Thursday, December 21, 2006

JSDA or a secret behind "The Cramer effect"

Was not really going to write any more "educational" posts till New Year, but just saw something which really winded me up, so lets talk about ... Cramer.
Who would expect me to talk about Cramer who serves as an entertainer to "1999 like zombies crowd"?
Well, I just would like to point out that so called "Cramer effect" is not caused by extraordinary power of persuasion of Mr. Cramer and ( to a lesser extent ) by stupidity of people who follow his "advise", but by very good team of technical analysts.

JSDA appeared on my scans few weeks ago satisfying my scan criteria: small float, reasonable institutional holdings, nice short interest, close to 52 week high ( I cannot say that I agree about Mr. Cramer statement about solid grows - JSDA missed badly last quoter).
On December 15,18,19 chart of the stock which was poised to go up formed "stepping" pattern ( I'm not really good with fancy candlestick patters, so you'd have to forgive me - what I see and recognize is based on my many years of mistakes ).
Dec 20 stock broke out gaining 14% on above average volume, next day - really big volume, I just wondering as WHO was buying - but stock does not move much and sit sooo close to 52WH where overhead resistance is nearly non-existent.
And here it is 6PM and here comes "Johnny", oh, forgive me - JIMMY, toting JSDA as next HANS and, you guessed it right - stock takes of in after hours trading.
Look at the chart ( I even decided to post the chart which I don't do very often, so you'd see what I saw ).