anged today as ECRO closed at .11, and traded as low as .095. This is huge drop, -31.25%, probably represents the beginning of a new trend. I would guess that today's close price (around .10 or .11) will become either the new resistance or new support (probably the support) and a new pattern will be determined in the coming weeks. I would stay away from the stock until a pattern emerges, because if you guess and guess wrong, you could stand to loose a TON. I'm guessing that the sell off is due to the dividend being paid out Friday, and today was the first day of trading afterwards. However, the actual reason may be just arbitrary selling by investors, or knowledge of something that happened that I don't have. After the new pattern is set, I think the stock will still be a good one to day trade, because it seems to settle into predictable patterns of established supports and resistance.
Monday, March 24, 2008
ECRO Drops
So I wrote about daytrading a while back, and mentioned ECC Capital Corp (ECRO.) I also mentioned them when I talked about dividends, because they paid such a high one last week. I mentioned how easily it was to trade this stock effectively because of its clear and stable supports and resistance values. However, this all ch
anged today as ECRO closed at .11, and traded as low as .095. This is huge drop, -31.25%, probably represents the beginning of a new trend. I would guess that today's close price (around .10 or .11) will become either the new resistance or new support (probably the support) and a new pattern will be determined in the coming weeks. I would stay away from the stock until a pattern emerges, because if you guess and guess wrong, you could stand to loose a TON. I'm guessing that the sell off is due to the dividend being paid out Friday, and today was the first day of trading afterwards. However, the actual reason may be just arbitrary selling by investors, or knowledge of something that happened that I don't have. After the new pattern is set, I think the stock will still be a good one to day trade, because it seems to settle into predictable patterns of established supports and resistance.
anged today as ECRO closed at .11, and traded as low as .095. This is huge drop, -31.25%, probably represents the beginning of a new trend. I would guess that today's close price (around .10 or .11) will become either the new resistance or new support (probably the support) and a new pattern will be determined in the coming weeks. I would stay away from the stock until a pattern emerges, because if you guess and guess wrong, you could stand to loose a TON. I'm guessing that the sell off is due to the dividend being paid out Friday, and today was the first day of trading afterwards. However, the actual reason may be just arbitrary selling by investors, or knowledge of something that happened that I don't have. After the new pattern is set, I think the stock will still be a good one to day trade, because it seems to settle into predictable patterns of established supports and resistance.
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