Although this morning’s crash didn’t come as expected, ECYT (Endocyte) stock did offer a quick “sell the news” opportunity due to its conference anticipation run.
ECYT (Endocyte) has been a tough stock to short sell lately due to its aggressive pumping – not only by themselves, but by powerhouse Wells Fargo. In addition to P3 initiation, they also received a $20 price target (absurd), which they dumped a $4.20 secondary offering into. It was propped through this, and finally showed weakness on the daily chart Friday. I shorted it Friday afternoon expecting a continuation this morning, but it never came. I was forced to cover for a small gain before the squeeze. The squeeze and run came due to anticipation of a conference call that was released at 2:50pm. I shorted a quick “sell the news” play into this conference and received a little $0.30/share gain for a $400 day. I will not be touching ECYT after today until confirmation of the back-end, as the small cap market is very bullish right now and ECYT is being propped by some heavy-hitters.