Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Effective Collaboration - Team Research for Better Returns: -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (3563)	7/16/2014 12:36:39 PM
From: The Ox	Respond to of 8278

I did a lot of looking at biotech charts this morning. If one looks at the 45 day charts, stock after stock has been hammered, many down 30% or more. Taken in context of the rise from the previous 2 years, naturally, it doesn't look quite as bad but taken in context of the past 6 years or so and many of the "good candidate" stocks have been cut down to size. What I find curious and inviting, is that many of these "good candidates" are VERY attractive at their current prices. The hardest part to factor into purchasing some of these is that the short positions have been growing and many are massive. The trends have been so strong that they won't be given up easily, if I had to guess. This is where patience and reversal watch tactics need to be strong. I would add in that a bit of risk taken must be part of the scenario. Stepping in front of the falling knife is not wise but there's nothing wrong with small positions being started at substantial discounts to the stock's historic or recent price range. Especially if the trend starts to flatten into more of a base. Looking at the fundamentals is similarly important, as one doesn't want to buy a company that needs to come to the market for more funding during this period. The street is aware of this and that's another reason why the short positions in many of the stocks are very large. A few days ago I wondered how so many biotech stocks were off over 5% for the day. I think it's quite clear that someone got a hold of Ms. Yellen's text in advance or that she inadvertently hinted at what would be said. I don't see this as a conspiracy as many would, I just think it's typical of Street insiders to get advance knowledge of "some of the issues" that will be addressed..... At any rate, there are a number of "small cap biotechs" that have been hammered and are worth considering. Too many to list here. Once again, the stronger companies with a longer history are probably the best ones to take a chance with. As always, letting a stock complete it's trending is the best approach to buying in a downtrend. Similarly, knowing in advance that the company is close to releasing data and risking small amounts of capital can be very rewarding. Good luck out there!! JMO.