AI
Saturday, October 14, 2006 3:14:36 PM
I think thats exactly WHY the stock dropped off the way it did. Stocks like that have a fragile ecosystem.
The stock was moving in a very predictable manner. Up a few percentage points a day... standard volume.
Suddenly, it was "THE WONDER STOCK." You had other traders boost up the PPS at irregular rates... volume increasing... the stock deviating further from its moving averages... It was not maintainable...
One thing that always seems to hold true about any particular trading strategy... if everyone knows about it, it no longer works.
The stock was moving in a very predictable manner. Up a few percentage points a day... standard volume.
Suddenly, it was "THE WONDER STOCK." You had other traders boost up the PPS at irregular rates... volume increasing... the stock deviating further from its moving averages... It was not maintainable...
One thing that always seems to hold true about any particular trading strategy... if everyone knows about it, it no longer works.
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