InvestorsHub Logo
Followers 3
Posts 185
Boards Moderated 0
Alias Born 05/19/2008

Re: None

Friday, 05/07/2010 3:04:54 PM

Friday, May 07, 2010 3:04:54 PM

Post# of 18314
This would be a great capitulation for a uptrend up.

After capitulation selling, it is thought that there are great bargains to be had. The belief is that everyone who wants to get out of a stock, for any reason (including forced selling due to margin calls), has sold. The price should then, theoretically, reverse or bounce off the lows. In other words, some investors believe that true capitulation is the sign of a bottom.