It's the issue of Wells Fargo...largest mortgage bank in the country, saying that the mortgage business is slowing. Check out their earnings information. The market is forward looking. They are telling you that they don't feel good about the mortgage business going forward. They don't care about what they did in December...they care about the future. And then, the shorts have more fuel to run it down...this is what I predicted yesterday, unfortunately.
The market is more effiecient in larger more liquid stocks, the market is not "telling" anything on this stock other than a 10 million share float is being manipulated by shorts, nobody wants to jump in until after others do, and when it falls they want to get out before the next guy, which is exactly why the shorts sell at the open and it craters all day. Other morgatge companies are trading at p/e's of 14, and this one is 1/3 of that, and they are in two other businesses as well, it's just a magnificent short attack, and the SEC could care less.