Friday, August 01, 2014 10:28:45 PM
Actually, the appearance of "solid" support makes the whole short/dip/bounce game much easier and more profitable IMO, because when it "breaks" the panic sets in quickly, and people who, for example, follow the strategies endorsed by certain chart-loving traders sell like crazy (hence the phrase "we got claytraded" tends to appear often after huge selloffs following a break in supposedly "solid" support).
We saw this here today when .0017s started hitting big after some small 10k sells at the bid chipped away at it for awhile. (I'm recalling this from memory of what I saw today not looking at the actual tape so forgive me if I'm a little off). Then some small sells (probably shorting) hit at .0016 and the flood started quickly after that, resulting in those .0012s hitting within a matter of minutes.
Basically, this is what happened:
We saw this here today when .0017s started hitting big after some small 10k sells at the bid chipped away at it for awhile. (I'm recalling this from memory of what I saw today not looking at the actual tape so forgive me if I'm a little off). Then some small sells (probably shorting) hit at .0016 and the flood started quickly after that, resulting in those .0012s hitting within a matter of minutes.
Basically, this is what happened:
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