I came across this stock the other night when it was trending on Twitter and took a look at it for the first time ever. Apparently Vimco is a holding company that's touted for one of its assets being the "TikTok competitor" Lomotif.
Personally, I think people who are bullish on app clones of big apps are delirious because the reason those big apps get rooted by the establishment are for reasons that have little to do with their technology and everything to do with what is behind them.
In TikTok's case it's the Chinese Communist Party behind them, via parent company ByteDance, and the purpose of the app is to indoctrinate young people and have them waste a lot of time competing with influencers and trying to be an influencer.
The thing about a grooming and indoctrination app is you can't have competition. You need just one that can cannibalize the entire market and hold everyone's attention.
Regardless, I'm a big believer in price action. So long as Wall Street banks are holding an interest in a stock, I think that price action reflects the cumulative knowledge of all market participants. It's the real penny stock pump and dumps you have to be afraid of. Once they get rugged there's no liquidity and they _will_ go to zero.
With BBIG, BlackRock, Vanguard, State Street, etc, all have significant holdings.
Before we start, I'd just like to say that I actually saw this pattern the night before and posted it as it began its fake breakout, just not in a formal TradingView call.
Anyways, this pattern is a pretty classic one that I learned from this dude in crypto in 2018 when Ethereum Classic made a similar play that yielded a lot of run, and fast. I didn't believe him, but the short end of the trade worked and then it pumped afterwards.
The idea is you first get this parabolic super pump that doesn't last. Then, it consolidates for a long period of time with descending highs and flat lows.
What's being exploited is that so many traders love these trendline astrology "technical analysis" ideas. So when they see something "break out" to the upside "against the trendline" they stop out of their shorts and get long.
Then it immediately sells off back into the triangle, and then takes out the bottom, and heads lower and lower, taking out all those poorly timed longs that bought in the triangle, treating the flat bottom as support.
Notable with BBIG is that there's a pre-pump gap in the 71c range and the all time low, which is also the pre-pump pivot low, is 67c.
I suspect that 67c will hold under the thesis that the MMs are actually heavy on the buy, but if the pump is going to be big, they may also turtle soup the very bottom.
Either way, you might think to yourself, "This isn't that realistic. This is 20%+ to the downside." And this logic is fine, but look at the range of the triangle breakout into the breakdown that just occurred. In a few days that was already 20%.
Late in October, BBBY printed a 35% pump in a few days.
A conservative target for the resulting pump, should it manifest as such, is in the $1.40 range. It may even take out the old pump high of $1.95. In short, you're looking at a 2-3 bagger, if all transpires according to plan.
Price action like this leads me to believe that it's possible that the Biden Administration really does have a ban on TikTok waiting in the cards, ready to be imminently played as social media chatter has suggested.
Additionally, I also believe that tech stocks in general are about to pump it and pump it hard, even though it'll just be another bear market rally. A lot of suckers are about to be brought in.
Well, with a stock like this you don't want to buy and hold. You want to get in and get out. A lot of these companies really have no fundamental value. If you want things to buy and hold, put your money in grocery stores, fertilizer companies, oil and gas, etc.
Things that genuinely make money from genuine business, instead of these jokers that pay some kids pennies to clone apps and then call it a $205MM valuation, which is what Vimco's market cap is at the moment. (That's tiny.)
But, be careful and don't be greedy with your upside targets. The world isn't in good shape at the moment and things can change at any time.
Significant geopolitical, natural, and cosmic events can unfold at any time.
Personally, I think people who are bullish on app clones of big apps are delirious because the reason those big apps get rooted by the establishment are for reasons that have little to do with their technology and everything to do with what is behind them.
In TikTok's case it's the Chinese Communist Party behind them, via parent company ByteDance, and the purpose of the app is to indoctrinate young people and have them waste a lot of time competing with influencers and trying to be an influencer.
The thing about a grooming and indoctrination app is you can't have competition. You need just one that can cannibalize the entire market and hold everyone's attention.
Regardless, I'm a big believer in price action. So long as Wall Street banks are holding an interest in a stock, I think that price action reflects the cumulative knowledge of all market participants. It's the real penny stock pump and dumps you have to be afraid of. Once they get rugged there's no liquidity and they _will_ go to zero.
