no$: Its a coordinated sale of shares aimed at diving shorts and nervous Nellies out of the market creating even greater selling and thereby driving the price down even more. The phenomena is usually preceded by heavy negative comment by the collaborating sellers or their henchmen (sound familiar?) and usually perpetrated on firms going through trying times. The shares sold are then picked up at low prices by the perps.
The practice is highly illegal but it takes place all the time as the SEC has bigger fish to fry.
Simply selling a large number of shares by an individual or fund and subsequently driving the price down and then buying back at lower prices, as others sell out, is not illegal and also occurs all the time. Collaboration is the key word.
Jim Long and calm
Sentiment: Strong Buy
I do think $4 is a strong likelihood at this point. I also think the run-up is probably done as well. We might bounce to $5 or $6 from $4, but with results near, I'm wagering a lot aren't willing to take the chance and are bailing out. Thought it would be otherwise, but the lack of a bounce after this last huge retrace and the breaking of the 20-day and now the 50-day leave me to believe we likely aren't going to get back to the run-up highs before data is out.