Style,
I want to develop here a thought proposed by Glenn Rudolph. There was very low volume today in ASND, but a lot of 10,000+ blocks, much as has occured for the last two weeks.
Given the low volume, it seems that no one really wants to sell at this price. However, there are people out there who need a tax loss (I wish I were one). Lots of smallish trades in ASND suggest that that is the case. This tax-selling action seems to be balanced by institutional block purchases, although these purchases have pushed the stock up slightly of late, even in the face of retail tax-selling.
If this is so, it is worth remembering that there are only 5 trading days left in November. After that, no more individual tax selling. At that juncture, and if the block purchases continue, then the stock price should be pushed up more rapidly. To the extent that this precipitates short covering, then there will be even greater upwards pressure.
In sum, there is the potential for quite a rally in this stock in December, one that could gather momentum when/if it becomes evident that 4Q earnings will be strong. In any event, we will know on the 6th trading day, from now, whether it was tax-selling that might have restrained the stock for the time being.
Gary Korn |
