Yes, you should watch volume, I think. Institutions/ hedge funds move markets (we don’t) although an individual investor that either buys or sells a few hundred thousand shares of stock in a small company like AVXL could move the share price for a day or so if that individual decided to purchase/sell all of those shares over a short period of time. Those of us here have our limits. So, try to follow the volume. It (large volume - unusually large volume % increases over time) may be a clue in the puzzle of attempting to decipher what is going with accumulation or distribution by larger players with access to information that eventually significantly moves share price. The % of volume increases may be a clue to whether clinical trials of a biotech are succeeding or failing. Of course, once this news is known is when you see the large moves either way, but larger than usual % of volume increases may demonstrate accumulation/distribution before the news is “known” by us lesser mortals.
However, it may turn out that we all get the big news at the same time. That is the way it is supposed to work, but quite often some get the word before others. Anavex is a small company with few employees, which you might say cuts down on the possibility of news leaking out. However, we are conducting three clinical trials at once with the same drug, and think about how many people total have access to information that could be “leaked” about how the trials are proceeding. Therefore, to those of us not in the know, larger than usual volume increases along with analyzing the price action may provide a clue that the larger players have some knowledge of what is going on and are making larger buys or sells accordingly.