With BBIG, BlackRock, Vanguard, State Street, etc, all have significant holdings.
Before we start, I'd just like to say that I actually saw this pattern the night before and posted it as it began its fake breakout, just not in a formal TradingView call.
Anyways, this pattern is a pretty classic one that I learned from this dude in crypto in 2018 when Ethereum Classic made a similar play that yielded a lot of run, and fast. I didn't believe him, but the short end of the trade worked and then it pumped afterwards.
The idea is you first get this parabolic super pump that doesn't last. Then, it consolidates for a long period of time with descending highs and flat lows.
What's being exploited is that so many traders love these trendline astrology "technical analysis" ideas. So when they see something "break out" to the upside "against the trendline" they stop out of their shorts and get long.
Then it immediately sells off back into the triangle, and then takes out the bottom, and heads lower and lower, taking out all those poorly timed longs that bought in the triangle, treating the flat bottom as support.
Notable with BBIG is that there's a pre-pump gap in the 71c range and the all time low, which is also the pre-pump pivot low, is 67c.
I suspect that 67c will hold under the thesis that the MMs are actually heavy on the buy, but if the pump is going to be big, they may also turtle soup the very bottom.
Either way, you might think to yourself, "This isn't that realistic. This is 20%+ to the downside." And this logic is fine, but look at the range of the triangle breakout into the breakdown that just occurred. In a few days that was already 20%.
Late in October, BBBY printed a 35% pump in a few days.
A conservative target for the resulting pump, should it manifest as such, is in the $1.40 range. It may even take out the old pump high of $1.95. In short, you're looking at a 2-3 bagger, if all transpires according to plan.
Price action like this leads me to believe that it's possible that the Biden Administration really does have a ban on TikTok waiting in the cards, ready to be imminently played as social media chatter has suggested.
Additionally, I also believe that tech stocks in general are about to pump it and pump it hard, even though it'll just be another bear market rally. A lot of suckers are about to be brought in.
Well, with a stock like this you don't want to buy and hold. You want to get in and get out. A lot of these companies really have no fundamental value. If you want things to buy and hold, put your money in grocery stores, fertilizer companies, oil and gas, etc.
Things that genuinely make money from genuine business, instead of these jokers that pay some kids pennies to clone apps and then call it a $205MM valuation, which is what Vimco's market cap is at the moment. (That's tiny.)
But, be careful and don't be greedy with your upside targets. The world isn't in good shape at the moment and things can change at any time.
Significant geopolitical, natural, and cosmic events can unfold at any time.
Comment:
In the box, out of the box, and back into the box.
Will it double bottom at the low? Best part about buying spot is you don't have to panic sell.
Will it double bottom at the low? Best part about buying spot is you don't have to panic sell.
Comment:
Imo this is going to pretend like the old support is resistance and then turn around and take out the all time low since a TikTok ban is really brewing.
Buy that raid.
Buy that raid.
Comment:
The fake support into resistance paradigm has been established.
New all time lows ought to print.
New all time lows ought to print.
Comment:
BBIG really did have new all time lows. I suspect there's high chances this one has bottomed.
1. Lower low
2. 50 cent big figure
3. Major squeeze killing short sellers
4. Retrace to the gap
5. Not that bearish when Nasdaq lost 3%
6. Chatter about banning TikTok has reached critical levels.
This isn't something you want to hodl thinking Lomotiv is going to replace TikTok. You just want to turn around an dump it somewhere over $1.
There's a reason the CCP's brainwashing tool is so popular and rooted in society, and it isn't because it's an easily cloneable video app. Other companies can't reproduce this.
1. Lower low
2. 50 cent big figure
3. Major squeeze killing short sellers
4. Retrace to the gap
5. Not that bearish when Nasdaq lost 3%
6. Chatter about banning TikTok has reached critical levels.
This isn't something you want to hodl thinking Lomotiv is going to replace TikTok. You just want to turn around an dump it somewhere over $1.
There's a reason the CCP's brainwashing tool is so popular and rooted in society, and it isn't because it's an easily cloneable video app. Other companies can't reproduce this.
And fast.