Wednesday, February 04, 2009

Biotech Breakout - Amylin Pharmaceuticals, Inc. (Public, NASDAQ:AMLN)

Last night we said that biotechs were poised to breakout and they delivered. AMLN, ALXN, CEPH to name a few. AMLN, ALXN, and CELG had NR daily bases ready to expand. Basically, you look for these to break on the OR and use the previous late day lows as the stop. If the late day lows are breached before the BO occurs, the trade is aborted. These setups are higher risk, but usually the rewards are big.

Don't place your buy stop order exactly on the the previous day high, give it 5-10 cents depending on the price of the stock.

RIO and SID were gapping into the daily spots.

Markets sold off in the afternoon after testing resistance - rounded tops are bearish (look at QQQQ or NQ futures charts) - too much supply - every time bulls try to push prices higher, they are met with more and more supply. Problem is knowing when to short. It seems that the easiest way is to let price break below base and catch it on the retest if it fails to recapture the prior base.

CSCO guided lower after hours and auto supply manufacturers pleading for big bailout, futures trading lower so expect a weak open tomorrow. On the plus side V, AKAM delivered better than expected earnings.


TraderLars said...


I never really really looked at the Cisco logo.


Ok... I've been reading charts for too long.


Jamie said...

Yeah, and I'll bet they paid millions $ for this new logo.