ORMP

     A very similar trade to my GENE trade, ORMP had the same pattern as it shot up from 4 to 7.9 in two days on very weak news. Unfortunately, when I saw i tried to place an order but for some reason the order never went through after three tries. Since I never made the trade I will just talk about the potential play and why i was looking to short it at the time I was. When i saw the stock shoot up of very little news and the company had very poor fundamentals (negative EPS, Debt, negative margins, negative cash flow), i knew this run would not last forever. One the third day once it started gapping lower i knew that a huge red day was likely and this is when i tried to short at the open of this day. I never got executed but the stock opened 7.60-ish and immediately sold off down to the 6.40's. This would have been a perfect short, as it is similar to a pump and dump like GENE in which i was actually able to get a trade off.

     As you can this large unsustainable move that the stock made in two days, when previously the stock was doing absolutely nothing. Once the large gap down occurred it showed that there were a lot of profit takers and no more buyers showing a topping signal. After the first initial large drop the stock had a bit of a bounce as shorts sellers take profits. But this second bounce can also be shorted as i believe the stock to continue downwards all the way back $4.50.