Definitely true. Heck, i've been flipping my shares too since I know I have a good probability of that being the trend given the current macro environment. Nothing to sneeze at to buy around $0.60 and sell $0.80+, percentage wise.
The problem is that once a pattern like this gets established, even people who are not usually flippers start trying to take advantage of the pattern -- Thus reinforcing the issue. At some point the increasing quick-selling softens the size of the rallies and thats when the stocks continue on their downward path, bottoming lower every time. Thats the danger pattern everybody needs to watch for, IMO. Hopefully a big Q3 (as expected) will be enough to break such patterns before they get entrenched.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.