The OTC traders almost always open the stock very low the morning after bad news, trapping the Europeans, momentum players and individuals who feel they have to get out. The traders go long. Then they move the stock up during the day and slowly sell off their long positions (especially since they won't hold stocks over the weekend).
They'll do the same thing Monday-Tuesday, but with less drama, e.g., open it down a dollar at $12, go long the stock of people who only look in the Sunday paper to see how their CEPH is doing and then panic, and then move it back up to $13. So cover your short on/near the opening Monday.
But unless the FDA overrules the committee, I suspect your sale and short won't look that bad in a couple of weeks, as worries mount in advance of the private meetings between CEPH and the FDA. Ultimateley, WeirdPro Randy probably will be right, so don't stay short forever (although he would be better off if he left a 15% probablilty for the disaster case).
I'm off this thread, goodbye, good luck, buy as much Insite Vision (INSV) as you can afford. :-) |
