IKN

Thy sin’s not accidental

This one especially for hot-fingered subscribers

Reader ‘NJ’ writes today with a good example of something we’ve been discussing recently over at The IKN Weekly. Take it away, NJ:

Hi,
 
You want to see a good example of the ”not piling in on a recommendation’  that you have been writing about in some last issues? Look at Aurion. Brent Cook (I am a subscriber) mentioned in his recent letter that the pop on 01-21 seen in Aurion was due apparently to a recommendation by Jim Dines. 
 
Look at this info from Yahoo for the last two weeks. The stock popped from $0.35 to $0.80 on Friday on a volume exceeding 1M shares.  Closed at $0.65. On Monday, the price dropped to $0.45 on a volume close to 2.5M.
 
Patience anyone?

 

Prices
Date Open High Low Close Volume Adj Close*
Jan 24, 2011 0.60 0.60 0.45 0.45 2,431,100 0.45
Jan 21, 2011 0.35 0.80 0.35 0.65 1,054,100 0.65
Jan 20, 2011 0.35 0.36 0.35 0.35 106,000 0.35
Jan 19, 2011 0.35 0.35 0.33 0.35 124,500 0.35
Jan 18, 2011 0.34 0.35 0.33 0.35 218,200 0.35
Jan 17, 2011 0.33 0.34 0.32 0.32 51,400 0.32
Jan 14, 2011 0.33 0.33 0.32 0.32 60,200 0.32
Jan 13, 2011 0.34 0.36 0.34 0.36 30,500 0.36
Jan 12, 2011 0.35 0.35 0.34 0.34 11,000 0.34
Jan 11, 2011 0.35 0.35 0.35 0.35 12,000 0.35
Jan 10, 2011 0.33 0.36 0.33 0.36 112,500 0.36

Indeed NJ, here’s the chart to highlight the action and adds in today’s trading and 47c close. We even had AU.v issuing a NR saying that the big rush had nothing to do with anything at the company.

The problem here is the self-fulfilling prophecy. No, scratch that, the problem are ego-monsters that think this kind of market action signifies some sort of success.

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