Good evening/morning readers. I wrote this late Tuesday night and am just uploading it very early Wednesday morning, central time. As you should know by now, we had a terrible day in GoIP Global (GOIG) on Tuesday. We started with an aggressive sell-off followed by a few small bounces throughout the day only to settle down to $.008. The action today was depressing but not unexpected per my recent articles on Sunday and Monday as consolidation was necessary. What goes up must come down. If you got sucked into listening to others who said this stock will go up and never come down, hopefully you learned your lesson quickly.
If you’ve read my recent articles and have been involved in our Live Chat during the day, you’d realize I protected my capital these past few days and took profits in anticipation we could go lower. We have a psychological support level at $.007. When I say psychological, that is truly what it is. This breakout occurred last Thursday when we quickly move above $.007. We did not have an accumulation period at $.007 to call it a strong support level. However, we should have some fight in it because of the psychological negative of dropping below it as well as dip buyers looking to accumulate.
As I said before, if we break below $.0095 (which we did), I think we will break below $.007 as well so I protected my capital and will look to reinvest when the dust settles from the battle that has been going on. We now have a new resistance of $.0095 so until we break that with strength, I wouldn’t trust a move up from current levels without more consolidation or lengthy accumulation. I’d rather buy on the way up rather than predict emotional based bottoms. Too many young investors pick bottoms/reversals just because the price sounds good and sometimes because they are trying to convince themselves the pain is almost over. Self-awareness is very important in life and the stock market as well. I refuse to let my emotions get the best of me simply because I believe in the company and want it to succeed along with everyone else who is invested as a long.
So does this depressing action as of late change my long-term thesis? Absolutely not. Actually, it makes me anxious to find our bottom so I can reinvest profits and acquire even more shares than I originally had. Since I was not being greedy, I took profits on that amazing run-up and now I have more cash to reinvest therefore increasing the overall share count I’ll have when finished. Hopefully some of you followed my strategy that I lay out in my articles and Live Chat as you would have made some good profits by now. If not, you need to be honest with yourself and reevaluate your strategy as it’s probably not working for you and most likely giving you an ulcer as well.
This poor action as of late only changes my short-term thesis on when I should reinvest to make even more profits on the next run-up. However, the lack of PR updates from Sutton, when we should be close to officially launching the service, is becoming a concern to me. Most of us expected a PR by now to update us on the progress made for the launch. In defense of not having a PR, Sutton could be waiting to disseminate all the “sales ambassador” information first to all the individuals wanting to work with GOIG as well as fixing any kinks in the system, which I hope would only be minor this late in the game.
So Wednesday morning, I’ll let a new battle begin and see if the dust starts to settle at all. We could break below $.007 back to the levels seen in February. While others will panic and be frustrated, the rest of us who utilize a strong investment strategy, will have a clear mind, and plenty of cash to put back to work.
I actually utilized some of my profits in GOIG to increase my stake in Cord Blood America (CBAI) today. CBAI had a low volume day of accumulation around $.0085 so I took advantage of the recent pullback as I expect good news any day now. Schissler does a very good job of keeping his shareholders updated as of late so I will look for that trend to continue and hope to see an acquisition take place in the near future. Short-term, I’m very bullish on CBAI and as I stated before, this is a make or break year for CBAI. I’ll look to evaluate my long-term thesis as we receive more financials and hopefully make a nice acquisition. Do your own research to see if you agree and make sure you share these articles on twitter, facebook, digg, and any forums you are apart of. Get some rest and I’ll see you in the Live Chat in the morning. Good luck out there.
Mike
At the time of publication, Kudrna was Long GOIG and CBAI but positions can change at any time
