Day-traders and swingers are absolutely here. I was just implying that the current DXPE story lured a trader of that tendency or mindset and thus created exactly why they came in the first place, volatility. But, to say the day-traders swingers 'cause' the volatility is responding to surface layer of explanation. At least for me and the pea sized portion of brain I use to engineer my post. I'm sill holding from the sevens myself. Good luck with yours.
Thanks Idlike, I'm never bored reading your quality posts.
I agree with all you wrote except the part where you say daytraders are not involved. Maybe not daytraders, but I think there are more than a few swing traders that have gotten on, off, and on again over the past few regular cycles, contributing to the sharpness of the peaks and valleys.
I'm not going anywhere with my shares, and again, I appreciate the well thought out post.
"I just dont understand the reason for the wild price swings in this stock" - Bill_60137
Uncertainty is driving the volatility of this stock. Regardless of what any one says, all the talk of this quarter and the future of DXPE in 06 is merely speculation of what seems logical. Unless the CFO wants to but in here. Many speculate this will be a nice quarter, but how nice is the reason for the volatility in my opinion. There is not much history to found the speculations. Two quarters ago was a "blowout" and last quarter was OK considering the hurricane losses. A need for a really good earnings report is priced into this stock as it hits the 25's but start looking for history to justify it and get lost. As DXPE approaches the 20 area people swing back to the belief of a good price vs potential gains on likely earnings.
I think there will be a reduction in the volatility starting Monday and on through the next couple weeks up to earnings while gradually tracing upwards. I think we will then settle in the 25ish or maybe slightly higher at close on the day before earnings.
A good quarter this time will confirm the last report would have been really good minus the hurricanes and account for three vastly improved in a row. Upside scenario. A lackluster quarter this time will be paired with last quarters lukewarm report and make the best thing around here a fluke report two quarters ago. Downside scenario.
"day-traders" and MM's have nothing to do with creating DXPE's volatility. DXPE's situation of past vs future creates a scenario that makes people trade with uncertainty and thus the volatility. This next report will be a confirmation of sorts for people following DXPE and reduce the volatility either way.
On one of my other stocks BBBB a poster posted why is this stock down today? 5 seconds of research would have told the poster a downgrade triggered the drop. A fellow poster enlightened him on the downgrade as being the reason. However, the downgrade didn't cause the drop. Fear and uncertainty in the minds of the shareholders at the likes of BOA's opinion did.
Forget charting, ratios, balance sheets, pasts, futures, news, markets or all the various individual tools people use to make decisions on buying and selling. The psychology of shareholders drives stock price. Period. The things listed above merely justify the psychology of our decisions. To bad there is not a finite formula for psychology else we would all be retired. My opinions here and boredom induced posting... I guess that was obvious though.
Traders who make money selling and buying back and forth. This is not institutional selling or a bunch of retail dumping - it's manipulation to try and pick up a few bucks here and there. They don't care about fundamentals, company quality or anything of the sort - just how much they can move the stock due to the size of the float and other factors.
The bottom line is that this sector will continue to boom and DXPE will continue to grow at a rapid pace. Let the traders sell back and forth to each other - results will always outperform artificial manipulation.
What we have is across the board profit taking in the oil services sector. Investors like hedge funds don't buy and hold, they buy and sell to realize short term gains. They, in turn, distort the markets and market values for the stocks that they target.
But, just like today is a selling day, some day in the not too distant future, they start buying again and up it goes.
Isn't easier to say, a major correction may be underway for the oil service sector.
I think we will know for sure if the OIH breaks below $146.50.
If it does, it's possible we could see a pull back in the 15 to 25% range (off the 52 week high).
Not sure how that would impact DXPE's share price, but I would start backing up the truck near $17.50... IF the opportunity presents itself :)
The Nasdaq looks technically weak... message 8118.
Earning season is winding down (sell the news).
The Iran premium in Crude is wearing off (for now).
Natural gas prices are falling.
Inflation fears are rising.
And interest rates could be going higher than the market previously thought.