Action in the financial markets is a bit mixed today as gold is down still in a corrective mode and the S&P 500 is up less than two points. However, on the US OTC market shares of Cytodyn Inc. (OTCMKTS: CYDY) are up over 11% so far this morning and attracting a lot of traders. On the US OTC it so far has seen the most number of trades executed in a single stock. Take a look at the technical stock chart.
On this chart the daily stochastics indicator reached an oversold condition by falling back below 20. A lot of computer traders use such signals to try to identify buy points and potential stock bottoms. The stock has had a tremendous run this year and actually got my attention in April when I did a post about it and its Leronlimab drug for potential coronavirus treatments, but it has fallen sharply since early July. According to proactiveinvestors.com the company recently “said it will submit questions regarding its Biologics License Application (BLA) for leronlimab to the US Food and Drug Administration in writing instead of holding a virtual Type A meeting. The FDA has agreed to respond to said questions by September 4.”
Traders on twitter are excited over the stock.
The $CYDY 10-K is a great read. It’s amazing what you learn when companies are forced to be honest to the SEC, instead of lying to retail investors.— Adam Feuerstein (@adamfeuerstein) August 14, 2020
For shorts claiming @cytodyn cannot be uplisted to Nasdaq if SP is <4$: With its 2+ billion valuation and 50+ million shareholder equity it crushes those requirements.$cydy @CytoDyn @leronlimab pic.twitter.com/wATtY509Sn— StarcraftFI (@StarcraftFI) August 15, 2020
I have no position in shares of CYDY. My main interest is in gold, silver, and precious metals. We’re now seeing platinum appear to line up on the charts to follow silver higher and many small cap mining stocks soaring this year. We saw big cap gold mining stock Barrick Gold go up this week on news that Warren Buffett has taken a big position in it. Every morning before the opening bell I send out an email with the top headlines I am following and trading ideas before the opening bell. You can get it for free just click here to subscribe.