Seeems to me today's drop was due to lack of buying pressure. Funds that were holding were letting the specialist walk the stock down, then they would buy what available shares were being taken out by stops. If you look here, http://host.businessweek.com/businessweek/Historical_Quotes.html?Button=Get+Quot es&Format=0&Type=5&Symbol=CBG&StartDate=07/01/05&EndDate=07/01/05 on the minute by minute composite trades, there wasn't much volume taking it down, where as it would almost always end of the high for that frame,telling me that it was being walked down. Long holiday weekend, pull your buy orders off the table and watch where it goes, then accumulate small positions that are being taken out without raising he price all that much. JMHO
The answer is very simple. A sharp runup, usually causes profit taking, in an overbought condition. Any good trader will do it. It's just a case of supply and demand. Too much supply, and too little demand. The uptrend is still in tact, and the price will resume it's climb after a brief rest. Just let it settle down for a few days, until it gets over this temporary shock it's causing people that worry at the drop of a hat. This is not the best time to add shares... YET. Patience is golden. Relax, take a nice long weekend, and before you know it, all your needless worries will be just a bad memory. If it goes down two or three more points, then you might consider adding a little more. If you have fireworks, don't blow up the kids.
I agree and disagree. I still feel the same way as I did on my 7/24 post. CBG still looks okay, but this drop today is unusual. I took a profit today and will get back in if I'm wrong. But, if you noticed, a lot of leading stocks have met with fairly large profit taking in the last 2 weeks...GOOG, KOSP, CBG, MCRS... I still think the market is heading down until it tells me otherwise. The low volume is only due to the time of the year. I don't think the volume will pick up no matter which way the market decides to go.