What happened with the spec stocks today?

[Superboot]

Hi all,

Looking for some insights as to why the lower speculative end of the market pulled back today (for my portfolio at least). I trade a breakout system and getting many signals (especially for resources) over the last few days. For some reason today, they all went south. I notice this happens with some repetition.

Is this professional investors taking profits after a good run? Are there any indicators that suggest this is about to happen? It seems like everyone has agreed that today they are going to sell their shares. I am trying to determine what I am missing!

Any insights welcome

 

[Wysiwyg]

I notice this happens with some repetition.

More often than not breakout highs get overwhelmed by supply and/or subdued demand while the longer term trend maintains and price consolidates. At the speculative end of the market profits can evaporate as quickly as they appear and losses accumulate in a ruthless fashion. Kill or be killed.

 

[Superboot]

Thanks wysisyg,

I was hoping for some magical answer that I could somehow consider in my trading. When all your shares behave in the same way at the same time, I like try and understand why. Interestingly, the shares most sold off yesterday, bounced backed today.