TTOO had quite the rally yesterday…

It went from $0.28 in the pre-market to highs of $0.47 towards market close…..that’s a run of about 68%!

Interestingly enough, the stock has shown a repeating pattern of bullish sentiment over the past month and a half…

The question naturally becomes…

What is causing TTOO to run?

While there are no obvious fundamental catalysts to speak of for the August rallies, we can clearly see an uptick in short interest over the past few months.

This is a likely indication that TTOO was labeled as a hype stock by the retail community.

We have seen this happen to many stocks over the past few years, with the most famous examples being AMC and GME…

Folks buy a massive amount of shares in the hope that they will be able to “squeeze” out the short sellers.

While the squeezes themselves rarely materialize, it does lead to lots of volatility in the short term!

On the other hand…

The most recent rally seems to be more fundamental in nature.

It came right after the company received FDA clearance for its biothreat panel.

Keep in mind that they have been waiting for this for a few months now…

It’s difficult to say whether there is more bullish sentiment to come in the coming days.

Biotech catalysts tend to be pretty short-lived, so it will depend largely on whether the price action be able to maintain its current momentum.

That’s all for now…

Until Next Time,

-Damian