Ron, sorry to hear that happen. I've been there before and it is not a good feeling. I think ECX has been FAR oversold. Sure there should have been a reaction to the news, but like always, the market far and away OVER-reacts....(to the bad side or to the good side). Right now is where a lot of the big money gets made, as the stock will inevitably bounce back and eventually find its equilibrium. There are a number of reasons why this is a screaming buy right now. Here's a few of them.
1) Anyone short will start to cover, driving the price up.
2) New money will come in as investors see that it has found it's bottom (an awareness that began today), driving the price up.
3) The bad news is out and now over with, and the company seems prepared/willing to do what is needed to correct the situation. Once the immediate dust settles (usually within 1-3 days), the buying pours in at bargain prices.
4) The day boys will come in looking for the inevitable bounce back up. This adds volatility in the short term while they have their fun, but their buying does help (and exaggerate) the bounce back up.
I've seen this scenario played out time and time again. Those who were long and sold (usually at or near the bottom) all of a sudden wake up and missed a very decent bounce back up.
For the record, I earn my living as a day trader. When it comes right down to it, I'll try and make money on the way up of a stock and /or on the way down. It doesn't really matter, and each day truly is a new day. I guess all I'm trying to say here is that after playing the markets quite intensively for a number of years now, this one has all the markings of a strong bounce back up. Time will tell, and I've been wrong before, but right now this looks very good.....all the things that I look for in a far oversold company. The intraday chart today supports the theory that the bottom is there as well. Tomorrow odds are I'll be in, and hopefully not be buying the shares of anyone here.
All the best everyone. Whether you're averaging down, or waiting for the bounce back up, or just having to get out for whatever reason, here's hoping that somehow we all make a little spare change along the way.
Regards,
Kevin
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