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I want to look at a couple stocks today, generic drug
companies. The first one is Mylan ( NASDAQ:MYL ).
This was the strongest drug
company in the Nasdaq 100 today.
As you know health care, drugs,
biotech, those things have all been on fire
and this has been one of the strongest ones here. You look at the weekly chart,
nice drift higher, has not gone parabolic,
but since the last couple weeks
this stock has gone up a bit. There was
an announcement that one of the company's partners, I
forget
the name of the partner, doesn't really matter here;
they had a drug that was approved in
India and that's driving this stock
higher. I don't think that
it's too late to buy this stock; I think you're okay,
but you need to have a longer time horizon. You can't look at this
chart
though and say, "You know what? I'm going to back away from this stock because this is
the absolute high
here. If I buy right now I'm going to be buying the absolute high."
I don't think you are, but you are buying this stock
extended. So if you want to get involved here fine, take a little
bit of stock,
but just know that ultimately the stock pulls back,
ultimately it pulls back away from the upper Bollinger Band.
So be ready to take some stock if you do happen to get a gift
and the stock pulls back to 42.00 maybe even closer to the
of 50-day moving average,
it gapped up here, it went
for a ways before the stock pulled back. So we could see the same type a thing
where Mylan ( NASDAQ:MYL )
moves up a bit into the high forties and then pulls back. So it really just
depends on what your outlook is
for this stock. The only thing that I prohibit is plunging,
and that has nothing to do with your toilet, what I'm talking about is just
jumping in all at the same time
on a stock that's extended. Now,
this is a random stock, it's also a generic drug company,
I don't believe that I've ever covered this stock before and may not
again. I was looking at the group of generic drug companies
and I noticed this one, Supernus Pharmaceuticals ( NASDAQ:SUPN ), its got a fairly high short interest,
they posted a narrower-than-expected loss
back on Wednesday morning, maybe it was Tuesday afternoon. But this
was the first day
that the stock was trading after earnings were released,
it ran up pretty big, a gap down here,
and a trade up in a big way.
So where's the stock right now? Well, there was the
earnings high, there was the earnings low, we stretch this
around and we're up near this high
here. So when I look at the fairly high short interest
and I see this kind of move today, and I see
the other drug companies moving, this is a stock that you may want to
keep in mind. I'm not going to follow it, again it's just kind of a
pattern
really, it's just a pattern stock for me. So you zoom out here
and you can see the stocks been in consolidation for a while.
I would say if the stock starts trading above the upper Bollinger Band,
which is 7.33, that's 12 cents.
If it starts trading up here you want to watch for this because we could start
getting more
of a short squeeze and push the stock up
much further. So I hope this works for you, shoot I hope this works,
and if it works
then I hope it works for you. So I want you to check out this stock
as well as Mylan ( NASDAQ:MYL ) and I think you're going to make some money.