Bull Ringer

VIVUS Inc, VVUS great chart

admin — Sun, 14 Jun 2009 04:53:15 +0000

My friend recently introduced to the beauty known as VVUS. Vivus Inc. is a pharmaceutical company focused on obesity drugs. The price has ranged from 2.72 to 9.27 in the past year but since its low of 2.72 in March when almost all stocks hit their year low, this stock has been gaining momentum off of news and volume is picking up. It is really rare to see a pharmaceutical company with a stock has been this stable while able to maintain buying momentum. I have no position in this but I think I will drop a few grand because technically this is a great play. There hasnt been any dramatic news that has caused this to jump even though this Reuters article could mean better things to come. Below is a chart illustrating my point.

Covered TEN at 7.02

admin — Mon, 11 May 2009 13:53:18 +0000

Apparently there was an analyst upgrade that shot the stock up. Pretty ironic in a overall down day but I don’t think I played this wrong so I can live with a 13% loss. New opportunities await.

Short TEN at 6.28

admin — Sun, 10 May 2009 22:39:16 +0000

I shorted Tenneco, an auto part company at the end of Friday’s trading day. This stock has jumped from 2.50 to 7 bucks in a matter of 10 trading days on earnings. So the company had great earnings? The company posted a 1.05 dollar loss compared to a 13 cent profit a year ago. Now I don’t understand the run up, but the impeding run down should be more practical.

I’m shorting this based on 3 main reasons.

1. The stock has gone up 8 consecutive days with volume increasing each day. Friday was it’s first down day with fading volume. This means the accumulation of buyers has run its course.

2. The intraday chart had a low of 6.18 and the fade at the end of the market will most likely continue, breaking that support level and falling below 6 where it will take out other stop losses. There would be no foreseeable support after that. However, I’m not looking to hit a home run as I haven’t done too much research. Therefore I’m still willing to set my stop losses at about 6.85. Hopefully no other bullshit will happen to me like my last post.

3. I got this pick from Tim Sykes. Since other people trade with him, there is what I call a Sykes effect. He says short, lots of people do, dragging down the price.

Here’s a chart of what I’m talking about. I’m writing this now because I don’t want it to appear as though I always post after the fact because anyone can say anything. This also allows anyone else reading this to get in tomorrow since it closed basically at the same price I got in.