Before I start here, let me state for the record: I am pro-DCLK. I am long.
I will admit that today's action perplexed me more than yesterday's. I would have almost felt better if we dipped hard today and went back up on Tuesday (or at least dipped more and came back). However with ALL THINGS CONSIDERED, today's price volatility could almost be compared to an old-time interest bearing bond IMO.
Market dynamics today (with a secondary offering & 295/137 point drops) would indicate in all due logic, we should have tanked today - AND THAT'S WITHOUT THE FTC PROBE!!!! I was pleasantly baffled to say the least.
Now, I hate MM's as much as the next guy. However, I'm pretty sick & tired of everybody's reasoning when a stock does not go their way to instantly point their finger at the MM's and accuse them of manipulation. Some of these people are so arrogant/greedy to forget that fundamentals and common sense (even though becoming more un-common) still account for something
HOWEVER :
With that said, I CAN'T find any logical reason that DCLK would have held strong today or gone up for that matter unless:
A. There was indeed MM manipulation at the behest of some VERY BIG boys to not let it tank (no investment brokerages mentioned). or,
B. The market really believed DCLK has been punished thoroughly and they got all the blood their going to get out of it. Now the healing begins and let's go forward.
Of course, why not both???!!!
Now if we just suddenly tank on Tuesday, it would tell me that the price was held up on Friday so those launching the secondary offering could get all their money at the expense of innocent people being drawn into a false sense of security thinking that the danger is over. A stock price not dipping during commencement of a secondary offering is almost uncanny.
I'm more willing to bet on my first scenario and declare that we all launch our own probe into what is REALLY happening should we tank on Tuesday. I am adamant on this and ask if those here agree with me on this course of action.
Fellow longs, please bear with me. But I have to believe there are those of you (being brutally honest here) see my point.
I am making this post available to the boards of SI, RB & Yahoo.
As it is my policy to never respond to bashers/naysayers, I will still hold this as such in this case. However, I'd be willing to hear well thought-out & sincere posts from those possibly disagreeing with any of my points of view. |
