Thursday, February 26, 2009

Biotech Blood Bath - Amgen, Inc. (Public, NASDAQ:AMGN)

I think the chart speaks for itself. Initially, I thought this was a bearish base with a perfect NRIB in the lower shadow of the outside bar (red on red). Obviously, it grew into much more than that. The h-pattern is awesome. I took a partial at $57.00 $55.00 - price stalls at whole $ number.

When I realized that the entire sector was in a race to the bottom, I ignored the fib. lines and waited for a bona fide reversal pattern. Price never closed above the downsloping 5 period EMA and never printed a red bar after consolidating $57.00 $55.00.

This was the best trade of the day, but I want to follow-up on ABX and FSLR if I have time later tonight.

8 comments:

Trader 504 said...

Nice hold!

Jamie said...

Thanks 504

anarco said...

Beautiful Jamie!!!
I am curious to see how you played ABX because I "almost" made it ;-)
(you'll see at my blog why I say that)
Congrats!

bl said...

Nice on amgn. News for healcare reform sent kicked them all downstairs. I could kick myself for not taking action on that premkt news, esp as have a healthcare WL

Jamie said...

Thanks Anarco,

I think I added to my position at the same spot that you entered long. It looks like ABX is building a base for a bigger move higher.

Jamie said...

Thanks BL,

So much market moving news with Obama in front of the camera on a daily basis.

Dinosaur Trader said...

Nice trade. Gotta love those type of moves. We get a break in the market, we could be seeing more... and then, hopefully a huge bounce that will be even juicier.

-DT

Jamie said...

Thanks DT,

Yeah, feels like we have a ways to go before we hit bottom. Hopefully, by April things will start to bounce.