This morning presented an unique opportunity for me to dump my wonder penny stock called Yoma.
For the first time in its history, Yoma was featured in the cover story of the Edge magazine, over the weekend, with the economic liberalisation and lifting of sanctions on Mynamar as the exciting backdrop . Yoma was seen or heralded as the " maverick" , " Rising star of Mynamar " , the proxy gateway to the "last frontier" of growth for local players...
Add to that , the public was waiting with bated breath the announcement of sgx approval of Yoma rights issue which they hope to participate. Thus , newsflow-wise , the public was maximally bullish over this stock.
If I were the Yoma operator or retail punter , I could not find a better time to distribute or dump my shares now or over next few days .
Technically, I could not find a better moment to dump either. Yesterday
we had Yoma breaking previous historical high of 57.5c to close at day high of 60c. Then this morning Yoma opened gap up to 62c.
Thus we have the perfect "ecstasy" moment for this stock as it would have activated the "buy" signals of many trading systems that are used in the local market that rely on buying on breakouts of historical or recent highs , or bullish crossing/sloping of moving averages , MACD, stochastic, RSI , ADX or whatever "proprietary" single mom or double pop indicator one could find in the education market leading the public to jump onboard or add more this morning.
Many trading systems that rely on candlestick pattern recoginition would have activated a buy signal after yesterday market close given the long green candle yesterday leading the public to buy this morning acting on that "super-bullish" candlestick pattern detection.
Given all these circumstances, the set-up for dumping Yoma was almost perfect. Add to that I had expected the Dow to perform badly tonite, so i dumped my remaining Yoma holdings, all 600 lots, soon after open at 61c.
However I may get in later if Yoma corrects to some reasonable level ( maybe at 50c punt for a small transient bounce ? ..and maybe during the rights period as well ).
** Disclaimer -- this are just my private observations or hypothesis to guide my trading , not yours...... and I could be wrong in my hypothesis ... so read at your own risks.