PCYG opens at 8.99, precipitously drops to 8.64, then rapidly bounces to 9.53 within 90 minutes ....
One of two things could be happening here:
1) Market Maker Mischief -- clearing out stop-loss orders under the Open, though very little volume shown in those 5 min tics to indicate that is was what happened.
2) Short trader thought he could drive PCYG down, but got slapped upside the head by a Long with enough trading assets to punish and send a strong message (or to take advantage of the Short to accumulate cheap shares).
Big tank yesterday ended about half way through the session ....
..... and has now been moving UP for longer than it had moved down since that "Short" article appeared yesterday.
What our Short Guy didn't want to say is that PCYG owns 50% interest in the software and has been taking stock for greater ownership % IN LIEU of cash -- but he tried to make it sound as if the cash payments were somehow late or in question.
But then -- he TOLD us up front he is SHORT PCYG --- what do we expect from a short ?
1. The guy is short PCYG -- he even said so. Tries to make a case, but he's wrong.
2. PCYG owns 50% of the software and is taking more stock more ownership in the software in lieu of cash. Where does our short guy point that out?
Holders wanting to take gains but wanting to avoid 2013 taxable events -- are selling now.
Trading volume on these last four down days has been about HALF normal trading volume.
From here to any relative low is likely a good entry point and a buying opportunity. From a tech analysis point of view, today just tripped two reliable short-term indicators, now showing downtrend: MACD and Parabolic SAR. Watch for a turn and be a buyer. However, if this downtrend drops below $8, it may seek a new low.