$IHPA Stock. What Happens When the Pumpers Are Done For the Day? Video and Transcription
Using $IHPA as an example, Head Trader at TurboTrading, Robert Knight, demonstrates and discusses patterns that may appear after a stock has been pumped (and dumped). A transcript is below the video.
The patterns that happen when the pumpers* are finished for the day. $IHPA we can see that it had this initially move off of the three 50 area, pop, pull back or do the retracement. And then the last two days, big pop up. So probably, you know, some chat rooms get ahold of it and especially in here, and it really starts to go now, $IHPA.
Let's see if I can find out how much… It did have a pretty big float. Yeah. It's a 51 million share float. So that's, that's a lot, I mean, this thing moved from call it seven and a half to 12. That's four and a half. It's a 200 million you added to the market cap. That’s pretty significant, but anyways, so it probably was attracting the attention of the market.
It's where the money was flowing. And, perhaps, you know, some of the chat rooms had a hold of it and they were pumping it up. It spiked up to this, and maybe it could have been a short squeeze… So there was no real, short on, at going into it, but maybe once it got halted and started to pop, then the shorts came into it.
What I said was, after the second halt, you probably want to get out of the trade because quite often you'll see it rollover and start to back off. And in this case, this is what happened, but not only that. So the people that were…the institutions or the traders or the market makers who were pushing this thing after the second pop, they made a huge win--four and a half dollars or more…if they bought in pre-market.
And so they've all gone home. Well, then what happens is there's nobody left to support it is. And so all the bag holders up here, they keep averaging down and it takes a little pop, the shorts cover. And then it sells off. Shorts covers sells off once the, once the, whoever was running, it has done for the day.
There's no sense in trying to trade these things anymore. They just that's it, especially with the stock or 50 million shares out. Or in the float, I mean, 50 million in the float and no short position to, you know, to support it once, once they go home, they're done for the day, which is usually just the first hour of the day, then there's nobody left to support this.
And it just continues to, it'll just continue to drift off for the rest of the day. Now it near the end of the day, you may get a bit of a squeeze. As long as all the shorts don't want to hold their short over the weekend and may take a pop, but for now, that's it for $IHPA.
*"Pumpers" refers to a "Pump and Dump Scam." It's when a group of investors, or even a single investor, promote a stock that they are holding. This can create a surge in interest, and the price of the stock goes up. The original investors quickly dump (sell) the stock and walk away with their profit. This leaves their followers holding stock that is prone to dropping in value.
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