Diogenes, my deep condolences for TIE. I knew it gave me vertigo, and this is why.
Down from an all-time high $78 to a limping 62.31 in after-hours trading. OUCH!!! It sizzles! I didn't want to touch it with 10 ft stick.
You had a very peculiar condition going on in TIE in that it remained overbought for too long. It's almost as if the Profit takers never showed up, waiting for a better shot. Now everybody's rushing out at the same time - and I kind of think thestreet.com's article on profit taking had something to do with it. Sure, TIE had been downgraded a few weeks back, but notice this because it's a bit too much coincidence:
thestreet.com published an article on profit taking at 11:30 this friday.
At the same time, after rushing from aroun 75 to an all time high of roughly 78, profit takers rushed in, and volume nearly trippled by the end of the day - and it all happened at just about 11-12 that friday!
I'd be playing with thestreet.com voodoo dolls, but I still gotta say it WAS overbought for too long, and the stock was TOO extended and in dire need of a healthy correction. Except there is nothing healthy about THIS correction after everybody broke the doors on the way out.
I see nothing going other than profit taking. No headlines, other than the downgrade. Titanium is still going very strong as far as I know, and I'm a bit perked up to whether this is a great buying opportunity right here, just like Apple was a great buying opportunity after crashing on earnings reports, and just like Sandisk deeply corrected after Intel announced plans to compete in Sandisk's arena - both these companies proved emotional profit takers wrong a few days later.
It's interesting to note that the article published DID note there is no reason to dump TIE right here. But it did very strongly encourage profit-taking, and I think all the profit takers that didn't show up over the past month showed up at the same time this week and raked in a few more emotional sellers trying to spare their profit.
Apple is still doing GREAT - and I still wish I'd held onto it - but I have the same vertigo here. It's a growth stock that is very extended, and very very vulnerable to negative speculation and negative reports - as last earnings report showed, even though results WERE pretty good.
That's probably why I kinda veer more towards middle of the road between Value and Growth stocks. I like them a bit undervalued with good earnings growth. I like them to be a 'buyers' choice' but I don't want them to be in the media every day - and nothing freaks me out more than having the hottest stock on wall street. When profit takers come, they don't just come - they gush and fuck you on the way out!
I AM being proven right on my Toyota Motors Calls though, and that is making me very happy! I new buyers had to rush in as profit takers put it up for sale. I just wish I'd been more patient and waited for the stock to come down from being overbought before I got my hands on it.
Also sold UNH on overbought conditions, and was proved right! Bought it righ back today though, even though I think it has more way down before going up. I'm not a daytrader, but I just can't resist skipping a small correction in the stock, and this marks the 4th time I've timed these small peaks right before small, healthy corrections take place! Some stocks - particularly UNH - have very clear stochastic patterns, and once the stochastics reach an overbought condition, it corrects until it becomes very oversold and buyers rush in on the opportunity. These corrections usually cost a few dollars on the way down, which is no biggie, I just like to time them! Another one I bet on is NBR, which is giving very clear oversold conditions and is due for a healthy correction right here.
TIE is showing very oversold conditions right here, along with absolutely NO headlines to justify it, NO change in the Titanium industry, NO bad company news like CFOs and CEOs leaving...zip, nada...and the stock crashes 15-20% in 2 days? As oversold as it is and as strong as the company and industry is, I don't think I'll be able to resist getting my paws on it right here. Good luck though!