No approval, but ITMN coming back

ITMN's drug was rejected by the FDA yesterday and its stock plunged from the 40s to 10.

Shrewd traders like Stockguy22 found the bounce and profited expertly. Some people thought margin calls would bring ITMN down all the way to 5 or so this morning. Instead, shares dipped below 10 briefly, than began a surge that is still in effect. ITMN now at 10.85 and rising.

Short squeeze? This is, in an odd way, the inverse of the BIDU pop. BIDU went from 620 to 710 in the blink of an eye, and after a few days, simply couldn't fight the market climate and sank below 680.

ITMN was pummeled, but ran out of sellers, apparently. Normally, rejected drugs don't get another shot at FDA approval for years. Whatever the case is with ITMN, fresh longs are banking coin this morning.