Thursday, November 5, 2009
IVOT jumps on big news, sustains the rally through the day, Nov 4, 2009
IVOT jumped on the news of a distribution agreement with Whirlpool (WHR) for its green product. The magnitude of the event against the backdrop of the last months' lack of action in the stock can be easily gauged from the longer range charts above. What makes the stock different from the likes of UNCO and PLMO (abortive Supernovae) is, besides the sheer size of volume on the day of the jump, its ability to sustain the rally throughout the day. Indeed, the 5 min chart looks different from the pattern of big jump -- big pull-back -- mid-way consolidation, often seen in such cases, in that buying seems to be distributed throughout the day more evenly. It's hard to extrapolate conclusions from the higher frequency time scales to longer range, but if the stock opens with an upward gap today, things may become interesting. Definitely worth watching.