Short Term Trading Week Starting : 15 Oct, page-73

Well seem biotech as a sector has been running hard lately  (even this week)  perhaps triggered by recent BIT phase 2 success.  Biotech stocks I have at the top of my whats hot list are:-  

ANP BIT ACL SUD BD1 MEB ACR PAA IMU PTX

So a sector wide land rush based on the phase 2  trials of 1 stock and apart from being the same sector their appears to be no other reason for each stocks run. Fickle sector biotech waiting for phased results and more often than not failure. So BIT's P2 success is a rarity and unlikely to be followed up with any other spectacular results in the short term.  I see the majority of this group of  stocks falling hard after the realization that their is no fundamental reason for other Biotech stocks other than BIT to rise any time soon. Reckon we get an big Biotech ann like that about once or twice a year. 

By all means trade the naivety of crowd but don't be left standing when the music stops.  For the sector wide upswing to remain intact another biotech will need to announce something truly spectacular and v.soon otherwise a decline will be ensue.  Call me a skeptic but I just can't see it happening any time soon. 

By all means though trade the trade if it is there.... but tight stops are the order of the day given the recent market wide volatility. 

PS: It seem in just about every Biotech mini  rush occurs when they bigger trading community can't find something better to invest in and lately there has been nothing that great given market wide declines.