News of ARIA buyout this morning is permeating the biotech news. The 12-26-2016 watch list candidate is up (+73.65%) as we look to the opening bell. The obvious lessons learned on ARIA are daily and weekly RSI was rising, SOTEMA was bullish and volume was present. The latter signaled institutions were involved. While ARIA was a lucky candidate, it was nonetheless a proper setup. Congratulations.
XBI is bullish as it pushes above the VBP resistance noted at 62.45. VOlume by price tapers dramatically above these levels.
The JPM Healthcare conference starts today, watch candidates in the biotech and healthcare industry groups this week, in addition to ARIA.
“The biggest annual event for biotech and pharma investors starts Monday with the kickoff of the J.P. Morgan (JPM) Healthcare Conference in San Francisco. More than 350 companies will make pitches to investment bankers, venture capitalists and analysts.” – The Street
Watch List additions include BABA, which should fair well into earnings at the end of the month. This stock is less elevated compared to AMZN. Both report on 01/26/2017.
BABA is breaking a three month downtrend. Considering recent news about weak retail sales and elevated online sales, BABA shows promise “IF” we continue to flag or pullback to the rising 9ema below price. RSI is rising, along with MACD. Volume should follow, as traders look for Amazon’s competitors gain interest in the short term.
Evercore Partners (EVR) is consolidating recent gains. Price is above the 9/20ema. MACD volume and RSI suggest a move to higher prices “could” come short term if XLF pushes this week. EPS 2/01/2017.
GIMO is on our radar, however price needs to get “above” the 9/20ema in order to trigger our “buy” setup. This bullish price action would trigger a SAR buy signal, with RSI in the prime location for a turn higher. MACD is flat, so look for VBP resistance noted at (44.00 ~ 47.00) to hinder price in the short term. With consolidation just above the 200ma, we will watch for volume, which should signal a bullish move is about to occur. The company reports the same day as AMZN and BABA, 01/26/2017.
There is a caveat that this pattern is a head and shoulders pattern, so be aware of this.
VEEV reports on 2/27/2017. Buy point 42.30 or better. Note the candidate triggered a buy signal on Friday. Price is above the 9/20ema as well as VBP support. RSI is rising. Bollinger bands are narrow. If volume follows, this stock could move quick.
Below is the watch list for easy reference.
Note shorts in the Retail sector. If XRT continues to underperform, traders might exit losing positions to put money to work in strong sectors. Watch sector performance early this morning.
Happy Trading – Vinny
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