Shorting Gilead SciencesIt appears the bull run from the beginning of 2012 is coming to an end and profit taking is now taking place in Gilead, leading to a correction in its price. Similar set ups/ topping formations can be seen in other Bio-tech stocks and Gilead has one of the biggest pullbacks out of all of them. This can give a nice entry for a short position. Check out my posting of CELG to see another shorting candidate in the Biotech industry.
GILD trade ideas
weak sauceThe Dec/Mar highs have capped price post earnings. This thing was halted...everybody was looking for a monster move...the analysts were way off, but the quarter's news appears mostly baked in. This sets up an interesting fade opportunity. (Personally am looking at the May 70-65 Put spread as it really limits risk if wrong and all the extra IV is getting sucked out)
GILD Another Bounce Play In the MakingDisclosure: Long Shares @ 68.09
On Friday, Mar 28th, I bought shares of GILD right at the 200-ma for a bounce play, this is one of the strongest biotech stocks and should continue to hold in an uptrend for at least a little while as its hit drug is tracking huge numbers in the market and the pipeline is strong, I think a buy here for a couple dollars bounce could definitely be playable as the RSI is oversold, and the 200 MA is being defended strongly
Gilead Sciences Sets Up As A Beautiful Short The biotech sector is in one of the biggest bubbles since the Dot.com era. Some of the largest biotechnology companies in the world have doubled and tripled their size in the last year. One such stock is Gilead Sciences, Inc. (NASDAQ:GILD). The stock is hovering up 100% from its lows a year ago and has a market cap of $128 billion.
Reasons For The Short:
1. Biotech sector in a bubble with cracks emerging.
2. Gildead Sciences is up 100% in the last year with no significant pull backs.
3. The valuation is unstustainable for Gilead Sciences in the near term.
4. The stock has not been able to push through the technically important $85.00 level.
Overall, this sector has been an area where money has continued to flow. The music appears like it is coming to a stop. Gilead should have a pull back to $76.00 then $65.00.
Gareth Soloway
www.InTheMoneyStocks.com
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