VRX - time to buy ?

[Chris Mac]

6 month chart of NFLX and tell me where the "obvious" short was ?

Why do you want to short Netflix ?
Why do you want to buy ugly stocks and short strong stocks ? I don't get it.
You mean take profits after a nice bull market?
Obvious take profits was right after new historical high @ 133 dollars and below 130, former historical high. I would say 115/120 if you wanted more confirmation.

Maybe there is a reason if PTJ said : "I learned that even though markets look their very best when they are setting new highs, that is often the best time to sell. "
And yes, you better sell new highs when they are weak.
In December '15, USD133 was a weak historical high.
See negative divergence with RSI ? Buying pressure was out of steam.
Classic double top.

By the way, if 80 dollars holds during the coming weeks, NFLX is a strong buy.
So I would not short Netflix. Better short any VRX short term rally.

CM

 

[syswizard]

By the way, if 80 dollars holds during the coming weeks, NFLX is a strong buy.
So I would not short Netflix. Better short any VRX short term rally.

CM

I agree with that 80 level as a buy. However, my point was that stocks that appear to be strong on the charts can be good shorting opportunities.
Look at AAPL for instance. No one was talking short on this one 4 months ago.
CMG is another one. AMZN could be the next one to take a hit.

 

[Jamie J.]

Guys, how do you feel before the earnings?

 

[syswizard]

Valient was up today when the market was down. Bounced off it's all time lows.

 

[onemoreshot]

with only 21 million short its very difficult to create a short squeeze.Squeezes occur when no stock to borrow.

So confident yet so wrong.

 

[ScalperJoe]

Valient was up today when the market was down. Bounced off it's all time lows.

VRX is a stock that many hedge funds own and will watch to see if Ackman joining the board will help them trade out of a jam. Ackman's Pershing Square was reportedly down over one billion dollars on the position.

Check out Ackman's letter to shareholders dated January 2016. Some interesting commentary.

http://assets.pershingsquareholding...re-2015-Annual-Letter-PSH-January-26-2016.pdf

 

[Handle123]

VRX has like Triple bottom, so either buyer on Friday's high breakout or Put options spreads/Call debit spreads. Perhaps climb to $37 or so. All the negative could make for a fast profit.

 

[syswizard]

I'm with you on that strategy Handle. Now if we could get the entire biotech sector to stabilize...that would help in this trade as well.
Everyone hates biotech/pharma....contrast that with 9 months ago, when it was the market "darling" sector....LOL.

 

[Lloyd W. Coutee]

on a breakout move, you should already know the level, but 28.30 rejected countless times that is the target for a move up if it occurs

 

[syswizard]

Indeed. VRX down slightly today on news of their pricing discounts.