Wow...I hope no one got sick (or hurt) after that roller coaster ride today! I'm glad I had only a light breakfast.
I know I called for $1.00 on BMK in the near future but I didn't expect the future to arrive so soon, quite frankly. But all's good. A lot happened today and I spent considerable time this afternoon analyzing and trying to determine where we may go from here.
As much as BMK and other area plays are now taking on "lives of their own" and moving somewhat more independently (we were up nicely today, NOT was down) we of course are still not immune from catching a cold when NOT sneezes, so to speak. So the wild gyrations in NOT today played a major factor in the intra-day trading. If you don't have the stomach or the finances to dance with the traders, then just stick with your core position and hang on. No need to bail out now as higher prices are still ahead IMHO.
What can we expect tomorrow? I'm of the opinion that we won't see another NOT halt (and news release) until next week, so let's rule that out for tomorrow or Friday (still too early I think for further assay results, but that's just an educated guess). Very early on, NOT's news releases were fast and furious. That pattern has changed for various reasons which I don't have time to get into right now. Suffice to say they are getting some excellent advice on how to handle the information flow.
I do believe the next NOT news release will be very positive. I'm convinced they do have a major discovery and economically mineable deposit. Keep in mind, however, that no matter how good the next news release may be, the stock may initially sell off (buy on rumour, sell on news) before heading back up again.
The downside risk at this point on NOT, prior to any news coming out, is only about 10% from here in my opinion. I believe it is possible the "Dark Forces" may try to knock NOT down again tomorrow, either early on or later in the day, but support should most definitely hold at or slightly below/above the area of last major resistance, $5.00. If NOT is trading tomorrow within a dime of that $5.00 mark, I'm loading up the truck with as much as I can get, and adding in an equal amount of BMK which would probably trade down to around support at 70 cents. This is one possible scenerio to prepare for. Load up the truck big-time if it happens and if you can handle the risk because there is always risk in this game. The risk-reward ratio however on that move would be very favorable IMHO.
The other scenerio is that NOT bottomed out today at its lows, and we zoom back over $6 tomorrow and perhaps make an assault on $7 by Friday. Watch for the power of any move thru $6 tomorrow for any clues on how sustainable it may be. If NOT has difficulty getting thru $6, if it can't do it, it'll again be under attack. And that will have an impact on BMK.
One thing that's interesting is that the charts on the area play stocks look very positive. Is this just simply the area plays catching up to NOT, or are we to read something more significant into this? My theory is that the market is now starting to realize how big the NOT discovery actually is (and could be), and is now speculating on the next NOT. That interpreation suggests NOT, BMK, and all the area plays are still in the beginning stages of a hugely bullish move. NOT at $20? Very possible. BMK at $3? Very possible. Too early to tell now, though.
Hold your core position and trade if you have the stomach for it.
Let's make some more money tomorrow. GLTA.
