Don’t feel blue about biotech. Here’s my analysis of Bluebird (BLUE). (February 27, 2017)
BLUE
Bluebird ( NASDAQ:BLUE ). This is a biotech company, immunotherapy. They were a big favorite of mine back here when they were moving up. I don’t like to short biotech stocks, it’s bad for your heart. But now the stock is starting to move higher again. It has moved for a while but It finally got my attention, because it has a reliable enough pattern; or as some would say, a sufficiently reliable pattern to base some trades on it. You get a big move higher. A third of the float is short and probably half of that third is really nervous right now. This stock is starting to move up. Earnings are not an issue. The float is short, like 22 million shares, that is not a very high float. With earnings more 2 months away, I think it is going to keep going.
So I would just suggest adhering to the 3-day rule (this is probably the end of the third day). Smart money buys on the first day, semi-smart on the second, the not so smart on the third day, so you would think this thing is in need of a rest. The only caveat to that is, again, a third of the float is short, the stock is coming out of a little bit of a squeeze. So I would just suggest this: If the stock starts moving $89.00 or so (I will set an alert and I will get a little alert on my software) then this is a bonafide short squeeze and you want to take advantage of that. If it pulls back a little bit, pray that it pulls back to 80.00, that is probably where it is going to hold, that would be a better buying opportunity for you because you would get it about 10 percent less in price.
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