ONXX.. the main difference between the biotech and tech sector is EARNINGS.. and POTENTIAL.. biotechs and pharmaceuticals move up on the POTENTIAL for blockbuster drugs, research grants, drugs studies moving into later phases, FDA approvals, etc. The Tech sector is more like a report card of achievements already made. ONXX and some other biotechs fade into and out of glory on any announcement or when there is a funneling of money out of the tech sector into the biotechs/pharmies. They are really the "Avis" of the market.. They are not Number 1 like HERZ so they have to try harder. They try to get out interesting press releases that actually say something new and innovative.
That is why I like the 'belwhethers'.. the ones like MEDX, MEDI, IMPH, IVGN, MYGN, CELG, FRX, VRTX, MNMD,...NOVN, GILD, AZA... they have already achievements so they sit on a "gold" fence (a great fence and you can profit both ways when the techs are strong and when the techs are not)..
ONXX, ARQL, NERX, ARNA, CRGN and that group are ones that get popular in spurts...in most cases they are not near their year highs but can move up on "GREAT EXPECTATIONS" and news. What to do? Hold them 1 or 2 days until the latest press release wears thin. |
