Amgen (AMGN) is doing what we hoped it would do. Here’s your next move. (April 21, 2015)
I want to go back to Amgen ( NASDAQ:AMGN ). I mentioned this yesterday in the “Chart of the Day” noting that this stock, first of all it’s a large cap biotech and those guys tend to be doing pretty well. No matter what biotech ETF you’re trading you’re doing just fine.
With Amgen ( NASDAQ:AMGN ) this thing has been putting in a high base for so long that my suggestion was, okay, the sectors working, there’s no real monetary or fiscal policy issues with these biotech companies, they’re basically almost a low risk trade it seems like with everything that’s happening.
So with Amgen ( NASDAQ:AMGN ) my suggestion was that you look at the overall trend, see that the stock has been trading sideways for a while, take a small position before the company announces earnings, and then if the stock falls because folks are disappointed in the earnings then average down, there’s your position.
On the other hand if the stock moves higher, hey, at least you got some, then go ahead and get the rest. I think you’re probably going to want to get the rest; the stock traded up after hours. Lets look at the intraday chart, you can see the big move here, it’s not huge but it’s a move, it’s up a couple percent, two, three percent but it’s not pulling back.
So I would say if you’re an investor just hold the stock because it’s going higher, if you are an investor hold the stock. If you’re a trader you probably want to be selling in to this a little bit or at least watching it very carefully, because a lot of times these stocks that push right up against resistance on a gap, in this kind of market, there are just few that tend to gap and run.
Think about this, this is totally not in the same sector obviously, but look at JP Morgan ( NYSE:JPM ); that company announced great earnings, stock gaps up right in to resistance, runs up for another day, and now it’s down almost to where it was prior to the earnings report. So this could work that way for Amgen ( NASDAQ:AMGN ).
But what you want to know is this, the report was good, earnings were great, which means that Amgen ( NASDAQ:AMGN ) is going to continue to get bids, which means that Amgen ( NASDAQ:AMGN ) is going to continue to be in the winner’s circle up here in the upper right, and that’s where we like to be. As long as this stock is staying up here you want to continue to own this stock and I think that puts Amgen ( NASDAQ:AMGN ) right in the sweet spot.
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