ARNA continued its dream runup. Excellent example for those early shorts who are getting squeezed right now. Bio-tech stocks move on drug approval and not on market sentiment. Ideal time to short ARNA is when buying momentum fades away. This is when early longs will plan to exit. Don’t be tempted to short it yet.
ITWO is run up on buyback news and Q4 profits. Profit making companies should be avoided for shorting. However ITWO was up 8 of the last 9 trading days. Over done ? Waiting for buying to fade out.
IAG is a gold stock that has literally run up linearly. It has more than doubled in the last 3 months. Without government printing/borrowing dollar like there is no tomorrow, its bound to get weaker. This is good news for gold. When investors lose trust in the dollar, they start loading up on gold. In long term i expect gold to climb to new highs. However in short-term i expect some pullback. I am overnight short on IAG for a pull-back. Stop loss on the break of 8.00$
BR is sitting very close to the 200 dma and would provide a shorting opportunity. Yesterday it did break the 200 dma, but couldn’t hold up its gain and dropped right back. I expect a second attempt made towards the 200 dma. Stop loss on the break of 17.00$ +. Remember to always put stop loss to cover above a major resistance or a major round number.
SEPR is a bio-tech stock that is up 30%+ in the last month. Although the run-up is not too crazy SEPR could provide a healthy pullback providing a short opportunity. 17$ seems to have provided strong resistance and is a worthy short. Personally I don’t like to short bio-tech stocks since they can run up alot, and they normally don’t follow the market movement. Their movement depends on their drug approval. Additionally SEPR broke the 200 dma on the upside. The 200 dma now becomes a major support. Let us keep watching how it plays out.
TNDM is a communication services company that recently reported earnings and gave a better than expected 2009 outlook. This caused the stock to pop up from 16.00$ level all the way to 19.50$ breaking major resistance lines. Now it faces a bigger resistance at 20.00$. Can it hold up ?
VGZ is another gold stock that is gaining on gold price rally. VGZ has broken a major resistance level. I would not short this one. This is only a worthy short if it can’t hold up the rally and breaks below the 200 dma.