The flaw in ISRG‘s business model…
Biotech bears have had an awful few years, by and large, especially in the major players like AMGN BIIB CELG GILD. And with the upside reversal in Amgen this week, you can see the trouble in trying to short those stocks, even when it is appears they are acting indecisively.
So instead of trying to be a hero with the biotechs, a better approach is to focus on a stock on an already damaged stock like Intuitive Surgical, in the medical technology space. We have looked at the longer-term chart here before, and surmised that the stock could easily fall down to $350 before major support might present itself.
Updating the daily chart, below, after its recent post-earnings blow-up we saw a retrace up to the declining 20-day moving average, forming what could easily be termed a bear flag or pennant. All major moving averages are now declining and sitting above price, indicative of an established downtrend now.
I am looking at ISRG as a short idea, especially back below $388 today. A buy-cover stop above $400 makes sense if you play.
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Great front page picture
3D BEAR
fucking awesome. lmao.
Someone with your name has to love it, hah.