Aside from the provincial bounce in crude stocks today, there’s nothing else working except Biotech. Truthfully, that was a lie — there are other sectors worth perusing, namely SAAS, but it wouldn’t make for a strong headline. But it is true, biotechs are leading the fray, in spite of an overall weak market.
So do you chase into the melee and hope to make it out okay?
However, bear in mind there are insidious forces pushing these stocks higher. Typically only a few dozen trade with any reasonable volume; but now the whole sector is liquid. By the book, you should sell now if you’ve been holding onto them. If you’re buying now, understand that you are a bag holder and might end up in a vapor-lock trap, where only pikes could escape. When this sector stops rallying, the volume would have dried up and you will be CANG-banged with merciless sentimentalities.
I sold ALNY for a +5.2% gain. My best loss was taking PDD out yesterday for a 5% loss. Seeing it down 22% today makes my heart warm and reminds me to never trade into earning, lest I am privy to insider info.If you enjoy the content at iBankCoin, please follow us on Twitter