Do you like buying when there’s blood in the streets? Here’s what we’re working on next week. (April 05, 2019)
BIIB CVS WBA GME LIVN
A couple of weeks ago Biogen ( NASDAQ: BIIB ) took a big, big dump. They had, I think it was a cancer drug, it might have been Alzheimer’s. I forget, sometimes I think I might have Alzheimer’s; took it out of rotation, didn’t work. The stock just absolutely got crushed. If you bought it on the first day, and I did, I bought it on the first day and I got shaken out for a small loss, you lost money. And then on the second day, it was even worse.
What I did was, I put this thing aside, set a price alert and then on this day, on the 3rd day it starts to move up and that is when you get into this stock. We did a similar trade on CVS ( NYSE: CVS ) when it fell down here. A little kind of a climax sell-off and then a rebound.
You could look at Walgreens ( NASDAQ: WBA ), the same type of thing. And, frankly here, we’re still waiting on that. What I would suggest doing on Walgreens ( NASDAQ: WBA ) is set an alert; 55.22 was the high today, that would be an entry. If you are looking to buy this stock buy it above 55.22.
GameStop ( NYSE: GME ); guess what? We did that as well. This was a live trading session here on Wednesday and people made a lot of money waiting for the stock to move back above $9.00. That was a really good trade. We have had a lot of rave reviews, I guess you could say, about this method of buying these gaps down. And I am going to teach you how to do it. I am going to teach a tutorial dedicated to that on Wednesday; called Trade Tactics for Pouncing on Panic Selling. Lots of Ts and Ps in there.
It wouldn’t be a Chart of the Day if I didn’t give you a trade potential. So here’s one to think about: LivaNova ( NASDAQ: LIVN ). A big, massive move down, 28 percent in a day, it’s not going to zero, that’s for sure. Don’t be surprised if the stock doesn’t gap down on Monday, that kind of happens a lot.
What I would suggest doing is keep your eye on the close, which is 69.69. If the stock starts trading above that level you can go ahead and buy this stock with confidence. The low of the day here was 68.30; you can keep your stop just a little bit below 68.30. And when I say below 68.30 I mean like a little bit below, like 68.25, 68.20.
You can be buying this stock only if it trades above Friday’s close. If it trades above 69.69 you are buying the stock and you are keeping a tight stop below the intraday low here. Don’t ask for too much of it, all you are looking for is a few percent. If you get more, great, it is always a nice surprise when you get more than you were asking for. But if you are asking for more than the stock is going to give you it’s not a nice surprise, typically it’s a losing trade.
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