Dow traded over 2100 today. And all of the indices were very strong. It is a raging bull market there is no doubt. But I have been writing about it for the past year that we are in a new secular bull market and the trend is up for the next 3 to 4 years. The biotech ETF (LABU) has finally caught up with the rest of the hot sectors with all of the strong biotechs lately. It is in an area of resistance. But the trend looks strong so I expect biotechs to keep running.
CALA: A stock I have written about and traded in the past had a major break out today. It broke out of its consolidation base in the $9s and through resistance at $11.00 It closed right at the top of its range at $11.60. I would look to go long over $11.60 with $14.00 as my price target.
CRBP: The chart for this stock is setting up very nicely. It has been consolidating just below resistance at $9.20ish. A break through $9.30 and I will look to go long with price targets of $11.00 and $13.00. Shorts 6.7 days to cover.
DVAX: Nice winner for me today managing to buy the first pull back and catch a $.70 move. It has broken out of a 4 month base and started filling the gap from last November. It traded as high as $7.45 closing down at $6.90 on 20 million shares. If the momentum continues I would to go long over today's high with the gap fill at $9.00 as my target. Shorts 11.9 days to cover. This should add a lot of momentum to the trade.
MYOS: Former running spike into the close today trading as high as $3.12 (after hours $3.27). It will find resistance at $3.40 and $3.60 with a price target of $4.60.
NDRM: Higher priced stock but trading at post IPO and all time high on an explosive break out of its up trending channel. I would look to go long over $29.75 with mid $30s as the price target to start with.
WTW: Big winner from my watch list last night where I had an entry level of $16 and the stock traded as high as $19.86 closing at $18.35. There is a large short position (shorts nearly 15 days to cover) so a lot of momentum with this stock. I would look to go long over today's high with my price target still at $24.00.
It only represents a guide to follow. You take the reported short interest and divide that by the 100 day average volume. The resulting number is the number of days it would take if only shorts were covering and they all covered. A number less than 5 probably doesn't have much effect. 5 - 10 and a good catalyst and it probably adds momentum to the trade. Over 10 and a catalyst, let the fireworks begin,,,
Good morning, Bob. CRBP just announced an offering at 7 dollars a share. Do you think that will have any downward pressure on this stock? Thanks very much!
Thanks Bob, I'm still learning and your explanations are awesome!
Nick - Generally it does.
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