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2 Biotech Stocks and 1 ETF to Watch 5/25 – Matt Thomas

May 24, 2017 By Matt Thomas 2 Comments


5/25 Watch List:

Both stocks from my 5/15 Watch List are still in play. I currently have open positions in both ROX and LQMT.

ROX (Castle Brands Inc.): Between 5/15 and 5/17, I added 375 more shares around $1.70. I sold 320 of those shares today in order to capture some profits as it broke $1.90. I now own 1500 shares at an average cost of $1.67. This stock has been on a perfect uptrend and just made a 52-week high today at $1.93. I’d really like to see this hold above the previous high of $1.87 and explode above $2.00.

LQMT (Liquidmetal Technologies Inc.): Still floating around between $.25 and $.30. I’m looking to add to my position near the bottom end of that range. Same thesis from 5/15 still applies. This stock has a consistent history of spiking on news and rumors around the launch of every new iPhone model. Might be a bit early here, but I like the support around $.25. I still own 682 shares at $.27.

2 New Stocks to Watch, Plus 1 ETF:

CYTX (Cytori Therapeutics, Inc.)

Thesis: This is a biotech stock that appears to be basing between $.90-1.00, which is my current buy zone. With phase 3 data due out in the early third quarter (most likely in July) for Scleroderma, I’m anticipating a run-up into the $1.20 range between now and then. The stock has a nice gap to close from April between roughly $1.15 and $1.35. Keep in mind, I’m never looking to hold shares through the event itself – just playing the potential run-up.

Price at Close 5/24: $1.04
Buy Zone: $.90-1.00
Disclosure: No Position at This Time

CYTX Watch List

ITEK (Inotek Pharmaceuticals Corporation)

Thesis: This is another biotech stock that appears to be basing in the $1.60-1.75 range, which is my current buy zone. With phase 2 data due out in mid-2017 for Glaucoma, I expect a run-up to occur between now and then. This is another chart with quite a large gap to recover between roughly $2.20 and $6.00 if it can break out of the range it’s been trading in since January.

Price at Close 5/24: $1.80
Buy Zone: $1.60-1.75
Disclosure: No Position at This Time

ITEK Watch List

TZA (Direxion Daily Small Cap Bear 3X Shares)

Thesis: This is what’s known as an Inverse (and Leveraged) ETF, which allows traders to essentially short the market. In this case, TZA is a 3X leveraged ETF against small caps. In other words, by holding shares of TZA, you profit from a drop in the small cap index. With so much political uncertainty lately (ex. President Trump’s budget proposal, firing of FBI Director James Comey, and the Russia scandal), the market may see a pull-back in the near term. I’m watching the IWM for a failed break of major resistance around the $140 level for a potential entry in TZA.

Price at Close 5/24: $17.78
Buy Zone: Watching IWM to confirm resistance at the $140 level
Disclosure: No Position at This Time

IWM Watch List

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. PLEASE REFER TO DISCLAIMER.

Filed Under: Matt Thomas Watch List

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Comments

  1. Jstancik8 says

    June 1, 2017 at 10:22 pm

    Matt – Do you actually communicate your own positions? It appears so, and that is a good thing! I like your about me page, explains your trading philosophy. At first, it took me a moment to determine if you were using technical analysis, fundamentals or both. I see you are using technicals and that is cool. I will probably bookmark your site and follow your progress. You hooked me!

    Reply
    • Matt Thomas says

      June 2, 2017 at 1:18 am

      Yes, I have been sharing my open positions in my recent Watch Lists. The trades I personally like to pursue are short-term in nature (roughly 1-4 week hold times are the goal), so technical analysis is a major focus. But I do also take some fundamentals into account like cash/share, institutional ownership, insider transactions, etc. Catalysts are also a huge component of the trades I choose to enter. There needs to be some sort of underlying story or upcoming event that I think will drive the share price higher in the near term. With the right balance of technicals, fundamentals, and catalysts, there are some great opportunities to be found in the stock market. I appreciate the follow – Cheers!

      Reply

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