- startup companies > Remember startup companies have no business except selling stock,
before the product is in production and producing marketing revenues. And to reach that level of business, it needs cash to grow the business. So there real business is raising cash and their secondary business is what ever they are trying to do. Once management and a "Promoter" work on an agreement,
the stock price
falls to the level that the Promoter wants to Buy it at. Since insiders know when the "Promote" is coming, they will buy their own stock at the bottom price level.
These are the volume surges without price change. Because know one is following the stock, but them, they can buy without causing price change. Holders are happy to get out. Ask buying is easy when retail is bored and holding a stalled uninteresting stock for a long time. Each darkside play has it's own turn over numbers and timing planned.
Some plays involve more cash, some longer times, some at lower price levels. But you can get the idea of the game taking place. Some need a PR to help the stock to go parabolic. But all continue until all big guy shares are sold to retail. This stock had a prolonged downtrend in November and December,
and finally found its "Key-support" at 0.0003 in January,
the start of the New QTR.
It then had an "Attention-Pop", then a "Drop", formed a base, then began its "Run",
to complete its "cycle". After a New prolonged downtrend, below the previous 0.0003 "Key-support",
the stock is now starting to trade sideways once again,
finding a new "Key-support" at 0.0001, and forming a base,
getting ready to have another "Attention-Pop",
to start the new "cycle".