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Biotech / Medical : Biotech - Technical Analysis -- Ignore unavailable to you. Want to Upgrade?

To: XenaLives who wrote (148)	3/10/2002 12:43:32 PM
From: JEB	Respond to of 544

For there to be a seller, there must in turn be a buyer. The seller wants the most he/she can get for the product and the buyer wants to accumulate the product at the least cost relative to the worth of the company. This tug-o-war makes for interesting patterns. One pattern is the "cup". Notice how the volume is steadily increasing on the yearly chart. There is slow and recent accumulation between the 20 to 25 area. Who is our buyer(s) there? Also, who bought on the "spike" down? Certainly not the brokerages themselves and it wasn't Joe/Josephine-six-pack trader. I'm curious, why is it a bad sign that big boys are taking profit? To me, it signals a "changing of the guard". With this in mind, the "cup" will probably fail since it has broken the 200-day MA on the initial "spike" down. But, keep in mind, the accumulation between 20-25 is very real. Unless you were monitoring level II/III on this stock, you will have to wait to see who were the buyers at that time in the quarterly profile. trade10.com This company just turned profitable and is trading more similar to a biotech rather than a small pharmaceutical. Notice how the BTK broke down at the beginning of this year. Even the big boys take profit early these days for portfolio protection. bigcharts.marketwatch.com It shows the interest of a new pharmaceutical being born. There is no guesswork with this company. Their production facility was approved in the middle of last year. The new Advicor product had hit the market in January. FDA had a lovefest with this product. It lowers the bad LDL while raising the good LDL. It's a first of a kind product and should be very popular. bigcharts.marketwatch.com{DF3A1C14-0010-4706-838A-423300469152}&newsid=796846240&symb=KOSP&sid=40221 I guess what I am trying to imply here is that when you own a large pool of cash reserves, it takes time to do anything and to accumulate here would be to support the stock above 20 gradually until your buy limit is met. Watch for it to re-test 20 or if it never makes it back to that lower support level, then you have verification of an elephant(s). The best of all worlds is to keep track of the houses buying on level III and keep a log. My other implication is not to rely on one tool in your arsenal. Fundamentals are just as important as is market and trading psychology. I know a guy who was an excellent chartist and knew the target points but without an understanding of the rest of trading principles he was limiting his potential and on more than one occasion would jump in or cash out early. A "Nervous Nelly". He lasted a little over a year before moving on.