Are you trading this biotech squeeze on Biogen? (September 04, 2012)
BIIB IBB
I’m Dan Fitzpatrick at StockMarketMentor.com on Tuesday, September 4th. This video is not going to be too long; I want to look at a squeeze, this would be a breakout candidate; it’s not a squeeze candidate because it’s already squeezing here. So what we’re looking for is, you know we’re waiting, we’re waiting for the blowout. I think, you know the way I’m looking at this, its trading in an ever narrowing range; all it’s going to take is just a little goose and Biogen ( $ BIIB Biogen Idec Inc ) is going to move out to the upside. Now its a biotech company, let’s see, you can see the biotech and I’ve got a couple more in the Strategy Session, biotech stocks, you can see the index was squeezing, now it’s starting to push out, starting to push out a little bit, so this is the type of top-down approach you really want. When you see a stock like Biogen ( $ BIIB Biogen Idec Inc ) that you think, hey, maybe it’s going to break out, it looks like it might; one of the first questions you have to ask yourself is; What’s the overlying sector doing? What’s the sector that that stock is in? What’s it doing? So the first thing I did when I saw Biogen ( $ BIIB Biogen Idec Inc ), seriously I just went okay, let’s see what that is; Oh, okay, I like that. Anyway here you go, it’s really not anymore complex than that; I really look at this, I see a nice uptrend here. I don’t really get the sense that the biotech index is really EU sensitive, or certainly even jobs market sensitive, and those are the two things that are kind of, you know the market’s dealing with a little bit this week, and perhaps that lack of sensitivity is why we’re getting bids on this thing; couldn’t tell you but I know this, these have been working for quite awhile, I don’t think there’s any reason for them to not work. Okay, that’s it for this video. Members get over to the Strategy Session; I’ll see you there. Free Chart