Ed,
Thanks, I understand why you are saying 10+ million shares downward, which is a mirror of what happened at the peak for Nextel's price. But, is that kind of action necessary for a stock to reverse? Do the week longs need to be shaken out, or can a stock just slowly turn around and gradually work back to new levels? I haven't followed price / volume trends for long, so don't have historical data to analyze this.
In October 1987, was there a massive sell-off for the market in general? If I remember the price drop in 1987 correctly, today's market has already come off its highs about same percentage as the drops in 1987.
I'm a little confused by your statement about October 16 or 19 being some kind of cycle panic day, but if Dow hasn't dropped below 7400 by then it may indicate a bottom. I'm sure it all fits together, I just don't see it clearly yet.
Thanks Ed,
Rob |
