RE: Who's selling?
Sheila,
It's a mix. The weak longs are chickening out and giving
up their shares. My guess is that these are relatively
small holders and relatively unsophisticated investors.
They're the ones who don't check their stocks online,
and instead watch the closing price in the newspaper
every day, then sell at the open the next day. They
help push the price down at the open.
Second, there are the short-term investors whose stop-
losses are being hit. They saw all the good stuff in
the fall, saw Solomon Smith Barney issue a buy, and so
on, bought in a few bucks ago, and are now giving up
because it didn't run right on up to twelve or fourteen
for them.
Third, there are the shorts. By and large, they aren't
shorting now. They've already shorted. What they're
doing now is trying to slam down the closing price
every day. If you look at the intraday charts for the
past several days (until today), you see that the
volume has been very low, and long about 2:30 or
3:30 p.m. every single day, there's a rash of selling
(around 50k shares) that slaps the price down for the
day. This doesn't happen by accident.
Today was different, though. The intraday chart has
a different look. There's pretty heavy selling down
to 5, as people are panicking, but then towards the
end of the trading day, there's pretty heavy buying,
too, indicating at least weak support at 5. As you
can see from the posts today, several savvy investors
are thinking of accumulating more between 3 and 5 if
it trades in that range. I think you saw the beginning
of that support in the trading at the end of the day
today. I don't know where it'll bottom out any more
than the next person, but the pattern is very, very
similar to the last cycle, which hit bottom in the
fall around 3. Check out the charts for yourself.
I'm still long. Hell, if it goes to zero, I still
made so much money off of IOMG when it ran to its
high in 1996 that I'll still be net positive on this
company. Hehehehehehe. Thank you, Zip drive.
Cheers, Tom (long IOM) |
