SNSN schreef op 16 juni 2016 18:03:
[...]
That's not surprising (before high-yield div) at low volume/liquidity and negative market sentiment, especially when the stock is traded by a (relatively) large number of small but "active retailers" (often trading just "long" at too "aggressive stops")....
If schematically, the game is trivial (and almost riskless in certain circumstances), as d/st-profs are playing fast both short/long:
- "short" (negative sentiment) --> easy taking "aggressive stops" (and too active retails take just "small losses" voluntarily trying to repurchase lower);
- closing "smoothly" lower at flat --> locking too "active retailers" (they just have taken "small losses", and repurchasing lower slowly by small portions)
May be repeated again and again.... the stock is going down at low volume/volume, and too active retailers are taking "small losses" again and again.... aggregating "small losses" into "bigger ones"....
There are many modifications of the above scheme.
Investors usually don't play the game --> volume is very low