This week specific microturd stocks have been getting a lot of exuberant action to the upside. $CBIO (Catalyst Biosciences) stock is our supernova highlight of the day. The stock went up nearly +200% yesterday and today went up another +30% in pre-market trading (a total of around +300% in two days). The news that caused the stock to spike was that one of their hemophilia drugs got the OK to proceed with clinical trials in South Korea.
Our take on the news was that it was fluff, a non-event for the nanocap stock -- pure stock manipulation. As to why it went up 200% yesterday? Answer: There are a lot of people who chase garbage stocks all day and just buy regardless of news, fundamentals, and rationality. And more reasons why can be read here on our previously detailed "what are nanocaps" post. The stock has a float of ~600k shares, and yesterday it traded over 20 million shares! With the recent insane multi-day moves of other nanocap runners $HTGM, $DRYS, and $ETRM in the back of my mind, we were very cautious to short $CBIO with any kind of big size. We actually hoped the retards would lift this stock to $22+ / share right at the open, but that didn't happen. In fear of missing out on the drop, we starting shorting Catalyst Biosciences stock with only 500 shares at $17.01 but kept adding to the position the lower it went. The crazy volume that occurred in the stock yesterday was absent today so that partially indicated to us the stock would sell-off today (= the stock manipulators abandoned ship).
Five hours later we covered the turd for a nice easy $5,370 profit! Will $CBIO go even lower throughout the week? Probably. But we wanted to cash in and move on.
All our trades are alerted real-time in the MookTrader stock chatroom, from all entries, adds, to all exits.