Sunday, May 12, 2013

Have You Checked Your Bios Lately?

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Let's Talk About Those BIOS!!

When one looks at the current trend off the November lows a few things stand out -- namely the pullbacks in terms of the duration, the depth and the percentages they've pulled back.
Take a look at the daily charts below of the NASDAQ Comp and the SPX.They pretty much tell the story within the current trend.

So you see? Overall within the current trend any sell off ought to be a welcome sign for using to get long on.
When we look through let's say the names in our newsletter this weekend and  look at the February through March pullback in the indexes we noticed the bios for the most part took the lead higher opposite the markets while other names quietly consolidated and yes even some names bit the dust really hard.  The thought that comes to mind overall with regards to individual issues is?  
"It's A Market Of Stocks" with something for everyone long and short alike.  Which is also another way of saying money stays in the markets but rotates around.  Think out of these and into those.
That said, those names that have run the most could easily lag at the least or go into a correction in the next pullback with some other yet to be defined theme moving higher to pick up the slack.  After all look at DDD and SSYS in the February through March pullback.  Those two names were all the rage and then? POW to the downside.  While at the same time the bios did the opposite -- they took off and asserted a form of leadership. 
Our game plan is to see how the market opens next week after the opening dust settles and take things one step at a time. We do like the recent action in the bios last week, what we didn't like is the amount of point moves most made in the blink of an eye on Friday. A day or two of backtesting or pulling back would be fine by us for potential going long purposes. 
Take AMGN for example.

From a trade what you see perspective? We see an issue that is in a clearly defined uptrend pulling back off highs above the 50 day average plain and simple. THAT is the main reason we issued a Trade Trigger email alert to our paying subscribers last week -- both a stock trade and an options trade.  So far so good on both!

And...we've added 3 other bio stocks to the watch list for our paying subscribers -- we just need to see them continue to pull back to a low risk buy point like AMGN did and then we'll likely issue trade alerts on them as well.  

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