the name does not ring a clerar bell but i certainly remember the chart. it is quite likely that this stock has had an appearance on this thread.
you refer to predictability and volume spikes, can the next spike be predicted?
the answer is spikes follow important events in the life cycle of a stock:
- news. when voc anounced two new contracts woth a few million their price shot up by nearly 90% the first day and followed by further 15% the following day. with this the volume went through the roof. to voc those contracts were major events.
- company results, either above or below expectation in tandem with which run volume spikes of buy or sell trades.
- some industry tend to be cyclical in nature. take the retail industry. the christmas period accounts to as much as half of the yearly sale. so any bad news can spell desaster. you would remember my numerous warnings to colleagues on this thread about gmg. this was the case because i believed that the little bad news that appears just before christmas is manufactured to force out many small investors who run for safety on huge stock price drop. thake this year for example, the major drop in this stocks price saw it dropping by more than 50%. and what was the excuse, an expected drop of sales by about 4.5%. and look what happened since, the price has been rising every day.
- some businesses offer shares to employees. this may cause the volume to swell on each monthly pay day.
