I stand with you SVP1 with 41 million shares. This the TIME TO ACCUMULATE the SHAKEOUT!
"BUY THE FEAR & SELL THE CHEER"
DEFINITION of 'Shakeout'
A situation in which many investors exit their positions, often at a loss, because of uncertainty or recent bad news circulating around a particular security or industry.
A market professional may want to accumulate a large position in a stock; either for his own account or for a major client. How does he/she do this? If he starts placing buy orders in the pool, he will chase the stock up sky high, without being able to build a big enough line. The golden rule is: buy into weakness.
Patience
The professional bides his time, waiting for the stock to consolidate or start a short-term correction. He knows that trading will be quiet during this phase: buyers lose interest for a while and look elsewhere. He also knows where most traders have their stops.
In a strong-trending stock, most traders will seek to lock in profits by placing their stops below the previous short-term (or intermediate) low. In a consolidation they tend to move their stops up to just below the base.
A few well-placed sell orders on a quiet day will drive the stock below its' support level. Stops are triggered, sending a flood of sell orders into the market. Everyone takes fright while our market professional steps forward and scoops the pool; buying in the face of the correction. Selling dries up when the stops are filled and the stock soon recovers back into its normal trading range. Everything returns to normal; except that our market professional now has a sizeable parcel of stock, accumulated at bargain-basement prices; and a group of punters curse their luck while the stock soars into the stratosphere.
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