Here’s you trade on Serepta ($SRPT) (October 28, 2020)
SRPT
I want to look at Sarepta Therapeutics ( NASDAQ: SRPT ); and hopefully, you can see why. If you follow the way I try to trade here, where I see a stock that is in what I call kind of a pinch and pop, no it’s not a pimple. We have had a big sell-off here and then a series of ups and downs.
Typically, if we just kind of look at, generally speaking, we see the range kind of tightening up. But what I really like is the kind of higher lows there and then you can draw kind of a flat top here. Or what I like to do, and I am kind of cheating a little bit I guess, is just kind of draw this like this, because it just appears like we are getting this tightening here.
Here’s the trade that I really like on this biotech company; and by the way, biotech, the ETF, is actually one of the few that actually looks kind of halfway decent right now, so many other things are broken up. But if we look at this, we are buying, we’ll even say above 141.80, so we will say buy if the stock hits 142.00. If the stock hits 142.00 then that is where you are going to be buying it and then you are going to be putting a stop right down here, so you’ve got a pretty tight stop on the trade. And then that way you are able to manage your risk and still participate if the stock starts breaking out here.
This is one of the only trades I’ve got that I could really kind of support; and even this is conditional, the stock has to keep going up you can’t just buy it. There are several stocks that I am looking at that are at good entry levels but only on the price as opposed to the calendar. In other words, only on the Y-axis, where the stock is and the price, but not where it is in time; simply because maybe the pullback was too steep and so we need to build a base. Or maybe it’s got a little bit more to go; it needs a few days, stuff like that. But this is one stock that I would be looking at tomorrow to see if we can get any kind of a breakout, a little push off the base.
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