RE:RE:Any Revelations TomorrowThe sector trades like this. Look at the historical prices of Merus, Prometic, Biosyent, over the last 6 weeks and all these stocks have followed similar upward burst and 7-10 day drift down patterns.
Personally I think the reason for this is guys shifting capital to chase rallies on similar plays. Look at Merus in relation to TRX, both similar companies, and trading in the same sector. You'd expect them to trade similarily as part of the sector trend for that time period, right? Wrong.
From March 12th to the 26th MSL went through 11 straight days of losses (more or less), from 3 bucks to 2.62 (-13%). In that exact same period, TRX went UP from .67 to .98 (up 32%)
Now look at the last 9 days. (From March 26th) MSL has gone UP from 2.62 to a close today of 3.19 (18% increase) while TRX, again over those exact same 9 days, has gone DOWN from .98 to .83 (-15%). This is on no news for either stock.
In my opinion, what you've got are traders shifting capital from one company to the next as they chase self-fulfilling rallies. I've often noticed that Merus and TRX seem to be heading in different directions on almost every trading day and beginning to think it's not a coincidence. (I might throw PLI into that mix if I get the time/bother to look at the historical prices there). We'll see if the pattern repeats itself once the MSL rally runs out of steam, which should be any day now.
.02