It seems like a trend that every morning Pacific Ethanol is rising sharply, then falling, often times to level off for the rest of the trading day. Here are some of my thoughts on what may be causing this. Our expert writer will also weigh in on this one likely later.
Now that the institutional investors are in this stock, the fund manager's job is to get a decent return. So often times on an early price spike, they'll sell and take their profits. They're happy to take a 1 or 2% gain first thing in the AM. This often pushes the price lower and they can hop right back in on the dip, and likely do.
Then they repeat this the next day.
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