Bakers fault!! That makes me laugh. I would guess that either a position by a fund or covering of a large short position caused the high volume spike today. (maybe both)The buying coincided with the upgrade, that should tell you something. When the buying volume dried up, the stock fell back in line with the rest of the Biotech index. SGEN promises a few surprises at ASCO. It should be interesting.
Agreed. In the short run, small cap stocks like SGEN are subject to manipulation. In the long run, if they can deliver the goods, the stocks can really take off. Most don't deliver.
Over many years, however, I've learned not to ignore the tape, regardless of no news. A strong tape in a weak market is significant.
The shorts have a significant position in SGEN that they would probably like to cover. The current general market downdraft means that there are far greener pastures than SGEN.
Today's spike indicates how difficult it can be for the shorts to get out when too many head for the door together. It also indicates the potential for a real short squeeze, if the fundamental stars line up for SGEN.
Only saw the UBS upgrade later in the day which could explain some of the movement. However the gain on volume and big drop on no volume is still a joke. Obviously the shorts are still in control and keeping this down. But as they say as long as the company, their drugs and patients are doing fine the shorts will one day as the saying goes "be scratching their losers As$". Good luck fellow longs.
And THAT'S why I left the building. The float is huge but very small blocks moves this in a BIG WAY. And Baker Bank is funding this. If you thought for a moment that the Baker's didn't know this was happening, I've got Utah ocean-front property to sell you.
To that point (Bankers -Bakers, used interchangeably) are allowing this movement to happen. End of story.
Please be reminded that SGEN is at the 6 month high. Characterists of a blow-off top are aggressive moves to reach that high-point on Large Volume If both happen today, like it appears they will, then the call I made a week ago is in the begining phase.