Gildead (GILD) — is it done going down? This video might help. (April 11, 2014)

Look, biotech has been getting killed; Gilead ( NASDAQ:GILD ) has had a lot of publicity because of the sell-off this has been hit with from the top, all the way to Friday’s intraday low, it lost a quarter of its market cap; that’s a pretty big shellacking. I think you can buy this now, if only for a trade, but look at the big massive volume on Thursday; huge volume, significant break below the 200-day moving average. But on Friday we got almost equal volume, not quite, only 36 million as opposed to 43 million, big, big spiky day, and the stock closed up on the day. There was a big massive move up, by the way to test the 200-day moving average, that didn’t work out too well, and so now the stocks trading about right in the middle of the range, between the high and the low on Friday.

I think you can buy this stock, as long as you realize that it may indeed be for a very quick trade. The low was 63.50, so you put a stop just a little bit below Friday’s intraday low of 63.50; you put it just a little bit below that. What you’re really doing is, you’re kind of catching a falling knife when it looks like it’s just hitting the butcher block, and that’s really where you want to be. So check this out, generally speaking biotech is not something that you want to be in, but just if you’re a trader, as an oversold bounce, this is giving you kind of a lukewarm buy signal. The reason I say it’s lukewarm is, because of this amount of the move on Friday that just didn’t hold up; so you keep your stop down here, go ahead and buy the stock and just get what you get. I think we’re going to get a bounce on Monday, not sure if it’s at 9:30 in the morning or 10:00, or 10:30, but I do think we’re going to get a bounce. If we don’t, you know what, everybody’s going to be in such a world of hurt that you’re going to forget I said this.