RE:RE:RE:Quite anti-climaticsnootchybootchy wrote: We're still trading below the price prior to the flash crash yesterday. I think Bigboyone's friend is correct -- the shares traded up these past weeks because the FDA approval was seen as a given. And then it was an "avalanche of sells to see who can get out first" since most of the gains were already made. But that's ok. I remain long and will hold and wait to see where Mr. Adams leads us. I've tried day trading and just don't feel it's a very good use of my time.
No, it was not an avalanche of all these eager day traders trying to get out. They had plenty of exit time beforehand - at higher prices, too.
What happened yesterday was demand slowed down simply cuz people holding, were holding.
As demand slowed, shorts piled on (the supply). The shares offered on the ask (what you buy), were sold short.
Then, a large block goes through which triggers a downward drop - with the intention to hit all stops going down - to further aggrevate selling and cause fear and share price turmoil.
Sure enough, the fear continued in after hours and a bit in pre-market via selling. There was another attempt in the afternoon at this to break the 5.10 low and take it below $5 but demand was there and it did not happen.
No FDA announcement and every moron and their neighbour was convinced it MUST have been a failure because there was no news from FDA. Add aggressive shorting to that. And that is the disaster of emotions ruling your financial decisions.