Following taken from Incredible charts - not my opinion. However, I do suspect that the "professionals" do not chat on HC. Will be interesting to see direction tomorrow. No news to drive 12m trades today.
The professional bides his time, waiting for the stock to consolidate or start a short-term correction. He knows that trading will be quiet during this phase: buyers lose interest for a while and look elsewhere. He also knows where most traders have their stops.
Adjusting Stops In a strong-trending stocks, most traders will seek to lock in profits by placing their stops below the previous short-term (or intermediate) low. In a consolidation they tend to move their stops up to just below the base.
For further details see Adjusting Stop Levels.
A few well-placed sell orders on a quiet day will drive the stock below its' support level. Stops are triggered, sending a flood of sell orders into the market. Everyone takes fright while our market professional steps forward and scoops the pool; buying in the face of the correction. Selling dries up when the stops are filled and the stock soon recovers back into its normal trading range. Everything returns to normal; except that our market professional now has a sizeable parcel of stock, accumulated at bargain-basement prices; and a group of punters curse their luck while the stock soars into the stratosphere.
BTA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
