RE:More volatility for BB, but now with higher highs? Yasch22 wrote: Lots of great posts today. Even a couple of the negative ones helped to shed some light.
A few thoughts on the volatility.
1. On a very regular basis in the past year or more we've seen some outsized exuberance after a good announcement, even if it's been nothing more than a better-than-average financials.
2. Just as regularly the surges in the sp are followed by big and equally confusing pullbacks.
3. It suggests that BB still has a lot of "mind-share" from skittish investors. This supplies a bigger-than-average amount of rocket fuel on the better days, but it also supplies a bigger-than-average wet blanket bring the sp back to earth.
4. Perhaps the cycle has become part of a self-fulfilling prophetic circle. Former investors like Willma pop in to check out the excitement of, say, the AWS announcement, then feel a bit like suckers when the financials cause a drop for being slightly below expectation, and then are pretty quick to get out at CAD$14.25 (or US$11.22) because they've made 40% to 50% in six weeks.
-- Next thing you know we're back down to CAD$12.50 (US$9.84).
Summary:
-- this week, the sp rose from CAD$9.28 on Monday to a high of $11.74 on Thursday, and then a fall back to $11.46 by the end of the day. I'll bet a big part of the late-day drop was due to profit-taking.
-- Friday: An early morning surge to $14.70, and then a steady succession of lower highs and lower lows, though the last hour saw a run from $12.14 to $12.48. Note: after hours on the NYSE the sp dropped by another 3%.
-- All in all, I'm pretty sure the sp will hold a good part of its gains from early Monday to late Friday. I remember feeling very pleased on Thursday morning to see that the sp had gone up by 66 cents, thinking "wouldn't it be great if we could end the week at $10."
So, now we're looking at $12 or $13 to end the coming week?
Complaints?
Two things i like fundamentals to gage Real growth. Secondly a lot of Robinhood types investing for a quick buck spooked me. Will be looking for fundamentals soon on revenues , and a long weekend in the USA to see if the Robin hooders find another lover over the three day weekend.