So... Insider Trading....
I'm just thinking to myself and asking the webisphere - how can I better identify insider trading? I'm going over charts and specifically SPRY from this week because I had been tracking it but not trading it and now that I'm going over what happened in the week it looks A L O T like someone knew before hand that they were going to get a letter from the FDA asking for more studies (a surprise letter). only the letter came out late the 19th like very late in the after hours or even after after hours (im not going to check real quick). But on the 19th the stock spiked premarket (low volume, easily manipulated, easy to raise the price if needed to start selling throughout the day when there will be more volume) and then proceeded to sell off ALL day steadily. In fact, a very similar setup seemed to be taking place on the 1st but the 19th is just very much in proximity to the news that caused an even more dramatic drop (That's right even more dramatic than the TWENTY SEVEN % drop it took from pre-market to close) dropping another ONE HUNDRED and EIGHTY EIGHT %!!! BUT, interestingly the stock didn't drop any more really after the first drop - almost like whoever might need to be out was already out. Rather than seem like people were desperate to get out it held strong after the initial drop. Day 2 after the news the stock rebounded quite nicely. Almost like someone wanted back in.... But that's besides the point. Really, If you've seen the market and paid attention to price movement it would be apparent that there must be those who know what information will be dispersed later, like they had some kind of insider knowledge. What I'm thinking is, how can I/we identify these kinds of moves? I think hindsight would be our friend here? So like, I don't even need to be involved with the initial news, but being able to look back and see that "hey, someone was getting out (or in?) before the news" and then seeing that "hey this isn't selling off in reaction to the news - it's holding pretty strong" and then using the levels given to us for a decent trade on day 2/3. Are there ways that anyone identifies money getting put into a stock? Because, from what I've heard, most of the time big money tries to be pretty discrete about when they are getting in or out long/short and they are usually during times of consolidation (often over long periods of time) but are there any tells that people use out there that a stock is about to GO or Drop? I feel like there are. I've noticed this kind of pattern where after a long consolidation a stock pops for a day or two and then makes new lows and then really takes of shortly after (next day). I've never really tracked it or tried trading it, but just noticed it from time to time as I bust through charts (often a rather slow process. It's quick, quick, quick, and then SLOW after I notice something and want to delve deeper into it). Alright, Ok, think that's all for now. Cheers!
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