Hello all!
I have a quick question for anyone who feels they can provide sufficient information. What exactly caused $GRPN's panic this morning? I was expecting another gap up, but it pretty much failed after hours, as well as premarket. Many of you called it, but how are you so confident in a morning panic for a stock that just got bought out by a company who keeps releasing positive press about the ticker? What warning signs do you account for when you predict a morning panic?
I suppose it isn't necessarily a "quick" question, but it is definitely one that I need answered. I'm just getting into short selling, as I usually dip buy, but so many stocks are panicking, and I feel as though I am missing opportunities.
Anyone is welcomed to reply, and I thank you in advance!
Ian
I bought and held overnight because this spike was really strong and I thought it might morning gap up. Cut losses for a 25$ Loss and the stock went really sour after that. Be cautious, don't force trades, cut losses quick, and be discipline! Take your profits and RUN!!
Review the video lessons. Focus on the psychology and basic s/r. Did it break support? Did it go green to red? Price action lower highs? STUDY
like people have said it was overextended on the daily but also what comes into account is the trading psychology and technical indicators. A lot of people who bought in the last two days never had a reason to sell, or take profits, so as the stock gapped down to red and put in a lower high in premarket it was an indicator that it may downtrend. so the people that were holding finally had their first reason to take profits.
also people sometimes buy and just put in stop orders, so when the stock opened down a bunch of stop losses may have gone off taking the stock down even more with market orders. so the combination of those two things with shorts piling on to the down trend it has the chance to cause a morning panic. Just a few factors to think of
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