There have been lots of other stocks that I have o
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(Total Views: 697)
Posted On: 07/26/2022 11:32:35 PM
There have been lots of other stocks that I have observed that had trading action like what CYDY experienced today.
They ran up hugely, and then gave an awful lot of it back.
It was trading crew(s) sucking in the momentum daytraders, and in some cases running the stock up big so they could short it near the top.
I knew some momentum daytraders who would see a stock suddenly surging up, and they would jump in and buy. Often, they had no idea of what the company did. They were buying purely for a fast trade, on the basis of the volume and speed of the move up. This additional volume from their trades, of course, contributes to the stock continuing upward.
Then, the stock gets to a point that daytraders sell and take their quick profits, and other traders SHORT the stock. Then it comes down again.
This is not to say that there is not some news that someone knows, or perhaps some article somewhere that has gotten people's attention. But it is dangerous to assume that something like what we saw today means "someone knows something." It may mean just that a trading crew decided that CYDY was ripe for a pump and dump. I have seen it with AVXL and many other small stocks. They went up on the basis of nothing, and they came back down on the same basis.
Does this look like normal trading to you? Be sure to look at the huge difference in volume in the lower pane, between morning and afternoon. What if you were a daytrader and shorted it around .85 and covered at .75?
https://bigcharts.marketwatch.com/advchart/fr...p;state=11
It would be great if this really was some whale coming in and buying a lot, even if it annoyingly was because they had inside information we retail investors don't have. I'll be cheering if there is a fundamental reason for it going up today. But it ain't necessarily so.
They ran up hugely, and then gave an awful lot of it back.
It was trading crew(s) sucking in the momentum daytraders, and in some cases running the stock up big so they could short it near the top.
I knew some momentum daytraders who would see a stock suddenly surging up, and they would jump in and buy. Often, they had no idea of what the company did. They were buying purely for a fast trade, on the basis of the volume and speed of the move up. This additional volume from their trades, of course, contributes to the stock continuing upward.
Then, the stock gets to a point that daytraders sell and take their quick profits, and other traders SHORT the stock. Then it comes down again.
This is not to say that there is not some news that someone knows, or perhaps some article somewhere that has gotten people's attention. But it is dangerous to assume that something like what we saw today means "someone knows something." It may mean just that a trading crew decided that CYDY was ripe for a pump and dump. I have seen it with AVXL and many other small stocks. They went up on the basis of nothing, and they came back down on the same basis.
Does this look like normal trading to you? Be sure to look at the huge difference in volume in the lower pane, between morning and afternoon. What if you were a daytrader and shorted it around .85 and covered at .75?
https://bigcharts.marketwatch.com/advchart/fr...p;state=11
It would be great if this really was some whale coming in and buying a lot, even if it annoyingly was because they had inside information we retail investors don't have. I'll be cheering if there is a fundamental reason for it going up today. But it ain't necessarily so.
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(1)CytoDyn Inc (CYDY) Stock Research Links
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