In
This Edition....
New Trade
Alerts: GenVec (GNVC), Alnylam Pharmaceuticals (ALNY)
From the
Community
Open Trade
Updates: FormFactor (FORM), WebMD Health (WBMD), Sell Leap Wireless
International (LEAP)
New
Trade Alerts
You
didn't think we were going to let a whole week slip by and not get any
new trading ideas out there, did you? Here they are, with a few hours to
spare if you want to get in before the weekend.
GenVec
Inc. (GNVC) - long/bullish
Though
we talk about low-priced (sub $1.00) stocks constantly at the site, we
rarely recommend them as official trades - they just require a lot of monitoring
and quick decision making that's tough to do with an e-mail newsletter.
GenVec Inc. (GNVC) is a worthy exception though... we think it will behave
consistently enough to move in the same direction for at least a few days
in a row.
We
actually mentioned GenVec a few times through the community articles, with
the most
recent comment coming a few days ago when GNVC finally broke above a major
resistance line. We saw a slight pullback from there, but on weak volume.
Today, it looks like that short-term resistance line is acting as a floor.
We
still view GenVec as a higher-risk play, but one that is worth it. Bear
in mind, however, we can feel that way primarily because we have faith
in our readers' ability to read charts and bail out if it turns the wrong
direction, or to lock in profits if we get a big pop.
Alnylam
Pharmaceuticals, Inc. (ALNY) - short/bearish
Talk
about coulda' shoulda' woulda'....we posed Alnylam Pharmaceuticals, Inc.
(ALNY) as a bearish trading idea back on
Tuesday when the stock was trading at $21.47. Now it's at $20.40, or
5% below where we mentioned it. Ugh. The 5% cushion would have been nice,
but hey - the bulk of any downside potential is still in front of it. Besides,
ALNY hadn't fallen under a major support level at that point.
What
you didn't see then (because we didn't show you then) was how Alnylam Pharmaceuticals
shares were finding big-time support at the 38.2% Fibonacci retracement
level. That floor snapped today though.
From
here, Alnylam has a shot at finding support at the next Fibonacci line
around $18.64. That would be an ok move, but it would be even better if
ALNY didn't find support there and instead tumbled back the $15/$16 area.
First things first though - all we have right now is a short entry.
From
the Community
High
Flyers: LTON, OPTT, XTEX, CAMP
Technical
Forecasts for BMOD, LTON, SSN, and STSA
Charting
Outlook for NEPH, URZ, NVAX, and CPYE
Open
Trade Updates
The
wishy-washy market this week was reflected in most of our open trades....
some up, some down, and most of them not really worth discussing. Three
of them did stand out though, one of them because we need to make an exit
if you haven't already.
FormFactor
Inc. (FORM)
I've
admittedly been on the fence with this short/bearish trade, not sure if
it was going to find a floor at the key support line - around $20.70 -
I mentioned when we first took the trade, or instead going to fall under
it. My bias was for taking profits once it got that low though, locking
in a 17% gain with the move from $25.17 to $20.70.
Well,
I hope you weren't listening too closely ....FormFactor just hit $19.50,
and is still headed lower.
The
plunge not only takes FORM under the lower edge of the support channel
we were following, but also under August's low around $20. Now that any
potential support level has snapped, there's no telling where FormFactor
shares could end up.
One
thing anybody's who's still short should pay attention to is the lack of
selling volume we've seen so far behind this breakdown. I still have my
doubts, but I can't deny the bearish momentum.
Leap
Wireless International Inc. (LEAP)
This
is one you should have obviously gotten out of by now, but if you didn't,
here it is in no uncertain terms.... sell this position before things get
any uglier.
I've
mentioned this before, but it's worth reminding you now the parabolic SAR
(stop and reversal) indicator is the failsafe exit point on most all of
our trades - particularly the ones that don't have much profit cushion.
Leap Wireless International shares flipped their SAR indicator into bearish
mode on the 1st.
Now,
to be fair, I was willing to give LEAP the benefit of the doubt, since
those sharp plunges are often anomalous. And sure enough, the stock managed
to float sideways for a few days after the plunge, staying in the hunt
for a rebound. Once LEAP fell under the low from the 1st though (on the
9th), that was it - time to dump it.
WebMD
Health Corp. (WBMD)
Owning
WBMD over the last few weeks has been a little more adventurous than I
cared to experience (we spent time on the wrong side of a major support
line), but it looks as if the uptrend we latched onto back in June has
finally resumed.
The
nearby chart of WebMD says it pretty clearly... the stock's finally making
higher highs again thanks to this week's move. In the latter part of this
week, the rising support line appears to have started acting as a floor
again. More importantly, WBMD is moving higher on stronger volume.
For
everything we've been through here, we deserve to be up by more than the
16% we are. We're making progress all the same though.
That's
it for now - have a great weekend.