Tell a little Fib

ITMN ... what a spectacle to watch. I feel for anyone who's held a biotech stock through the FDA process, then got hammered. I was there when DNDN was rejected and the stock fell from 7 to 4 some years back.

But watching the shares of ITMN today is on par with any great comeback in sports. It ran from sub-10 to 11.14, then bounced nicely off its Fibonacci retracement levels (10.61, 10.44), actually touching the 50% retrace (10.44). Now trading at 10.70. How long that holds, who knows? How many shorts can hold out? How many of the shares are being controlled by day traders? It's compelling action. I hope ITMN gets back to 40 some day, regardless.

NBG is another story. It never returned to Fib levels after hitting an intraday high, bouncing off 2.90 before racing up over the 3.00 mark. Now at 3.03. I did not chase this thing. Holy crap. After being down huge early, NBG is now up 7%.

BIDU is at 689, or 11 bucks higher than it was when I got shook out. Tiny position, but my feelings are hurt anyway. Waah.

And as I type, NBG is now 3.10. Great Aphrodite!!

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.