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Sunday, April 17, 2022 12:36:54 PM
Mondays appear to be the best day of the week for day flipping.
Veru, Inc. (VERU), a micro bio pharma, is an excellent example. The company issued a news release Monday morning, April 11. The pricing advanced throughout the morning after the opening bell and eventually peaked in the afternoon until profit taking hit.
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What I have noticed is micro bio pharma that release news after the 4pm close aren't good bets the following day. I don't bother participating in the Gaucho Market with the idea of holding for the following day. What I have noticed these tickers tank two seconds after the Webull trading platform opens at 4am. What it tells me is traders who are able to borrow shares in the four hours after 4pm then submit ridiculously low buy to cover bids from the get-go. What I have also noticed is these after the close micro pharma stocks tend to decline even more for the next several days to the next several weeks. What I think happens is the companies, which produce no revenues, stay in operation by making loan deals with toxic lenders who sell discounted shares issued to them until the terms of the loan are satisfied. Dilution, in so many words.
In this particular instance, VERU did advance in price after a brief decline for two days. This is somewhat unusual, but not unheard of for a micro bio pharma.
What I think is taking place has to do with the day flippers finding opportunities are currently running a little low. So, they will focus on what has already run up and return to it. This is hot money being run by the impatient who aren't interested in waiting days, weeks, months for the right opportunity.
This is trading, pure and simple. Zero sum game.
Veru, Inc. (VERU), a micro bio pharma, is an excellent example. The company issued a news release Monday morning, April 11. The pricing advanced throughout the morning after the opening bell and eventually peaked in the afternoon until profit taking hit.
.gif)
What I have noticed is micro bio pharma that release news after the 4pm close aren't good bets the following day. I don't bother participating in the Gaucho Market with the idea of holding for the following day. What I have noticed these tickers tank two seconds after the Webull trading platform opens at 4am. What it tells me is traders who are able to borrow shares in the four hours after 4pm then submit ridiculously low buy to cover bids from the get-go. What I have also noticed is these after the close micro pharma stocks tend to decline even more for the next several days to the next several weeks. What I think happens is the companies, which produce no revenues, stay in operation by making loan deals with toxic lenders who sell discounted shares issued to them until the terms of the loan are satisfied. Dilution, in so many words.
In this particular instance, VERU did advance in price after a brief decline for two days. This is somewhat unusual, but not unheard of for a micro bio pharma.
What I think is taking place has to do with the day flippers finding opportunities are currently running a little low. So, they will focus on what has already run up and return to it. This is hot money being run by the impatient who aren't interested in waiting days, weeks, months for the right opportunity.
This is trading, pure and simple. Zero sum game.
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