CIND - It's On

CIND mounted a deliberate and impressive push from Friday's close of $.017 to a high of $.09 before closing the session at $.08 up 370%.  There were over 5 million shares exchanged through the day, some of which where likely exchanged more than once. 

At this point, after 3 consecutive days of buying volume, most of the free trading shares are out of the market place. What does this mean?  It means the share supply has dried up and any type of buying pressure will send the stock even higher than we saw today.  Also the rally can get even more explosive.

Let's also assume that market makers were busy filling orders with shares they don't have.  A few times today these market makers were trying to scare some sells by pulling the bid $.02 lower on a very small sell.  Since you and I have no idea what the bid depth is, other than the lead bid for each market maker, it is very easy to try and scare investors out of their positions.  Each time this happened CIND bounced back.... and then some.  It was entertaining to watch, and there is a good chance tomorrow will be equally entertaining.  The market makers acquiesced late this afternoon and CIND had robust buying into the close.  I think this will continue right at the open tomorrow.

The $.10 mark should be an easy target at the start of trade and if the float is indeed gone and in tight hands, $.15 could come in short order.  Just picture the market maker who sold 200k shares naked at $.04 today for $8,000.  He will be looking at covering those same 200k shares for a cost of $30,000 tomorrow... and that is just one 200k sale.  CIND traded 5.2 million shares today, who really knows for sure how many of those shares are real and how many of those were fabricated from the wand of those magical market makers? That is how a short squeeze starts.  Just as a panic can start when a price starts to fall, that same panic can cause a price to fly well beyond reason as the risk for a huge loss grows with each upward tick of the stock. 

With a CEO buying back shares on the open market, a low outstanding share count, a merger in the cards, this shell stock, that was dormant for over 13 years, has come to life in a big way.  The momentum and the trend is to the upside.  I think CIND will post another strong session tomorrow and head to $.15 an hour after the open.

I don't envy those short or naked short this stock.  It will be a long restless night and a big gap higher before the open will be evidence of that.