressure has dissipated, and some sellers have entered the market, but the good news is that the consolidation volume is lower than the bull run volume. (Many times the volume will decrease below the daily average volume during consolidation.) This particular consolidation period has found a trading range and trading channel that has formed what looks like a "flag" on the chart. This flag is characterized by the drop in price as well as the drop in volume. Once the flag's trading channel runs out of room within the "flag-like" triangle, a break will occur. During an uptrend, this break is to the upside, but if the chart pattern breaks down, it will occur to the downside, signaling a breakdown in the chart and it's bullish pattern. Another key indicator regarding the flag pattern, is the closer the flag gets to being formed, the lower the volume drops. This is key. As the trading channel tightens, so does the volume. A breakout to the upside will confirm that the bulls are back in control of the stock, a bullish resurgence in volume will return, and higher trading ranges will be established. The current drop in price with low volume is exactly what traders want during a sustainable uptrend. Many traders will wait for a "break-out" to the upside of that flag as confirmation that the stock will continue to be bullish, and will enter after that "break-out." An entry after the upside breakout is less risky, but less profitable too. If an upside break-out occurs, the new low will be put in and the uptrend will continue.

Continue to add eigh and mesaq at current levels...

continue to add eigh on current pullback...essentially still buying other people's fear here for eventual large gains...I accumulate almost every day until we have found the bottom...also added to mesaq at .105 the other day to my war chest at .05 core...cemjq got knocked around today, but that was mm garbage...overall my account has pulled back about 30% in the past six weeks, but like my stocks, it continues to make higher highs, and higher lows...previous account balance high, will become new account balance low, as I march toward my goals...secret to my success? easy....learn to read charts...read the mor's and court doc's relating to my chapter 11 Q plays...level 2 access....maximize gains and minimize risk...that's how you make $$$...follow me to the promised land, and the green will set you free...ps....still hunting for my next winner....enjoy

Basics of Volume.

Volume is a very useful tool in helping traders understand how a stock is trading. At its most basic and fundamental level, volume is simply the number of shares or contracts traded in a security within a specific time frame. Time frames can be 5 seconds to 1 day to 1 year and beyond, depending on how a trader is trading a stock, security, or contract. For every buyer in the market, there is a seller, and for every seller, there is a buyer. When these shares exchange hands from buyer to seller and vice versa, this becomes what is known as "volume" of shares traded on an exchange. To keep it very simple, take a look at the following:

Buyer A owns 10,000 shares of Stock XYZ.

Seller B buys 10,000 shares of Stock XYZ from Buyer A.

The total volume on that trade between Buyer A and Seller B is 10,000 shares of Stock XYZ.

If this one trade was the only trade of Stock XYZ for the given trading period or day, the total volume for that day would be 10,000 shares.

Now within the basic concept of volume, there exists "buy" volume and "sell" volume. Buy volume and sell volume, what the heck is that? Well, again, to keep it simple, buy volume is the amount of volume dedicated to buyers in the market place. For every seller, there is a buyer, and the buyers are included in the "buy" volume. A buyer "buys" from the seller. Well, how do you know the difference between buy volume and sell volume? Seems difficult, but it is not. Buyers drive the price up. So when someone sees a stock price increasing, basically "buy volume", also know as "buying pressure", is applied to the stock, which drives the stock price up. I also like to call it "Bulls on Parade." Buyers are in control of the security whenever the buy volume is high, which creates a "bullish" market for the security.

Sell volume is the exact opposite of buy volume. For every buyer, there is a seller, and the sellers are included in the "sell" volume. A seller "sells" to the buyer. So when someone sees a stock price decreasing, basically "sell volume", also know as selling pressure, is applied to the stock, which drives the price down. I also like to call it "Bears on Parade." Sellers are in control of the security whenever the sell volume is high, which creates a "bearish" market for the security.

Volume and the direction of the stock will tell you if the market is bullish or bearish for a particular security.

Basic Bull Volume: High (Increased) volume + Buying Pressure = Bulls are in control, ie stock price is driving higher.

Basic Bear Volume: High (Increased) volume + Selling Pressure = Bears are in control, ie stock price is driving lower.

To sum up, volume is a key indicator that tells us a bull market vs a bear market and who is controlling these markets.
These are the basics of volume, and I will be writing more about volume as it relates to the "bid/ask" spread.

I have included a link to investopedia's definition of volume above in the title.

