We can conclude that there is more than what meets the eye.
Facts 1. When a stock goes down sharply and there are no big bids, like yesterday, it was a Hedge Fund trader, who borrowed stocks from some mutual fund and dumped at the market. 2. When a stock goes up slowly like �15.65 Bid, & 15.66 offered, low volume like today, the same Hedge Fund is buying to replace the stock borrowed.
The above procedure determines the buying power and selling pressure.
When stock was going down, lot of amateur get out or is out with stop loss order. Now the next move is for the Long-term investors, they have to take a long position or sit on the sidelines.
Today near the close the stock volume and behavior will give us the clues to what mass psychology of the traders does to investments.
If you are a long-term investor, then please sit and enjoy more than double digit growth company. If you are a trader then IBN, SLT or INFY will give you more charm of watching market and investment grow.
After being up for 5 weeks, which is very unusual, RDY stock was down last week. Now the main news is out. Only if Technically, RDY moves on high volume, (Avg Vol (3m): 421,253) more like 500,000 today, we can assume the tide has turned. The Medical Group MRK, JNJ is being recommended, we could see some group strength and asset allocation.