What happened with $TNXP today?
Let me break down what I believe happened with $TNXP today, something I tried to warn people about ahead of time.
Last week, $TNXP was trading under $0.30, and it started catching attention because it would rise and fall repeatedly. For those paying close attention, there was a lock-up expiration on December 11th. This means insiders who were restricted from selling their shares or exercising warrants could now do so.
From experience, I knew this stock was being set up for a pump. The company released news today about the FDA accepting their application to review a drug for fibromyalgia. A lot of people thought this meant they got FDA approval — they didn’t. The news was hyped, and the stock ran hard, hitting $1.98 at its peak before crashing back down. It’s now sitting around $0.35.
Here’s what happened:
The Pump: The stock shot up quickly, but this wasn’t just retail buying. Shorts covering (buying back their positions) played a big role in the spike. Then, retail investors jumped in late because of hype and fear of missing out (FOMO).
The Dump: Insiders used the pump to exercise warrants (basically buying shares at a lower price) and then likely sold those shares into the market for profit. This created more supply, and the stock dropped fast. It was also likely shorted back down from the top, accelerating the fall.
Unfortunately, many retail investors bought in when the stock was already over $1.00, some even at $1.50 or the top at $1.98. Those who entered today mostly got stuck holding the bag. Retail was essentially used as liquidity for insiders and big players to cash out, leaving smaller investors with the losses.
What you can learn:
1. Understand the News: The FDA accepting an application is NOT the same as FDA approval. It’s just the first step in a long process.
2. Watch for Lock-Up Expirations: These often lead to insider selling, especially if a stock gets pumped around the same time.
3. Don’t Chase Hype: If you’re buying a stock that’s already up hundreds of percent, you’re likely buying at the top. Look for opportunities earlier, like when $TNXP was under $0.30 last week.
4. Recognize Market Moves: When a stock moves up fast, it’s not always retail. Shorts covering and insider activity play a huge role in these pumps.
I spotted this setup early and bought in around $0.30. I sold for a solid profit before the drop. But sadly, many retail traders today became liquidity for the big players to cash out.
Use today as a learning experience. Stay sharp out there, and don’t let hype or FOMO make your decisions for you. Take into consideration what the few are saying instead of the many (talking hype). Or better yet, do DD before you buy a stock and do not chase.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Your trade/risk I don't advise. Set stop loss & manage risk!
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104565969 : thank you guy.
S2ET0 : Thank you for your explanation, which helps me understand the whole process, although it has come at a heavy cost.
L Boogie : S O L I D ! !
104944571 : I have a question,
How can you spot a winning penny stock?
potsy52 : Great comments
potsy52 : Great comments
potsy52 : Great comments/ I’ll just hold til when ever & sell when it goes up
This_Guy OP potsy52 : ah man, I am sorry you got stuck here. Always take profit. Scale out on the way up. Hopefully, you can get out ok
. Never listen to people's hyped up price targets and never try to ride to the moon. You may win a few but will lose overall. Go with volume. Today when it started running over 1.00; shorts were covering and tons of people fomo'ed causing huge volume and a quick sudden run up. That is usually time to sell or at least sell some. When it starts to drop like that and it gets to your entry just get out. Wait for confirmation of reversal and enter again or just live another day to make a good trade with good entry.
This_Guy OP potsy52 : thank you I try to help where I can
This_Guy OP 104944571 : It takes experience and knowing the penny market but I get them from the charts, daily charts. I can see them running up into the top 20-30 and can look at the data to see what's going on. Sometimes I can tell people are getting ready to pump it or maybe solid news is coming and people that know this are buying. It is not exact and I enter ones that don't run but also don't lose much on them if any. I also use the intraday charts, 5 minutes. 15. hour so I see stocks that are rising slowly and steadily. They're always the best to try, especially if the chatroom is quiet. Sometimes Ingonbubsocial sentiment too but ony if I get a good position I never chase.
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