Professional traders typically monitor a plethora of information relating to individual securities and more macro indices. In addition to data based information such as option, volume and volatility scans, traders and active investors watch and listen for notable press releases and the actions of larger investors in particular stocks. We monitored a rather interesting and often times overlooked phenomenon for the last week and a half.
After the close on Thursday August 6, AQXP, Aquinox Pharmaceuticals, had a press release discussing positive results from secondary endpoints from Phase 2 LEADERSHIP Trial in BPS/IC and earnings release of $-0.44 EPS for Q2. The initial after market reaction was rather muted including price action and volume.
The action in AQXP began the next morning. The opening rotation indicated a price of $2.45. The trading day showed positive momentum both in price and volume. From the initial trade of the morning, volume increased several fold. The upward trend continued throughout the day. AQXP closed at $10.54 on August 7.
The positive momentum continued on Monday August 10 for another reason. Information began to circulate around numerous trading desks that the now much followed Baker Bros. have been purchasing shares in AQXP. Volume spiked in the opening rotation of trading. Opening the day at $17.56, the high of the day was $55.49. Though volume dissipated somewhat, the impact of the press release and news of the large investor influence was made in both trading activity and price action.
We continue to monitor press release information, earnings, and large investor sentiment as it relates to specific securities.
