Finally, a doji day.
A doji here could lead to a possible bottom formation. This is exactly the type of bar needed to stop the madness over a soundbite that literally decimated the biotech industry in just three trading days. Next time somebody decided to raise the price of a $13.50 tablet to $750, please notify the newly formed Biotech Price Protection Overseers so they can “correct” the situation immediately (you know that’s a joke, right?)
The outrage over the exponentially price increase of a drug that was easily affordable by some very sick people now becomes unaffordable moved the whole biotech sector into the wrong light. This sparked further political soundbites that inevitably caused a “bank run” on many biotech companies. The panic investors wanted to cash out and paid dearly for it ’cause the shorts were also running the prices down.
However, once the dust settled, my take is that everything will be back to normal ’cause there is always a need in our human race to have a new frontier. All frontiers, past, present, and future, are based on our intrinsic need to improve our current condition. And biotech fits the bill to the teeth ’cause its most elemental goal is to extend life.
And because greed provides the driving force, there are no lack of risk capital ready to throw into the biotech frontier. Thus, those who sold recently due to panic is going to regret the biotech bounce that is coming. And the shorts who haven’t covered yet ’cause they are greedy to see more price drop is going to regret it.
Literally, five of my six positions are all biotech stocks- AMRN, AKAO, ONCY, BIOC, and ARTH. Needless to say, my port lost quite a bit of weight in the last three trading days. But I’m not worried at all. You know why? Because when the medicine works and lives are saved where it couldn’t be saved before, price will go parabolic.
Welcome to the new frontier!
Main port: DMRC, AMRN, AKAO, ONCY, BIOC Trading port: ARTH
My 2 cents.
From my camera:
Categories: Daily trading Journal