Paul: Yep, that drop seemed to have come right out of the blue. But if memory serves, for the past couple of trading sessions the same exact type of thing has occurred, and at the same relative time in the day, too(ie. around the 11:30am timeframe). Let's make a guess, I'll guess that tomorrow trading will be in a tight zone, probably between $4.30 and $4.60 up until around 11:30, then it drops like a stone to the $3.90 range. What'cha bet?
What's causing it? Programmed margin selling going on? I know that the houses typically give their customers until 3/3:30pm to come up with the cash or exercise a trade. If neither is done by said customer, then they sell at market such holdings as cover the margin call. Is it possible this past few sessions of sudden drops is occurring because of this margin execution? Regardless of the reason, with the lack of VLNC coddling, the Asian flu and the high tech sector blowoff, I see nothing to support VLNC(excepting natural trading variations) right now, and wouldn't be surprised to see VLNC breakdown strongly, once again, thru the $4 floor. Another buying opportunity being handed to me by the gods of wall street. Let's just hope I'm not falling victim to the 'ol adage of "those the God's would make great, they first drive crazy."
But on another note maybe you're right. I should turn the terminal off and look again in January. It's just so, so, fascinating to watch right now. Like watching a house burn down.
John~ |
