I like it very much so I decide to copy the title over. Doesn't matter if you agree with him or not, doesn't matter your market view, it is another difficult time we have to face.
Market is confused. We frequently see 20 points either way. The market is expecting to see something in the Fed minutes. I know people starting to speculate on tapering. I think it may go down again and 1670 cannot hold. BUT I don't think it will crash either. I dare not jump off the train completely. That's why I closed my high beta stocks and hedged my low beta stocks.
It is stock picker's market again. It's time to forget the overall market and focus on alpha. Taleb says bio stocks are anti-fragile. I picked the following 2 for short term momentum trade. Hopefully they can provide some alpha in a fragile market.
MNKD
It is very volatile. I read it as another triangle breakout. First target is 8.05. I will sell Aug call if it can be there next week.
Hourly chart suggests a stop at 7.20.
GTXI
This is a different chart. It is a hard-beaten stock.
I am not interested in fundamental analysis. Here is an article defending it. What attracts me is the Harami pattern formed on Friday. MACD also suggests oversold condition.
Hourly chart gives a better view. I think it should rebound to 5.20 area, consolidate a little bit then go up to 5.80s. The plan is the same. Sell calls when it gets close to 5.20. This one is higher risk, so the call premium is pretty fat. At Friday close price, stock closed at 4.72, August 5 call bid-ask at 1.05-1.15. The math looks like this:
(5.00+1.05)/4.72-1=28% or
1.05 / 4.72 = 22%
Both stocks will have Earning Release on 8/5. Consider dodge the risk.
Disclosure: I am long both MNKD and GTXI since Friday.
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