A nice, orderly, low volume pullback provides buying opportunities.
A 9% selloff on massive volume, coming a day after a low volume breakout to new all time highs, on a day when the indices notch new highs, is not good.
I took a beating today after adding yesterday. I don't know why I didn't sell. This may turn out to be a huge mistake.
A lot of times, when a stock loses its 20 day average on high volume, it goes on to test its 50 day. Right now that is just under 33. I would tend to think institutions would step up and buy at that point, like they did in late December.
Typically these pullbacks come during overall market corrections. The fact that it came at a time the market is making new highs is very concerning.
I am hanging on but something smells rotten here. I would not be surprised if next week's earnings were leaked an institutons did not like what they heard and are running for the exits.
This action is similar to AXTI last week. The stock lost 8% in one day. Since then it lost another 18%.