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Chart of Day: How we Traded Zika… and Won.

Feb 04, 2016

Brazil’s president just called the Zika virus a “real threat.”

He upped the fear premium, which in turn sent our Intrexon (XON) stock up another $3 today. We’re already seeing nice gains after buying just the stock around $29 the other morning. And I strongly believe we’ll see even more gains, as the virus headlines catch fire.

If you bought into the XON trade recommendation, continue to hold it… Remember, the Centers for Disease Control and Prevention (CDC) have already seen 11 confirmed cases in the United States.  And experts warn another three to four million more cases could appear in the Americas this year alone. 

Reports in the Journal of the American Medical Association have also noted that the virus has, “explosive pandemic potential.”  Its just part of the reason we recommended a buy on Intrexon (XON) on Sunday afternoon.

 

Chart of Day: Intrexon (XON) Soars…

Feb 01, 2016

The Zika virus is spreading far and fast, posing quite a global health emergency, notes the World Health Organization (WHO). 

It's already been linked to 4,000 cases of microphaly, where babies are born with under-developed brains.  The Centers for Disease Control and Prevention (CDC) have already seen 11 confirmed cases in the United States.  And experts warn another three to four million more cases could appear in the Americas this year alone. 

Reports in the Journal of the American Medical Association have also noted that the virus has, “explosive pandemic potential.”  Its just part of the reason we recommended a buy on Intrexon (XON) on Sunday afternoon.

That gave you time to load up on XON and similar stocks for this morning’s open.

Reportedly, the company bought out a company called Oxitec over the summer, giving it access to numerous programs to meet unmet medical needs including the Zika virus.  The stock has already gained notable attention after recommendation… and could move considerably higher. 

You had an opportunity to buy around $29 this morning. It would run to $31.46 by close. Hold the position. It could run higher on news escalation.

 

Chart of Day: How to Trade the Zika Virus

Jan 31, 2016

When we see health concern outbreaks, we begin to see stock outbreaks…

Just as we did with SARS and Ebola, the Zika virus could make us some good money, as fear intensifies. Once the fear fades, though, we exit the initial trades and buy puts options as the news fade kills the stock run.

We see it happen all the time.

With Zika, the World Health Organization is now greatly concerned, holding an emergency meeting to curb a virus linked to birth defects. Apparently, it’s spreading explosively through the Americas.

The best way to profit from this story is by buying a basket of related stocks. In doing so, we recommend spreading capital evenly among each.

It’s why we’re looking at stocks such as:

Intrexon (XON), which is a buy up to $31.

Intrexon bought Oxitec over the summer, which had numerous programs for unmet medical diseases, including Zika.

Lakeland Industries Inc. (LAKE), which is a buy up to $15.

Inovio Biomedical (INO), which is a buy up to $8.50.

And Cerus Corporation (CERS), which is a buy up to $7.

These could be very exciting trades. Invest safely and equally amongst each.

 

Chart of Day: Facebook (FB) Goes Boom

Jan 28, 2016

Well, that was easy.

On January 22, we noted:

Already up $3.40 on the day, the bounce in shares of Facebook (FB) has only just begun. The stock is still greatly oversold after a 1,800-point drop in the markets. RSI is reversing off its 30-line. MACD is insanely oversold with a read of -2.46. And MFI has just begun to move off its 20-line to the upside.

I’d like to see Facebook retest $100 a share from current levels. One of the best ways to trade a potential mover higher is by buying to open the FB April 2016 100 call up to $5.60.

It moved just as we had hoped… on explosive earnings.

The stock is now up more than $11 on the day, sending our call to $9.55. If you traded this, then congratulations… Sell to close to secure up to 84% gains.

 

Chart of Day: Disney Could Pay off Big… Again.

Jan 27, 2016

On January 6, we recommended selling to close DIS put for gains of up to 279%.

Today we’re being presented with another opportunity to make money… but on the long side. After the release of the Star Wars movie, share of Disney (DIS) expectedly pulled back. Calling the top of Disney was child’s play…

But it’s now become a bit oversold at double bottom support just under $95 as share. All of the momentum indicators are deep in the red, as you can see here. Money Flow hasn’t fallen this much since April 2011. MACD is testing late 2015 lows. RSI dipped under its 20-line, just as it did in late 2015, as well.

That tells us the stock is insanely oversold at this point, long overdue for at least a near-term bounce higher.

Consider buying to open the DIS April 2016 95 call up to $5.20… Let’s see if we can’t make another 279%.  Take a small position.  Don't risk the house.  After the Fed made a mess of the markets, it's a bit crazed out there.

 

 

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