Post #25 choses the top three losers every day, most days the 2nd and third losers fell far less than the #1 loser, and on far less volume.
The DCB theory of investing depends on mass psycology to work, the idea is that the market (us investors) tend to panic on a big fall and overreact, to get a really oversold position takes a lot of volume, and a big drop. Therefore the number two and three losers are just that losers, while the number one losing stock fell far enough and fast enough to panic a lot of holders into dumping their stock at a huge loss. The bigger drops, generate more attention, thus more volume, and yet bigger drops. The second and third stocks for the day often generate only a couple hundred thousand shares traded.
The only bouncing #2 stock in the past two weeks that I am aware of was MCSY, it traded 13 million shares while the big loser that day IDXX traded in excess of 20 million.
In comparison Thursdays losers: DLGC traded 1.55 Million, COTL traded 195.6K, and GLCCF traded 237.1K. While DLGC may bounce the trading volume on COTL and GLCFF is not even out of the ordinary for stocks with normal price changes, or even no price changes.
Based on the DCB of other stocks in this study, I would guess even DLGC will not bounce significantly on Monday. |
