This is a typical short raid. The short position in SNTS increased by 95% between 08/15 and 07/31 from 3.16 million to 6.17 million. Numbers for 08/30 will be out on Wednesday and might actually show an increase to the 6.17 million. Today’s LOD of $21.34 represents a 24% drop from the 52-week high of $28.10 on 08/07. That’s remarkable! In the absence of any negative news SNTS is trading at a significant discount now. Also, volume has increased a lot. It is around 2,000,000 shares daily on average for Aug and Sep, which is 25% higher than the average for 2013. Santarus is a great company with an outstanding pipeline of products showing good profits. Give it some time and the PPS shall be back to its true valuation.
I agree on stop losses being taken out, taking stock lower, once stock broke below Friday's low (and is also right at 100 day moving ave), then stop losses kicked in and by way action after stops taken out, looks like this area will also be the point we would like to see stock hold by end of day. If does, then action still good for upside again.
With no news except good, it's a classic "take out sell stops" to get the price down so the shorts can cover. I give them credit- they are taking full advantage of people who have gotten very nervous about the price action they have been seeing in this stock.
The regular daily swings in this stock from the high to the low of the day are pretty staggering. One can say that it's just a market correction or whatever, but the swings in this stock reveal a lot of day traders and manipulation, I think.