They are like gunpowder with their small floats and fascinating blue sky stories. Any news spark, some manipulation and... BAM! MAMA, ONSM, ONT, GOAM, etc all made the breakout before Reg SHO when applicable I believe.
Its very simple. You have all these guys at the prop firms and if I could take a guess, those guys number in the tens of thousands. Then you have all the guys who trade with their own cash at home and they could as well number in the tens or even hundreds of thousands. Then you have all the institutional guys and hedge funds. All these guys are looking for the next big stock that will move. They dont want to wait for Dell or some other big name stock to take months to walk up (or down) the moving average line. They want it right now so they can make the quick dollar. So one of these small float stocks issues any positive news and wham!
I did a little research and have found a way to identify the next small float giant. Its simple, but before I go forward and explain. First, you must know that this is an idea of extreme risk and you should consider this similiar to an options trade where you could lose all of your capital. These small float giants usually revolve around an earnings report. Simply look at which stocks are reporting earnings next and then go from there. This will require some advanced research and knowledge however. I think if you know which ones are reporting earnings for that day and when, then all of a sudden you see the stock blipping up...well you know it might be a good one... Tread on this idea with great caution and do your own homework...
Let me add to that: you need the low float with a high short ratio that is rising to cause the short squeeze.
It was all because of MAMA's news on the release of their new "video search". Which is nothing more than PR. I went and tried their search and it blows!!! It will be back to $1 in 6 to 12 months along with the rest of the junk. Its called small float easy to munipulate. We all seen this with the BS security plays after 9/11 and look where they are now.
some highfliers do run hard, and then show up on SHO. That is true. You seem some get off, then come back on after they run. It looks like they try to control them with fails to keep the core postition from killing them. I simply monitor the SHO everyday. They do show up. KKD looks like something is going on. why would that dog go? The shorts were dead right. Just looks llike they got greedy.