This is your chance to trade Alexion, right? (October 25, 2012)
ALXN
I’m Dan Fitzpatrick at StockMarketMentor.com on Thursday, October 25th. I want to take a quick look at Alexion ( $ALXN Alexion Pharmaceuticals, Inc ). This is a stock that, if you remember, you know, we’ve been on this for quite awhile and so was Jim Cramer. Alexion ( $ALXN Alexion Pharmaceuticals, Inc ) was his stock of the year back in late December; he said you needed be long Alexion ( $ALXN Alexion Pharmaceuticals, Inc ) and that worked out well. Now I’ve been featuring this again in our Strategy Sessions and I just want to kind of complete the loop here. This lower high was your indication to sell. Now if you’re a member and you’re still long this stock shame on you, that’s all I can tell you, and that’s the cold, hard truth. You should not have been long this stock for about 15 points maybe 20 points, but here’s the deal; so you’re saying, “Okay, well I want to trade Alexion ( $ALXN Alexion Pharmaceuticals, Inc ) now,” fine. We see the bounce, what this has really done is it’s established yesterday, that’s the 24th, Wednesday, yesterday’s low of $93.33 as the low. If you want to take this stock for a trade to the long side, frankly, I think you’re going to be fighting an uphill battle because there’s a lot of pain, lot of pain from folks who were buying this stock on the way down. Anytime the stock falls this steeply and then bounces this weakly you really don’t have a whole lot of upside here, we’ll probably see a bit more upside but the bloom is come off this rose, there’s no other way to say it; so I think the better way to trade Alexion ( $ALXN Alexion Pharmaceuticals, Inc ), frankly, is to fade it. In other words wait for the stock, wait for it to come up a bit more and then if it were to get up to $100.00 and then falter, bam, that’s when you fire off a short. If it goes through $100.00, say up to the 50-day moving average or roughly approximating that anywhere around here, then you wait for the first down day, the first reversal day that looks kind of like this one, where the stock opens up high, higher than it closes and it’s a red box, that’s when you want to short the stock because, let’s face it, this has been a heck of a move this year. Well the year ain’t over but the move is, okay. Okay members get over to the Strategy Session, we got some stocks to cover over there; lots earnings. Free Chart