That is normal as we are at EOW and many daily/weekly traders are taking profit. Remember, this stock hit $37 just two weeks ago. It was, by early today's session, up some 20%.
That's what I was thinking about. ER is due in a few weeks and there have been some pretty good coverages the past couple days. Short interest, too has been going down this month.
I have seen this before. Gap up on news, all gains evaporate by mid day. Only to see good ol' bull run for weeks. Go and check ZIOP. Couple of months ago the stock sold out on news for couple of days, from $9 to $8. Then it staged 60% bull run to $14 in few weeks.
You can't judge major reversal ONLY by looking at how the PPS behaves. Heck, take a look at the sharp reversal in early Dec. The stock rallied some 30% in just four days, after tanking 30% in the month before, only to tank some 50% in the next three months.
For me, I look at other indicators beside PPS move. I look at short interest, news, sector behavior. Look at TWTR. The stock posted strong quarter, gained some 25%, and has lost 10% in the past three weeks.
That is on paper. But, in real life it takes many, many days to get even half the short interest covered.
Well, that was DIFFERENT methodology. I have to admit it I was wrong. But, the stock moved to $55, from $45. Right?
I hope so. There is nice bullish falling wedge/wolfe wave pattern. Could very well see $57-$60 in the coming weeks leading up to May ER, on the back of today's bullish PR.
This is pretty much expected as the stock is recovering from good ol' time beating. Remember, the stock is down 62% in about five moths. This is big confidence-shaking decline. It will take time for the stock recover.
This happens all the time, most recently in TWTR. I don't think anyone who works hard for years to build a company from nothing won't sell some shares to reap his hard work.
Lockup is only hours away. I think the stock will tank to mid $30's. Look no further than TWTR for a repeat.