Psycho Babble Listen up rookies! We had four days of high vol./high price. The traders..call them swing and day traders jumped in the first day on news/price/volume and rode it up for a good profit. Then yesterday and today the volume drops significantly and their trading platforms tell them they better put in their stops and their ratchet stops accordingly. Other words take your 30,40 or 50% profit and head for the hills. They start selling off because their intraday tells them to and from there it becomes a self fullfilling prophecy especially with ratchet stops.
Text book sell off and if you believe in this play like I do then you can consider this a healthy correction as if this went super parabolic then the correction would be even more vicious and a lot of traders/investors/speculators would have taken a severe beating. Watch the volume dry up some more in the coming days and establish a bottom. From there we should establish more stable hands and slowly move up unless of course we have news. I usually play the trade for a quick 10 to 20% profit but for now I'm holding with 60,000 shares till I figure this out. Also watch nickle charts on the LME and the big cap nickle stocks to give you a sense of direction.