VISN is at a double top almost exactly at the $23 level.
Sometimes the plainest patterns like double tops have a lot of
validity. And frequently I notice that stocks have
capitulation and huge volume at the top just like at the bottom,
everyone piles in chasing it, then volume/buying dries up after
that. And it seems like I've noticed that when a company
beats and it's on a major pullback like BUCY, then it may have some
legs, but when it's already run up, it seems to sell off after an
initial gap up. Look at this chart of VISN, and Fridays gap
up slams into the top of a Bollinger Band of 20, 4, where it's
always fallen from before, both at the beginning of the year, and
in May where the double top is.
I was thinking about buying some put options on VISN today, it
may not go directly to the gap at 18 1/2, but may retrace 1/2 or
more of the big day Fri. back to about 20-21 over the next few days
or week. OSIP is another one I was looking to buy puts on
(another double top at $52 from Dec.), but want to see if the AMGN
beat brings it back up a couple points first. I think the
biotechs are overbought and ready for a pullback soon, maybe after
Novartis-NVS earnings Fri., probably a beat.
Posted by dylan398 on 28th of Jul 2008 at 09:18 am
bob,
u may be correct, I didn't notice that volume was on
earnings...and it does have a 93PE....but becareful some of these
suckers run for awhile before they become excellent shorts
Thanks Dylan. I will wait for confirmation.
That's one of my and possibly a lot of our big drawbacks is jumping
the gun too quick, trying to catch a top or bottom, not being
patient enough.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
VISN
nice charts
Posted by bob52 on 28th of Jul 2008 at 08:42 am
VISN is at a double top almost exactly at the $23 level. Sometimes the plainest patterns like double tops have a lot of validity. And frequently I notice that stocks have capitulation and huge volume at the top just like at the bottom, everyone piles in chasing it, then volume/buying dries up after that. And it seems like I've noticed that when a company beats and it's on a major pullback like BUCY, then it may have some legs, but when it's already run up, it seems to sell off after an initial gap up. Look at this chart of VISN, and Fridays gap up slams into the top of a Bollinger Band of 20, 4, where it's always fallen from before, both at the beginning of the year, and in May where the double top is.
http://stockcharts.com/h-sc/ui?s=VISN&p=D&yr=1&mn=0&dy=0&id=p94928616335
VISN
Posted by bob52 on 28th of Jul 2008 at 09:00 am
I was thinking about buying some put options on VISN today, it may not go directly to the gap at 18 1/2, but may retrace 1/2 or more of the big day Fri. back to about 20-21 over the next few days or week. OSIP is another one I was looking to buy puts on (another double top at $52 from Dec.), but want to see if the AMGN beat brings it back up a couple points first. I think the biotechs are overbought and ready for a pullback soon, maybe after Novartis-NVS earnings Fri., probably a beat.
VISN
Posted by dylan398 on 28th of Jul 2008 at 09:18 am
bob,
u may be correct, I didn't notice that volume was on earnings...and it does have a 93PE....but becareful some of these suckers run for awhile before they become excellent shorts
VISN
Posted by bob52 on 28th of Jul 2008 at 09:26 am
Thanks Dylan. I will wait for confirmation. That's one of my and possibly a lot of our big drawbacks is jumping the gun too quick, trying to catch a top or bottom, not being patient enough.