Why have 3 stocks' post-surge prices hardly changed in days?
Is it purely once-in-a-gazillion years coincidence that for as long as 4+ days the post-surge prices for three stocks from the same biopharmaceutical sector have hardly moved up or down? Specifically:
1. Intra-Cellular Therapies (ITCI): just over one day since suging from approx. $80, it very quickly landed in a minuscle $126.90 to $128 post-surge price bandwidth (between +58.6% and only +61.2%).
2. Sage Therapeutics (SAGE): similarly, just over one day since surging from approx. $5.50 to very quickly land in a minuscle $7.40 (+34.5%) to $7.70 (+40%) post-surge bandwidth. And in fact, more recently the bandwidth appears to be getting even narrower than (7.40-7.70).
3. Inari Medical Inc (INARI): for almost five days now, after surging from approx. $53 to approx. $65 and quckly landing in... you guessed it... a very narrow $79.30 (+49.6%) to $79.60 (+50.2%) price bandwidth that has continued unbroken now for almost five days.
OK, the above is likely an incoherent, garbled mess. However, a picture speaks a thousand words, so hopefully the above will make much more sense with reference to the screenshots copied below. These illustrate, respectively, these three stocks' respective one or two hourly tading histories over the past few days, which clearly show their implausibly 'flat lining' post-surge prices.
Or, not coincidence? Because surely the likelihood of the following is orders of magnitude less likely than, say, being hit by lightning... twice... on the same day:
That three stocks...
1. ... from the same biopharma industry...
2. ... in the same broader 'pharma' sector...
3. ... ALL surge at least 30% within a few days of one another (or same day)...
4. ... along with the expected huge increase in buy and sell trading volumes typical of such huge surges, ie the sort of trading activity that logic would imply more than 'normal' price volatility...
5. ... to then, incredibly, all establish almost perfectly flat post-surge prices...
6. ... that have hardly moved up or down for between one and almost five days, ie trading in implausibly narrow price ranges?
I'm still a novice sharemarket investor so can't determine whether this is simply an extraordinarily spooky coincidence, or the result of delibarate trading activity ('market making', yes?) to maintain almost unchanging stock prices. The only place I could think to look are the basic ARCA and Blue Ocean order books, but I guess without subjecting that data to (much!) more sophisticated statistical analysis, they aren't revealling any obvious tradinng patterns... to me at least?!
Can anybody shed any light on this weird coincidence? Or not coincidence?
Intra-Cellular Therapies (ITCI): for almost 2 days price has stuck solid to an approx.$126.90 to $129 bandwidth
Inari Medical, Inc (INARI): for almost 5 days price has stuck solid to an approx.$79.30 to $79.60 bandwidth
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- Myron Bright·01-15Could the surge be that these pharmaceutical companies were short-squeezed?[Doubt] They seem like the kind of targets short-sellers would favor. But i’m also confused, waiting for answersLikeReport