It is my good fortune to inform you that we are having a nice bounce in the after hour for the SP500. So far, the SP500 is up about 19 points.
Today drop was another attack on the investors’ psyche hoping to catch another round of panicky selling action. Imagine a group of short-sellers yelling “Fire!” and then be the first to run out the door expecting an avalanche of investors running out behind them. The short-sellers made a bundle hand-over-fist by buying back all the shares on the cheap from the investors streaming out of the door.
“Wow! We made a Killing!”
“Let’s do it again!”
A few days had passed…
And the exodus repeated again but with a little less fanfare than previous time.
“How come there were less people coming out this time?”
“They got wiser?”
You betcha that the investors got wiser. The next time the short-sellers yelled “Fire!”, they would find themselves to be the only ones running out of the door. The rest of the investors would be buying and the short-sellers would be forced to run back inside the door and covered at great losses.
That was a nice green (after-hour) bar bouncing back up after today drop. Tomorrow may be a big run-up day.
Since most stocks were down, there is no points in pulling up charts unless there is something worthy to discuss. I believe $BIOC action today is worthy for such discussion.
Giving today semi-panicky exodus, $BIOC was actually holding quite well. While some panicky victims dumped some shares at the market open and dropped price to low of $1.86, it was quickly bought up to over $2. Price gradually shifted down to $1.98 to close which was quite respectable considering. If the market is going to make an astounding bounce tomorrow, I believe $BIOC would also partake in the rally to reclaim lost territory.
“You hear that noise? That’s the noise of the trapped short-sellers banging their heads against the imaginary prison bars…”
$ARTH. while closed neutral, looked strong on the bullish side with a higher high and a higher low bar.
Isn’t that a good looking stair-step uptrend movement in the last ten trading days?
Needless to say, my port gave back 2.9% for the day which wasn’t so bad considering the hi-beta nature of my portfolio.
Main port: AMRN DMRC AKAO ONCY BIOC and 5.3% cash. Trading port: ARTH
My 2 cents.
Categories: Daily trading Journal