...We Welcome You To The Resverlogix HUB withIn The AGORACOM COMMUNITY!

Free
Message: Taking you up on your offer....

I don't qualify myself as a day trader...but with speculative stocks I will hold them as long as I like the prospects for growth. As an example I bought BLU this past summer but just exitted my postion Friday on the news there after more than doubling....although I might buy back in on a pull back.

With RVX here are my thoughts. After the late June/13 sell off on the Assure trial news, and the subsequent halt....RVX went from the $3 area code all the way down to something like a quarter. I wasn't invested here then (thank god) or even watching. But the trading history is very telling.

Obviously the clinical trial results beat the crap outta the stock...but if you look at the short interest data, it seems to me some people were likely 'in the know' ahead of the news.

On April 30/13 the short interest on RVX was listed as 0, nada...zilch. Then on May 15 it shot up to 780,000 by May 31/13 it hit 1.2 million. Obviously those short sellers did very well.

Its the trading and the related chart after that period which has me speculating about RVX being accumulated....Who knows? Maybe the same parties that profited from going short before the clinical trial fail are now the ones buying.

After the tank to a around 25 cents it of course shot back up to around a buck...A dead cat bounce perhaps on short covering? If that were the case I would have expected to see the price moving down sharply again, but it didn't happen...instead RVX found a base and traded sideways.

Based on the price volume movements since the start of 2014 it looks to my eye that there's a good chance RVX will be back challenging the $1 area. Rught now its testing support at the 200 dma, which has stopped falling...a very bullish indication for the longer term in my opinion.

Stochastics (another of my fav indicators) shows very much oversold right now and it won't take much I don't think for MACD to make a bullish break over the zero line.

Short interest is back down to zero, so it looks to me like the smart $$$ is betting long, and so am I.

Share
New Message
Please login to post a reply