Volume Spike Investor

Netlist Inc. (NASDAQ: NLST) gave back one-third of its price yesterday.  The stock is starting to remind traders of K-Tel from the 1990’s.  While there is no real news, the stock already hit its inflection point of buyer exhaustion on Monday.  This used to trade under 100,000 shares, let alone anything close to 1 million shares.  But the volume was 3.3 million last Thursday $2.07 close, up $0.73) , 11.4 million last Friday $4.47 close), 25.7 million on Monday ($6.24 close) and 13.3 million yesterday ($4.10 close).  Shares were indicated lower by 2% before the 8:00 AM level this morning, and at 8:20 AM EST we have seen almost 100,000 shares traded and the stock is UP 3% at $4.23.

Even at $4.00 this stock is still up over 300% from early last week.  This stock is probably just going to be a momentum trading stock that gets chased up and down.  In short, the chart has now entered the drunkard territory where it may just bob and weave around in any direction for no real reason.

JON OGG