Friday is a profit taking day....pop in the morning and down all day. Shorts will 'hold' to try and recover losses. Several pops on the way down may occur as people decide to cover their positions and break even. Also, at these levels most institutions will start to sell their positions and take huge profits. As long as the shorts don't cover on Friday...RIGL will drop. No one would purchase shares at this level because of success in a phase II trial for a drug which will not be on the market for the next 3 years. Today was a combination of a short squeeze (no thanks to Lehman Brothers) and a bear trap no thanks to short covering.
Final reasons for a drop..institutional selling, very high valuation..stock price, results of a phase II trial (not phase III or FDA approval), no shares left to short, Friday is a profit taking day....etc
Reasons to go up...momentum, and short covering...
GOOD LUCK TO EVERYONE!!!!
Just wanted to emphasize what chop said about the institutional investors.... nice little gain for these guys, so it would only be logical for them to sell at these higher levels to beef up their funds performance for the year (I'm sure many funds have taken large hits over the last few months; this is a nice year end gift for them). I wouldn't be concernced about this profit taking if the float was only 30% institutional owned, but 99% makes me think there will be some big profit taking.
But who knows where we over the next few sessions. Either way its a fun ride...don't you love this game? Each morning is like preparing to go to war...so buckle up your seat belts and giver shite.(Don't forget to stretch!)
Best of luck to all (shorts and longs)!
will test 30 bucks pre mkt...a lot of people who shorted will be covering pre mkt...some people will be afraid it will be another chnr...chnr was down a bit the day after it closed at 27.74 to under 26, then it took off like a rocket to over 48 later in the morning. this won't go to 48 tomorrow, but with it closing near the high of the day in the regular session and near the high of the day in the after hours session...this will continue at least a few points
read this new for ONXX which released in Feb AND THEN SAY
they didnt conduct phase 2 and jump from 15 to 55
Shares of Onyx Pharmaceuticals (nasdaq: ONXX - news - people ) are also rising. Onyx said net revenue from its kidney cancer drug Nexavar topped $165 million last year in the U.S. Onyx developed the drug with Bayer (nyse: BAY - news - people
as much as i say this, I know the stock would POP tomorrow again