The morning dive is profit taking but at what expense. I'm surprised this didn't run up a bit more before someone took a daring chance for profits. The double crest Friday must have led them to believe it wouldn't run more. So now they have to buy back but others are eating up the shares making this more expensive. That will force them to sit on the sidelines and hope somone else makes the same mistake then they can buy back in. But this is a ripple in the big picture. Once we break the $1.58 level then above that we will see competition for profits. If the previous RE is fully restored and no one risks a profit the tension will build. This could create a case where there's several people dumping at the same time.
As I asked before, will they get burned? There's probably a number of bigger traders trying to work out the logic in people's heads. I know a number of you who are under water until we restore the balance so what will you do? I'm betting a number of people will lighten up. Then after a few days when nothing happens they will buy back in slowly. The big fish will have concluded the same thing and be waiting. So you set yourself up by doing this. They drive the price down 10 cents and your under water again. Salvation comes from a fast buy out or another big announcement. And so the cycle repeats.
People who bought in very low do not go through these feelings. Instead, they use that to their advantage. As the FS approaches things change. But this could be months away. I have the feeling it is closer than people think. In reality, they could put it out in 2.5 months. Now that would catch traders off their game. If this was our first attempt at the FS I'd say 4 months or more and be quite right. But this is not our first try.
