Don’t Believe The Hype
Learning to read market news combined with price action will greatly enhance
your chances of finding winners. News does not blindly take a stock one way. It
may gap down on negative news, for example, but then reverse.
09:42:05
Genetech (DNA)
is rallying higher after opening 20% down from yesterday’s close after the
company announced that a phase III study of Avastin in relapsed metastatic
breast cancer patients did not meet its primary efficacy endpoint of
progression-free survival. DNA is now rallying off of the worst levels of the
day, trading at 28.75 down 3.25. The Biotech sector ($BTK.X)
is trading lower so far at 334.58 down 6.64.
09:44:54
Biotechs ($BTK.X)
are weak this morning in the wake of negative news and commentary pre-open.
The Biotech Holders ETF (BBH)
is plunging in the early trading session, gapping down 2 points, and other
issues in the sector should be on the radar for reversal plays in the event they
do not show continuation to the downside. Chiron (CHIR)
could be a possible reversal play, as the stock appears to be getting support at
a 38.2% retracement on the daily chart, and is looking at forming an opening
reversal to the upside on the intraday chart. CHIR is down 0.78 to 37.07, while
the BBH is down 2.31 to 80.19 and performing similar action to CHIR on an
intraday basis.
Biotech stocks came out of the gate negative, then many staged reversals.
Many times, if they are not going down in the wake of negative news, they are
going higher.
DNA gives a couple of good opportunities out of pullbacks even
for those who are cautious, giving good entry points. Get in the habit of
hearing the news, then interpreting the price action. Don’t believe the hype
from the TV anchors, and you will soon be taking profits while the rest of the
crowd is scratching their heads.
Until tomorrow,