Today $BE found its way onto my market scan for a significant change in VoEx of 216%. I think there is reason to believe that this drastic change in VoEx and the short interesting on $BE is indicating significant upside in the near-future.
Let's look at VoEx:
[Quick summary: VoEx measures the price-directing forces on a stock and can indicate when these forces become too heavily involved in a stock's price-action. Graphically, VoEx-daily (magenta) indicates the day-to-day changes in VoEx and VoEx-trend (tan) indicates the over-all trend. VoEx indicates the greatest level of stability when it resides within the horizontal lines, shown below. When VoEx is above the line it is said that the stock has overly-inhibitory forces, and when it is negative, it is said to be overly-propagated. Let's have a look:]
Here we see the drastic upshot in price today was met with an even more drastic increase in VoEx. This voex-spike indicates that there is extreme instabilty with the current price movement. There are several reasons why this instability may be present, but on $BE I believe, as we will see below, it is because of the overly large short interest on the stock.
First, let's look at the predictive price-action associated with large movements in VoEx:
Above is the association with the change in VoEx (x-axis), and the change in price (y-axis) segmented by the number of days since a large VoEx movement, and grouped by if VoEx was positive or negative prior to the spike. The trends noted here are statistically significant for their positivity with an alpha of 32 (68%; 1 STD).
$BE previously had a negative VoEx, and had a value of +216 for its spike amount. This puts it along the blue line on the right side of each day-graph.
We see that throughout the next 5-days, when a stock experiences such a change, it is met with price appreciation.
In looking towards the reason behind the large spike in VoEx, the most obvious answer is the 16 million short interest on a stock with an average volume around 3 million.
Additionally, my SNAP algorithm which looks at underlying changes in a stock indicate positive returns over the next 1- and 5-days:
The SNAP graph above shows the cross-hairs for both days (left is 5-day, right is 1-day) in the positive y-axis and situated well within the 95% confidence interval of the trend.
So in short, I think $BE represents a good opportunity for some upwards price action on the short-term.