Oh boyThat is why I advocate don't use stop losses, unless of course you are investing in China (Sino Forest).
1.Yes, the village idiot is right. People coming from day jobs tonight better stop by the liquor store and grab a nice bottle for tonight to relax if they had stop losses in.
Today's action is part of the game, however it has been taken too far. Markets in the green, great news, and SCG drops like a rock???
I hope the long term and rational investors don't get discouraged though by this action and simply say screw this and don't use this amazing opportunity to add to their position.
2.Remember the golden rule - Investing always comes back to sticking to fundamentals. Doesn't matter how much the company is pumped and trades on fumes and promises of riches, if it doesn't have assets, revenues, profits to back it up, it will eventually crash. Textbook example of this - Sino Forest.
3.SCG has fundamentals to back a $4 - $6 stock price at this very current moment. I have posted here before of how I came to this rough calculation. That $4 dollars is not even taking into consideration the potential of future growth - a big factor on which half the market trades at higher prices than us.
Remember this selling will get exhausted and once the houses finish loading up at these cheapies MMs will get a green light to unleash the coiled spring. Patience.