RE: RE: Mini Flash crash uuu only I was not paying attention to UUU when the dip took place. I was going through a long list of stocks that had create new 52 week low. POT also created a new low. All day UUU was a non event & in green till end of trading day. Something happened in the last 15 minutes. One thing that I had noticed was that the bids on UUU below $2.40 were very very low & thin. I think lot of investors were not expecting the stock to dip below that.
Dip could be result of number of things. Algo mal function. Market sell order(s) that triggered stop losses. Or index fund / mutual fund selling to cover redemption. Late timing tells me that it could be a fund but the volume was not huge.
This dip lasted 20 seconds because I sold my crash buy shares within 20 seconds for nice spread & all kind of buyers showed up. I had to sell just in case another wave came & I would be able to loadup lot more. I had put in lot of bids at different prices but all trades were executed at $2.41 & $2.42. The stock did not budge after that.
During massive sell offs sometimes it pays to put stinker bids in number of stocks at different price levels. The technique is simple, crazy things happen if some one dumps big blocks & you get filled on stinker, sell it at the first bounce to make fast profit in a very nervous market. The present selling has been very orderly & gradual therefore I was kind of discouraged in doing that. I did this a lot in 2008 & previous massive sell offs. It works very well when there is melt down taking place in the markets like a 200 to 300 point drop. You have to be very fast with the right kind of a platform. Take what you can get. There is a risk if you are not fast enough & can get caught holding the bag.
I had thought of putting lot of stinker bids in UUU but this stock was not showing any weakness. UUU offers lot of value at these price & lot of investors would not be interested in selling at these prices.
The selling that will come at these prices will be forced selling like fund redemption selling. Some retail investors do sell in fear & panic. Yesterday URA the largest U ETF created a new 52 week low yesterday. I was wondering if there will be more U buying or selling at new lows.
I have been going through a very long list of stocks that are creating new 52 week lows. In the past few days there were quite a few gold stocks, They got a bit of bounce today. Most the stock besides gold that are creating new lows are resource stocks that are losing money. Stocks that are losing money or are not producing can lose upto to 80 % & more of their values. One should avoid them even if they are cheap.
Now there are all kind of good stocks at bargain prices. Still I could not convince myself to buy & hold any of them yet. Just would trade them.
At certain prices I will start accumulating UUU & would trade the swings.
Investors invested in the markets should have a plan to deal with every kind of a situation. This will prevent them from panicking & making impulsive emotional decisions. You should be prepared for every possible situation.
These are very tough times for long term investor. Still some can find opportunities only if you are positioned correctly in short term or have cash.
Beside all the world, JP Morgan problem Europe sucking money out of North America. Lot of money has been taken out of other stocks and is going to facebook, this facebook IPO is not helping other stocks. Some say JP may be unwinding resource position. Some investors have sold their stocks borrowed money for IPO some are load up to chase it.
There are too many things going on. Invest safely.