Zynerba Pharmaceuticals (ZYNE)

[Leonard McKinley]

The price behavior is, indeed, rather crazy. My latest theory about this is that this stock is a favorite target of short selling traders because the stock is heavily owned retail. The logic is, of course, that retail holders are more easily scared out of the stock so a bear raid has greater opportunity for success.
The short interest reported as of two weeks ago was higher than ever, and the stock has even declined since then. This suggests that the shorts have not covered but are continuing to sell. In addition, the anecdotal reports of sentiment are also abnormally negative. Finally, I think that we are in the beginning of tax loss selling, and there are certainly considerable taxable holders in loss positions.
It would seem that this cannot go on much longer, but it is still 7 weeks to the end of the year. Also, the greed of fear & greed is also extremely high, suggesting that a notable correction is coming...not good.
If you are able, I recommend continuing to average down. Next year will be outstanding, I believe.