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GeoVax Labs, Inc. Message Board

  • arbitrage_hunter arbitrage_hunter Jun 19, 2009 3:01 AM Flag

    How this works...

    When there is news that finally breaks us out, we'll see strong volume pounding the ask to get everyone excited and stock may double to .60 or higher (depending on whether or not their is any gap open). Then late in the morning we'll see a profit taking sell-off that will be dramatic trying to entice long-term holders to vacate their position. Then after lunch it will bounce hard and fast and break through its morning high and continue to break out all the way into the close (minus a sell off for people scared to hold over night bc they dont know anything and are just trading it). Then day 2 will start with a bang and a gap open even higher, from there it could do a number of things. The main key is to not get suckered out in the morning of the breakout. Here is an example I have seen...

    Stock closes at .29 huge news released
    premarket the next day. Gaps open to .60, runs up to .85 sell of begins sending it all the way back down near the .60 open (all of this in the first 30 min of trading). Then it rebounds to around .67 where it seems to find a nice range until lunch when it suddenly ran sharply up to 1.95 (between 12 and 2 it tripled) and gave some back closing at 1.50. The following day it opened at 1.90 and ran all the way to 2.70 before closing at the 1.95 (the previous day's high). This is by no means exactly what would happen, but they weren't exactly curing AIDs to generate that run.

    Fundamentals break down during a real run. You may say its a $1 or a $2 or $3 stock or a .09 stock but when something takes off like this could the sky is the limit in terms of the trading high. You just have to remember what your DD and added knowledge on the stock tells you is a fair price because it will ultimately settle back down there but let it run. Traders will run with it and try to leave each other holding bags. For example if you think the news warrants a $3 stock price, it could run to 5 or 6 or 9.

    If you notice it really breaking up and you know you dont have the stomach for violent swings then I suggest sitting out day 1 and revisiting the issue on day 2 or 3.

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    • Arby, you sure are making alot of assumptions. This company can be diluted at anytime during the runs your implying. Are you sure that the entities that have funded govx cannot convert and sell their shares? What about Emory. They can't sell their 300,000,000 shares? Don't misunderstand me, I'm a govx play for over a year now with a 150% gain on trades. This stock may be 6 months to 2 years for significant news on positive clinical data to be released. JMO GLTA

0.086+0.002(+2.38%)Feb 9 3:56 PMEST