Here’s a speculative stock to ponder. Check out Bluebird Biotech (BLUE) (February 09, 2018)

by DAN BLUE 
I want to look at Bluebird ( NASDAQ: BLUE ) today and the reason is because this would be a super speculative trade. The chart looks pretty constructive but it is a biotech stock and it does gyrate around quite a bit, so hence it is speculative. The chart looks okay and you could be trading this just off the chart. But no matter WHY you are trading it you HAVE to pay attention to trendlines. These are these are the trendlines that matter.

The reason I am saying that is because the stock is kind of all over the place. The reason that I look at this is I like to be long some into the weekends because I think they are just buyout candidates. This is by definition, for me anyway, a really speculative name but I thought I would bring it back to your attention. The time to really be buying this stock, I wouldn’t be accumulating a big position in it; they have products coming on line, I think three new ones, but they are also a good acquisition candidate. I have talked about this before; but just because of THAT, that is not a reason to build a big position in this stock.

You can’t think that you have an edge. I used to see these chat rooms way back in the day where you get these fans over in Yahoo Finance Chat Rooms pumping the snot out of these biotech stocks and they had absolutely no idea what they were talking about. Don’t be one of those guys and don’t think I am one of those guys, I’m not. I know a little bit about the company but only enough to be able to sound like a complete idiot if I really try to talk about the ins and outs of immunotherapy stuff. We will just say that this is kind of the “Last of the Mohicans” of the small companies in a growing industry.

The stock fell back to the 50-day moving average, which it doesn’t do very often, and then started trading higher. When it fell here it did kind of start moving on a little bit of volume and then ultimately just kind of trended higher into the close.

My suggestion is, watch how the stock trades. I wouldn’t be buying it above 210.00, that hasn’t worked in the past. If we just draw a line here around 210.00, well what’s that marked? Breakout level? No, that’s marked where the stock moved up to and then fallen back every single time. So if the stock falls back, like it is here, this is where you are buying the stock, not up here. If it breaks out it is probably going to break out on news at which time you wouldn’t really be able to buy it anyway. So start building a little position here if you are interested it. But ONLY at the right price. Only at the right price. Not up here at 220.00; try to get it down in the mid 180.00s or so.

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