Biotech added another percent today but came off the highs towards the end of the day. The move has been exceptional and the volume today was actually bigger than the last two days. This tells me that it wasn’t all buy side volume, as some players were taking some profits.
I added one short and one long today.
FOLD– I added this to the portfolio at 10 bucks today. The stock is flagging bullishly after seeing very good volume over the last month, this usually means higher prices ahead. My first target is 12 which will fill the gap left behind in October of 2105. I’ve rarely met a gap that wasn’t eventually filled, it’s just a matter of time. If the wind blows the right way we could catch lightning in a bottle on this one.
I added FIVE as a new short today. As you know, retail is in heinous shape and although XRT is nearing support, there are some really weak individual names with bad charts. FIVE has broken the 50-day moving averages and 3 other shorter-term moving averages. If that bear flag snaps, it could trade down to its 200 day moving average at 42.50. Below that, there is a gap fill around 39.
