This one's for you, "Yakster" ... and anyone else interested in learning how volume can tip you off to outstanding results in your trading or investing.
Almost 4 weeks ago, IMMR had an explosive day trading almost 20MM shares and popping from around $7.50 to near $12. Most investors, including our favorite "gap" guy, "Falk", would have said "crap, I missed it and look at that huge gap".
Don't do it! A move of that magnitude is rarely a one day event, especially for an established company. Your best bet is too watch the next couple of days of trading to get the feel for what is going on. The next 4 days showed another 9MM shares traded and pretty much all above the $10.00 level. Then the price stared to drift lower and the volume followed.
As the price fell to the mid $9's, the volume fell to well under 1MM shares daily. And look at the price & volume action for the next 12 days. This is where you can take a position with a high degree of probability that your trade will be a profitable one. The price traded in a very narrow range and the volume was under the norm. All those shares that were purchased were still being held by the buyers. What do you think will happen? They did not buy the shares to watch them waste away! The day will come, soon enough, that either they or new buyers want the stock and will have to pay up to get it.
Today was the day they came back. The stock opened at $10 and climbed all day, closing at $10.48, a 4.6 % gain. And in A.H. trading tonight, the stock is up 14%+. The volume and price is all you need and this happens many times a week in the market. The take from the story is don't run away because you missed a move. If the volume was huge and it didn't drop much afterward, they will come back!