We (meaning everyone as in you) are looking for an absence of selling by large institutions... so we aren't getting dumped on as this allows for an orderly rise of share price through bidding action. This type of ambient atmosphere allows stocks with solid speculative fundamentals related to sentiment trading to rise and establish trend...!
Finding stocks is accomplished by scanning for certain criteria that produces a large field of bullish prospects entered into a Public Chart List out of which only the best looking are selected, and moved to a Level II platform where they are watched in a research list... From there they can be researched so Kenuck Small Cap Trader can filter out plays that have not developed answers to the topics listed below...
Not all of the topics can be answered all of the time, however every attempt is made to cover them all.
A call to the investment department of a prospect is made, and the research is put to the person in charge, and the accuracy is verified.
Considerations such as icebergs, market yearly cycles...such as summer doldrums,tax selling, Santa Rally and the January effect are taken into account. Charting is then used to follow the most promising.
Market Motivators:
Shares - outstandingOptions - average strike
Warrants - average strike
Fully Diluted
Reverse Split Potential
Cash on hand
Investments
Earnings per Share
Receivables
Debt
Last Financing
Burn Rate per month
Level II - analysis is paper showing
Short Report
Commentary.... icebergs noticed etc.
Most important though... is the scan picks up on the established trend or newly forming trend from which long positions are entered by either picking a dip which becomes less of a risk on an established trend, or moving into a position on a new trend out of a consolidation, bottom pattern, or better yet a new issue.
Finding good looking trends usually indicates insiders and institutions are tolerant or not actively distributing shares... At this point you could say we are walking in front of the elephants. When the paper starts to show... we walk behind the elephants... swing and dip pick... if the charts say to.
If a stock has solid positive conditions of the elements of market motivators listed above... it equates strong charting speculative analysis based on fundamental considerations... we post it to the Current Trade Page of the Kenuck Small Cap Trader blog for consideration. Most of the time... spotting a good trend means we are in the cycle of accumulation. Solid speculation with volume will be our friend!
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