Philosophical comments: I've been watching this stock for the last couple months. I saw it had reached a plateau in July. Now my retorical question: what made the stock run up to 65? Obvious answer: buyers outnumbered sellers, driving the price up. Who were these buyers? Speculators, obviously. Now we have a stock which has run up on speculation. So the victorious speculators ask themselves, do we wait in suspense for 3 weeks until the co reports earnings, after which even if they do beat expectations, there may not be much room for further price improvement (given the run-up), or do we take the profit now, and sleep like babies with our profits?
The answers here are obvious. The risk-reward ratio of holding on without selling from now until Oct 23rd just wasn't there. I would almost guarantee that the stories of the rumors came out after the stock started to fall. People were quick to pull the trigger, and lock in the gain. IMO, you people here are very fortunate that Spectrian came out with a public press release so quickly, before some real technical damage was done to the stock. As it is, the stock bounced sharply off of the $44-45 solid base. If you bought at $45, you still have an 11% profit in a short time, which is nothing to complain about.
People who bought at prices higher than about $52 were chasing a stock which was extended more than 15% above a base, which is not recommended.
Sorry to sound preachy, but a lot of you are complaining about rumors, when in my opinion today's drop was simply as I outlined. Again, just my opinion. It always feels better to blame the MM's, the shorts, etc., and sometimes I'm sure shorts do start rumors. But sometimes a stock is just ripe for a fall, and the risk/reward senario doesn't rationalize keeping the stock, hence the "rumor" expodes into full-scale selling.
Happy trading, people.
DK |
