By Tom Allinder
May 13, 2008

Over the last few weeks, I have been doing a mid-day market digest for email distribution on behalf of Investsource, Inc. Doing this sort of thing forces me to look at OTCBB stats on a daily basis which, is a good thing. In the past, I have looked at the stats and have been unimpressed by overall OTCBB performance. But starting last week, I noticed a change in trend… more on that later. You may ask, what do you mean by “stats”? Simply put it is: How many stocks are advancing, declining and unchanged along with volume etc. Seems simple enough; but, there are some other numbers that are just as important, maybe more important. These numbers can be found at Yahoo! Finance’s page at http://finance.yahoo.com/advances?u. It’s a really simple snapshot of the market. In the far right column is the OTCBB numbers. Again it shows you how many stocks are up, down and unchanged but look at the bottom. Right now as I write this, I am seeing that UP VOLUME is 463 Million Shares (42%), DOWN VOLUME is 438 Million Shares (39%). 212 Million are unchanged on the OTCBB. What does this mean? It means that there is positive action going on in the OTCBB. Here is the really important part: Last week these numbers changed from negative to positive. Does this mean that we are going to see a stronger OTCBB? If the trend continues, the answer is “yes”.

Trends are important. But more important is the CHANGE in trends. Many times I see stocks that exhibit positive technical indicators a week or two before the price actually begins to increase. The same thing can be said for all of the markets in general. Many times, the change begins to occur out of sight of those that are just looking at the “here and now part”. Often times people want to see sustained performance before they invest in something. I am more of the mind to see a change in trend from down to up and get in early. Why wait? If I turn out to be wrong, I lose only a little, if anything. But, if I am right, I maximize my profits. And, no one hates maximized profits, now do they?