Negativity in the Microcap Markets; You will find what you are looking for…

By: Tom Allinder
April 1, 2008

Over the last few weeks, I have heard lots of complaining about the state of the OTCBB and Pink Sheet Markets. The truth is, a lot of the complaining is well founded I suppose. But, will complaining fix the market? I don't think so.

Those that use technical analysis (T/A) are having a field day right now. Lots of stocks are putting in short-term bottoms and are turning back up. So traders should not be complaining in my opinion. If anything, in a weak market, it is much easier to separate the winners from the also-rans and losers.


There are a number of resources for T/A but the easiest thing to follow on the net is over at InvestorsHub.com; it is the Fringe's Paradigm Shift Board. I have a link for it in the right column at HotStockChat.com; you can't miss it. Many of the big runners have been found there before they even started their runs over the last few weeks. If you can't find winners there, then there are no winners. No one is complaining over there.

How about the companies that are traded in these markets? It seems like the ones advancing over time are the ones that have good businesses, and keep their shareholders informed. The CEO of a company on the OTCBB said to me a few weeks ago, "Tom, I did put out a news release and nothing happened!" That's right, he put out one news release and nothing happened. A company's developments and business updates should be presented to shareholders and market participants on a regular basis.

There is an overall negative attitude out in the OTCBB and Pink Sheet marketplace. Negativity breeds more negativity and becomes self-fulfilling. Look at the companies whose stocks are performing well. I will bet that they aren't sitting on their hands crying doom. Quite the contrary; it's like I said about trading earlier, now is the opportunity for good companies to separate themselves from the pack.

HotStockChat.com
Gobabygobook.com

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