the multiplyer effect, page-130

Rubbish. Today was a good example of the manipulation that is a feature of computer trading programs.

THIS IS HOW IT WORKS

1.Holders are encouraged to set trailing stops.
2.Stocks that show promise of sharp SP increases are promoted to encourage volume trades.
3. When the records show that there are a lot of new spec investors and traders holding a computer trading program designed to continually sell small lots at a lower price to smash confidence and start a lemming rush of desperate sellers. Traders using credit, especially t+2 credit, panic and take a loss.
4. The bot trading can watch the closing auction and can act in a split second to maximise their position at the days end. (the average punter will not be able to change their bid at the end as their effort to post a last minute change will be ".referred".
5. Investors will be told " It had to come down because it went up too fast".

So let us examine the fundamentals.

1. EDE has a spectacular new product.
2. EDE has proved the product through detailed and extensive testing with outstanding results.
3. EDE reported commercial acceptance.
4. The economics of using the product have had detailed discussion on HC and suggest much higher share prices are justified.
5. Nothing changed that justified the sharp fall today.
6. There is no obvious reason why the upward trend should not continue.

I do not set trailing stops but I do set trailing buys anticipating that there will be manipulation that will be a buying opportunity. I did buy EDE today using funds from a sale of EDEO yesterday. The trades allowed me to swap EDEO, for EDE, equal number, at no cost.

I've said it before, I love this stock.