Tuesday, July 25, 2006

Trade of the Day - Cephalon Inc. NASDAQ (CEPH) and Genzyme NASDAQ (GENZ)

As per last night's watch list, CEPH was a buy stop order on a break of yesterday's high. I sold 50% as price hit $66.00 and the NASDAQ was testing 2075 resistance. I thought to sell the entire lot because I didn't think the NASDAQ could go any higher after yesterday's big move, but greed kept me in the trade and a half hour later I was stopped out on the balance of my position. When the breakout point failed to hold as support on the first pullback, I decided to move on. As it turns, out CEPH had two more rallies before fading back in at the end of the session. The daily looks like a failed breakout so I won't continue with CEPH tomorrow.

GENZ is one of my favorites lately and this setup was obvious. This support level which was yesterday's breakout point was almost certain to hold on the second test. I know it doesn't look like much on the 15 minute view, but it was just pennies shy of a pt. GENZ is still bullish on the daily but I expect resistance around $67.28 - 200 MA.

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