MESAQ Financials - Cash Flow, Balance Sheet, and Income Statement

Click the above link to review MESAQ's Financials.

CJHBQ BOOK VALUE ANALYSIS - DECEMBER 09 MOR AND AUG 09 QUARTERLY REPORT

Quick Calculation of BV based on the August 09 10Q and then the MOR Nov 5 - Dec 15.

On the last 10Q, which I have of August 09 only, none after that, I get the following Book Value Calculation:

CJHBQ Book Value Analysis based on Aug 09 10Q:

BV = Total Assets - Intangible Asset & Goodwill - Liabilities divided by OS.

BV = 208,453 - 320,154 - 532,762 / 77,773

BV Without Goodwill = -644,463 / 77,773 = - $8.28 pps

(now this is without any goodwill or intangible assets...this is taking goodwill completely off the books...and how it should be done, but goodwill impairments and writedowns were the way cemjq shows + bv as well - meaning goodwill is not completely taken off the books)

Now putting goodwill & intangibles back on the calculation:

BV = Total Assets - Liabilities / OS

BV = 596,427 - 532,762 / 77,773

BV With Good will = 63,665 / 77,773 = .8186 pps

(this is the exact # that is posted on yahoo finance...I am assuming they are including goodwill and intangible assets as part of their book value caluclation, though they should not...but based on that model, that is the basis for calculating cemjq's book value as well, I am assuming from yahoo finance perspective, and I believe it is the same way MC and others calculated Book Value - by...goodwill writedowns were part of cemjq's valuation and it will be no different here...cemjq had massive goodwill writedowns early on and these were significant in accounting procedures...)

Now Looking at CJHBQ's First MOR, the Goodwill looks to have taken a hit if I am reading it's balance sheet correctly...All #'s taken off the balance sheet:

Goodwill + Intangible Assets = 185,082

BV = Total Assets - Intangible Assets & Goodwill - Liabilities / OS.

BV = 1,083,685 - 185,082 - 735,953 / 77,773

BV Without Goodwill = 162,650 / 77,773 = $2.09

Leaving Goodwill in the calculation:

BV = Total Assets - Liabilities / OS.

BV = 1,083,685 - 735,953 / 77,773

BV = 347,732 / 77,773

BV With Goodwill = $4.47 pps

My own personal opinion is that BV is closer to $2 pps based on the MOR from these calculations, but I could still be missing something here...

On the MOR Balance sheet, What is the "Debtor Eliminations" column? What is it and what does it represent?

I am getting MOR calc's fromt he Debtors Consolidated Totals Column from the MOR.

I think further analysis of the MOR is good because a substantial part of the asset column according to the MOR is "amounts due from insiders" and this # is 350,564...what does this mean?

CEMJQ and CJHBQ Weekly Chart Comparison/Analysis

Comparing CEMJQ's Weekly to CJHBQ's... CEMJQ early on, although she had some explosions, she did not have one quite this big until that move from around .13 to .48 on the weekly...it had a nice run from above three to low teens in a two week trading period before a little consolidation prior to the monster run to .48...

For those holding CEMJQ, she is churning nicely here in the 1.20 range. More churn than we have seen before above $1 pps post bk. I think this is a very good sign...Now Chemtura idled in this $1 to $2 pps range for about 14 to 16 weeks according to the weekly chart prior to it's massive drop. Since hitting the 1.48 mark late in 2009, she is starting week 13 of her current rebound from that high next week...Hmmmm....makes one wonder...

Look at the 60 minute chart...that chart is getting ready to pop... CJHBQ basically moved from the .03's to almost .12 in a week...not too shabby...and showing power just like CEMJQ in the early days...The daily chart shows some resistance in the .20's but it's the daily chart (also reflected on the weekly as well), - expect some profit taking and consolidation when we get there...beyond that, the weekly chart shows resistance in that .50 to .75 pps range. After what happened this week, I'd say it's not a crazy idea that we can't get to .50 pps much like CEMJQ did. That being said, if you had told me we would've almost hit .12 pps this week, I woulda been laughing...But it goes to show you that we could be sitting on much bigger upticks here even with consolidation along the way...

Now, what I like that you have stated before is that we have a low float w/ an os of 77 mil... This week proves that CJHBQ - once she get's some buying pressure under her belt, game on just like CEMJQ... We could be on the start of something big here. Time will tell. (FWIW...I am still holding all CEMJQ shares and have been adding since the Spring.)