CAR T stocks are the buzz right now. Even grocery store workers are talking about the FDA approval of the first CAR-T therapy from Novartis last week. Labiotech wrote about the Novartis CAR T approval here.
As swing traders we can’t chase any of these stocks. Back in July I wrote about going long both Cellectis and Novartis.
Back in February 2017 I linked to this YouTube video on how the National Cancer Institute cured leukemia that you may want to review to gain a fuller understanding of what this disruptive technology is about.
Had you bought Cellectis when I wrote about it back in July, you would be up more than 15% right now.
These stocks just can’t be chased higher right now.
My goal is that GuerillaStockTrading become the smartest stock trading website on the internet for amateur traders. Being smart means NEVER chasing a stock higher.
Most of you that watch the weekly Saturday show on YouTube already know that I made a New Year’s resolution to NEVER chase a stock higher in 2017. After making that resolution, my trading profits have improved by over 1000%.
You have to ask yourself, are you a predator or prey for some other predator? You want to be a predator. If you stalk and wait for a pullback to pounce, you’re a predator. If you chase a stock higher, you’re prey. Make sure to review this stock trading lesson on swing trading and the difference between being a predator or being prey.
CAR T Stocks
Be a smart trader. Instead of chasing, create a CAR T watch list and add these stocks to it:
The next CART-T FDA approval will likely come from Gilead, which just announced the €10Bn acquisition of Kite Pharma that is currently waiting for an FDA decision on its CAR-T candidate KTE-C19.
GILD does not present an entry opportunity at the moment. Prices have been extended to the upside lately. For a good entry it is better to wait for a consolidation.
Even though the FDA has approved Novartis’ CAR-T therapy Kymriah, officially blessing a new way to attack cancer, the stock has gone pretty much no where. That’s a cautionary yellow flag to traders who think that just because the FDA has approved a CAR-T therapy treatment that this translates into making money in CAR T stocks. Notice how the large players volume continues to downtrend and the Twiggs Money Flow is negative suggesting the stock is still under distribution. I think Novartis is a better setup for a long entry than Gilead. Prices have been consolidating lately and there is a support zone below the current price at $83.76, a stop order could be placed below this zone.
Cellectis is a death-trap stock. This is like the stock you tell your father-in-law to check out because it looks so good (wink, wink). Cellectis stock does NOT present a decent entry opportunity at the moment. Prices have been extended to the upside lately. For a good entry it is better to wait for a consolidation.
JUNO is a little better than CLLS but not by much. JUNO does not present a good swing long entry opportunity at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for more of a consolidation first.
Large players have been selling CYAD into the upward move. We see reduced volatility while prices have been consolidating in the most recent period. There is a very little resistance above the current price. I don’t really like trading ADRs when I can find a similar opportunity in a non-ADR stock. The Twiggs Money Flow is weak and the falling large players volume means the stock is not a good setup right now unless both improve. I did this stock trading lesson on large players volume that you should review.
Make sure to leave your comments on CART T stocks and this exciting new medical technology below.