RE:The usual gameExactly, shake the tree and see who falls out. This sudden plummet also has a computerized AI feel about it: it seems the sector wide drop is too precise.
As small investors, we're up against this AI when trading. Through complex algorithms based on historical emotions of the market, the large fund companies are able to manipulate the stock so they win every time.
The secret is just like you said, try and gauge when the fund companies are about to sell after they've inflated a stock, and buy back in when they've exhausted the scared investors who sold at the bottom.
This can be done with bollinger bands based around pivot points. Of course, it's never easy to time the markets, but learning the basic technicals is a huge advantage.