As can be seen in this chart, there was a sudden explosion in trading volume yesterday:
In early November, it took 1/10 the volume to rally the share price to a peak of $6 as it took today to rally the share price $1.10
While normally an increase in interest for such an obscure stock would be bullish, especially for those of us already holding it, this burst of volume might not prove to be a good thing.
This volume is a result of heavy paid promotion, and massive selling by those already holding shares - presumably insiders or related parties given how few shares have been bought in the open market thus far during the stock's brief existence. They've every right to sell, however it's a shame these persons are not allowing the price to rise first. That'd be the norm when this type of promotion is undertaken.
Hopefully they're not dumping due to negative corporate events, as yet not publicly or widely known. What we do know is that this kind of selling often marks a high, thus we suggest being particularly vigilant and not overexposed to this issue.
Don't be overexposed to any equities given, as we argued yesterday, a market top seems imminent.
Readers of this blog should not be surprised by the most recent plunge in gold.
UBS, among a great many others, is late to the realization that gold is not going much higher, if any higher, any time soon.
Expect analyst expectations to continue lower for a long time to come, along with the price of gold.
We recommended selling and shorting at the top, while the vast majority of analysts will not recommend selling until the bottom. Recall the widespread analyst downgrades to "sell" near the end of the 2007-2009 bear market.
Gold and silver are both currently challenging 52-week and 7-year lows. With that in mind, we suggest our posting dated Monday April 22, titled "Clutching At Straws, Still Drowning", is a valuable re-read, and a must for anyone long gold or surprised that it continues to drop.
Disclosure: I am long OTCPK:MDDD.