I agree with all your points except the implication that the resultant anxiety from severe downward price movement is illogical. I would argue that it would be illogical NOT to be anxious about a downward movement ahead of what you believe is a positive event.
Also, I am no expert or seasoned veteran, but I have been around enough micro caps to know that often there are people and institutions that know things before the regular joe's holding common. Yes, this exists all of the market, but it is more apparent in low volume micro caps. Therefore, a major downward price movement before an event makes me think someone knows something I don't. They are playing with information I don't have. This happens all the time and to be honest, does in fact scare me a bit.