Originally Posted by glitters
ETRM is a dog. May be a trader's darling with the wild swings. Not like you to call a dog "awesome."
So, ETRM had at one point run up to 0.71 today... Well over 40% from yesterday.
The point I am making that, may not be clear here, is that it doesn't matter if a stock is the best thing since sliced bread, or a turd.
What matters, as a trader, is that the sentiment is overly negative or overly positive FOR THAT STOCK.
yes, I am not arguing that ETRM is 'awesome' in the same way as AAPL is 'awesome'.
What I was arguing (and apparently was proven correct) was that, yes, ETRM was a TURD, but people had overly crushed the stock down below where it should have been, and hence it was overdue for a runup. So it was relatively 'awesome' meaning that it was overdue for a rally. Which happened.
But now that it happened, I will scratch it off the list of 'awesome' or should I say, 'relatively awesome' stocks.
For example, for SQNM everyone thinks that there will be fraud. Well, of course, that is why the stock is 4 and not 24. Heck, the stock got as low as 2.50 something.... and when it was 3, I had felt that it was 'relatively awesome' meaning that it was overdue for a huge runup. And guess what, that happened, to the tune of 30-40%.
My whole biotech philosophy is to find these types of situations, where the fear or disgust or panic takes the stock to levels that they should not be at. In order to do that, I have to judge the sentiment, and predict when I think the sentiment is going to change. You can buy stocks that are absolute turds (ETRM) and make money on them, you just have to be able to estimate when you think that sentiment will change, even the whisper of a good rumor can make them run up massively.