1. Relax. No one suggested betting the farm here.
2. Anyone--long or short--who consoles themselves when a stock is moving against them by citing order size in these stocks is whistling in the dark. Trading desks are risking less capital on market making these days (for good reasons IMO) and, consequently, both institutional and retail trades are getting snagged by ECNs. I find this development kind of troubling, since it suggests that these stocks are even less liquid than they look. Works both ways, of course, but plunges tend to be faster and scarier. There have, incidentally, been good articles on this subject in TSC and the New York Times in recent weeks (sorry, don't have links, I read them at a web cafe when I was on vacation last month).
3. I don't think you have to be a hard-core bull to accept that a new high, on respectable volume, is a bullish development. At least, I would have considered it a bearish development if the stock had faltered here, and I suspect you would have as well. I will certainly start to worry if the stock reverses back on higher vol. next week.
Best of luck. |
