Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the disable-gutenberg domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/jwl23/public_html/rd.johnlander.me/wp-includes/functions.php on line 6131
GWPH — FDA has fast – If, Then… Market Timing

GWPH — FDA has fast

By Rod David | April 28, 2014 - 7:57 am

GWPH — FDA has fast tracked Sativex for treating cancer pain. Great news for the company, not for our short. We shorted it from a range whose internal resistance is 70.55-71.50. The stock opened pre-market at 70.50, rose to 72.30, and has since pulled back as low as 69.29.

Opening under 68.95 would suggest this type of news was discounted already by last week”s rally, and that its knee-jerk reaction up will melt away intraday. Opening above 69.50 might still be at risk, but I would rather not be exposed to another updraft intraday that could prove to be much more substantial.

Check this post”s comments thread into and out of the open for my updated observation. And a Trade Alert will be sent automatically if I cover.

SECTOR — Today”s news on GW is probably more significant for the rest of the sector. It broadens what I noted last week, that Morgan Stanley”s opinion on GW reinforces the investment sector”s interest in the industry. FDA has just reinforced the industry”s legitimacy, to the degree that its actions can do that. The sector”s April 15 low is looking increasingly better.

Posted in Bigger Picture