The Cruel World of Biotech

This week offered a lesson in the pitfalls of the biotech sector and the FDA run-up, as ALXA's slide continued and I ended up with a paltry gain from a trade that was, at one point, a really solid win. Indeed, the only way I could have played this one any worse was if I'd sold at the week's very bottom (so far) of 2.695. As it was, I dumped at 2.70 and after touching 2.70 again today, the stock promptly reversed to just below 3.00.

Yesterday also saw JAZZ drop precipitously from the 10.80 area to an intraday low of 9.61. Not wanting to take any chances so close to the PDUFA date of 10/11, I quickly sold on the first bounce at 10.14. The stock recovered (of course!) and eventually closed in the 10.20s. So, nice profits from a 70% gain on JAZZ but healthy gains passed up on ALXA. Still in AVNR, though that one has stalled and I missed my entry on BIOD today. Keeping that one on watch.

Other stocks on my radar for the rest of the week:


Sold AAU at 3.22 the other day. Looking to get back in before it takes the next leg up.

Looking to add more HDY on the 2.50 break

Been watching and watching this one. May be time to jump in before it breaks that wedge.