Friday, April 13, 2007

One Heck Of A Shake Out!


Here is an intraday chart of SWHC. It starts at the open. What interests me is the huge shakeout that happens at 10:43 a.m. The stock fell hard and fast, and then came strong off the bottom to make a swing of .70 cents. Thinking about the psychology that is taking place is very interesting. You have 2 sellers, short sellers, and those who think there is a failed breakout. When the stock rallies off of 14.53, the shorts rush in to cover, and the weak hands that sold rush to get back in. I find these kinds of moves very interesting to examine. Although I am way long this stock, I was able to remain detached, kept my convictions about my position, and very very glad to be still holding my shares.

1 comment:

mdawsz said...

Nice, your widget indicates that you're on fire today!