Cassava Sciences is an extremely risky stock with a high short interest float where the number of short sellers on this stock weighs more than the buyers. Hence it’s a prime candidate for a short squeeze effect should the stock release any good news. BBBY run was simply amazing as the stock had like almost 400% ROI in 1 week but it has already ran up a lot so it’s time to search for another one and I discovered Cassava Sciences while doing my daily homework.
The stock shot up very big time yesterday with high volume on great news as insiders were buying the stock which attracted the public to buy on this good news. Price was running up wild like crazy and many were chasing on rising prices and it seemed to never stop. In just a short time span of an hour, the stock rampant up from $24 to $34 where it seemed like there wasn’t any signs of stopping this rampage bull. Retails were chasing while once again I saw some secret selling occurred as prices were jerking higher. At the very last bar in the 5 minute chart, it was a super long green bar and I knew it’s time to unload every and run. Soon after, the stock just collapsed profusely and never recovered. The classic pump and dump which was recorded in my SOMM Manual happened over and over again in many of the risky penny stocks which I think if you know how to spot, buy and then sell, the profits can be astounding within minutes. Although the stock released good news, but because of the high short interest float in this counter, at certain point, I do expect a bounce like what we witnessed yesterday. 🙂
Ronnard – Market Psychologist – A Stock Market Opportunist