Price and volume were telling the story long before the announcement yesterday. I didn’t see the action in OPBL because I shy away from lower priced stocks but it’s just another classic example showing how technical analysis beats news to the punch! Fundamental analysis could have also clued in an investor as sales and earnings were increasing but the up-trend and huge volume were the ultimate clue.
I only found out about this story because I am shareholder in NMX and I get news stories sent to my inbox. Take a look at the charts in this blog entry and study how “someone” knew something was going to happen. “Someone” always knows before the news hits the street.
For more about market news, technical analysis and fundamental analysis, see this entry: Do Not use Fundamental Analysis Alone!
BRIARCLIFF MANOR, N.Y., Jan. 22 /PRNewswire-FirstCall/ — Optionable, Inc. (OTC Bulletin Board: OPBL) a leading provider of natural gas and other energy derivatives brokerage services, announced today that it and three of its founding stockholders have executed a binding term sheet for an agreement with NYMEX Holdings, Inc. (NYSE: NMX “NYMEX”) concerning certain cooperative technology initiatives, the acquisition of a 19 percent stake in Optionable by NYMEX from its three founding stockholders and the issuance to NYMEX of a warrant which would permit it to increase its stake.
About Optionable
Optionable, Inc. is a leading provider of natural gas and other energy derivatives trading and brokerage services, headquartered in Briarcliff Manor, NY. The company provides its services to brokerage firms, financial institutions, energy traders and hedge funds nationwide. In addition to the traditional voice brokerage business, Optionable developed an automated derivatives trading platform. OPEX® is a real-time electronic trade matching and brokerage system designed to improve liquidity and transparency in the energy derivatives market. For more information about Optionable and OPEX please visit www.optionable.com.
About NYMEX Holdings Inc.
NYMEX Holdings, Inc. is the parent company of the New York Mercantile Exchange, Inc., the world’s largest physical commodity exchange. NYMEX offers futures and options trading in energy and metals contracts and clearing services for more than 250 off-exchange energy contracts.
Through a hybrid model of open outcry floor trading and electronic trading on CME Globex® and NYMEX ClearPort®, NYMEX offers crude oil, petroleum products, natural gas, coal, electricity, gold, silver, copper, aluminum, platinum group metals, and soft commodities contracts for trading and clearing virtually 24 hours each day.
Ain’t it funny how the chart gets the news first?
And that’s why I love charts, especially the price and volume bars!