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Message: Volatility and what it means

I was taken aback at the sudden drop starting at 3:40pm luckily it rebounded a bit around 3:55 to close. 

My analysis was that it was trading quite strong and would hold the 3.40s. The volume is not strong enough to indicate a lack of confidence and could be what i suggested earlier, short sellers taking advantage of illiquidity to take out some retail stops at the 50dma. And the fact it happened so late in the day tells me that whoever did it wanted to surprise the market before the weekend.

possibly to stoke fear that something bad is on the horizon. Volume still not strong enough to confirm anything of significance. If it continues into next week will be disappointing. There is the possibility of some shareholder to offload some shares that were bought before the 2018 jump to lock in gains before top line.

 

good weekend to all !

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