Running Commentary on the SP Movements., page-14286

I doubt that HC comments can influence the price of a relatively high volume mid cap stock like AVZ.

Look back at the BIG (Big Un Limited) HC page. Since Nov 20, 2017 when BIG reached a high of $4.98, many forum members have been saying the stock is undervalued. Many were buying large amounts of BIG went it continued to fall. Lots of low-brow emoticons and "think big" posts filled with emotion. These are clearly not professional traders who are aware of different contributors (market, sector, company, trend) risk that influence the stock price. Most of the comments are a waste of time to professional traders. Meanwhile, while the HC BIG forum chat noise continues, BIG is headed down to $2.50. Falling in love with the company story during times of elevated market and sector risk will only end in tears for many. That's why professional traders distance themselves from public news and consensus, and exit when the chart stop loss indicates it. It is always possible to buy back in later.

For those traders not already in AVZ, these recent market corrections represent an opportunity to buy in at cheaper prices. High-Beta (higher volatility) stocks like AVZ, AGY, or BIG will usually fall more in comparison to our All Ords index. This is to be expected given that AVZ has risen more than 1,000 percent during the last 12 months.

The Dow Jones Industrial Average index (DJI) was way extended above the mean regression trendline, hence the current large correction was anticipated by certain traders. The 200-day MA is at 23077. The DJI is now only 3% above.

I track some of the top traders in the world via Twitter. Their position now is generally to stay in cash, and wait until the current market volatility settles. Shorting the market yet is not recommended because we are not yet in a secular stage 4 bear market phase. That opportunity will arrive later. US trader Mark Minervini has accumulated several millions from the market over some 27 years of trading. He has lived through multiple bull and bear markets, and is currently 100% in cash [1].

1. https://twitter.com/markminervini/