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Its been good for (NASDAQ: BIOD) for couple of days, until it was Tuesday the 21th of September 2010. Suddenly, the shorts came in and toasted BIOD for now, but the battle isn't over yet, and never will be.

Here how it happened:

The bears attacked as first 30 minutes of trading in $5.90 range with about 750k shares, the next 30 minutes we dipped below the key $5.75 support line on 250K shares...then they beat up on for another 30mins with 250K shares, where it crossed the key support at $5.50 and they took it down with 500K share...then it rebounded with 750shares....all within 90 minutes.......trading mostly flat the rest of the day on modest volume.  If you look at the accum/dist line it is a tight "V" with almost no net accum/dist. Classic attack....shorting followed by quick covering.

So what's next? Are the bulls giving up on BIOD? I don't think so for a very simple reason. PDUFA date is October 30th, 2010. In fact, I believe the movement was healthy (maybe not very much) since after couple huge gains, the stock must retreat, and keep in mind, this is a low floating stock so it jumps up and down quickly.

With that said, I recommend not to panic and enjoy the ride. Those who sold it in their highs todays, congratulations, but those who got it, just wait patiently.

Another thing that is a concern to us is Yahoo boards have many shorters who constantly bring fears into new traders. My recommendation is to filter or better yet, post on our forum because believe me, it doesn't happen here.

Our forum link: http://www.tapebeat.com/forum/viewtopic.php?f=13&t=102

All the best and stay tuned for more.