Good Biotech Action- 3 New Setups Tonight

The SPX lost about nine points today, tested the 20 day moving average but then bounced to close above it.  Essentially the markets in general bottomed about 10:30 then managed a slow move off the lows.

Three was some very good action in biotech today even though the IBB itself was only +0.65%,  Stocks like CLDX, ICPT, PCYC and NLNK had stellar moves. After the close it was disclosed that JNJ is in late stage talks to buy PCYC. The later jumped $20 in aftermarket trading.

Some of out own biotechs had good days: ZIOP +4.1%, JUNO +4.6% and KITE +3.1%.

I added BMY as a new addition this morning during trading hours and it immediately ran almost $4. Ill take lucky over smart any day.  They received good news from the FDA right after the recommendation.

I’m getting a bunch of mixed technical signals here and the market is a bit wishy washy right although there are still good setups out there. My strong recommendation when the market gets like this is to trade smaller and use tighter stops until the market finds its footing and gets a firm direction again.

With that said here are some setups that I like and will add to the P&L if they trigger.

LGF is coming out of a base and is consolidating. I like it on a move through 33.30

lgf

SIGM real pretty setup here, buy through he 7.60 level.

sigm

BLCM is a biotech that may be getting ready to make some noise. It is at some lateral resistance, but above 25.60 with volume it can get going.

blcm

Hope you had a good day out there. See you in the morning.

 

 

 

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