Video Chart Reviews For Mon March 9 + KYTH and ZGNX Trade Strategies.. Video Chart Reviews For Mon March 9 + KYTH and ZGNX Trade Strategies...Video Chart Reviews For Mon March 9 + KYTH and ZGNX Trade Strategies..Video Chart Reviews For Mon March 9 + KYTH and ZGNX Trade Strategies
$KYTH is offering $125M worth of shares, price not determined yet. If a fair price, I'm inclined to trade it because it will be liquid for a time, and with Goldman, Merril, and Leerink being co book runners, it's a good bet they will run this stock, notwithstanding the asset is worth upwards over $600M a year in peak sales. I still think this one will end up being acquired by $AGN by the end of this year.
$ZGNX - Just when I thought a big deal and/or acquisition news might be coming, the stock hit $1.96, then got shorted to death. This is almost always a sign of an offering coming, as those who are planning to take part in the offering, manipulate the price as high as they can, then short it down close to the offering price. They then are assigned their alotment of shares out of the market, cover their mass short position to take profit there, then dump a lot of their offering shares at an inflated price.
Therefore, my strategy for ZGNX is to wait for an offering announcement, wait for price, then by a lot of shares and play for a "quick one day scalp" trade, which I think if the offering is $1.50, then $1.70, if $1,25, then $1.50 to sell the scalp shares.
$SGYP -- Same story with me as always. I remark in the show "SGYP is as low as it will go, I should load up" >> of course, I DIDN'T (ask subs who were in my show about this)!
It's important to understand there are 28M shares now unlocked, which were purchased at $4.23. Those share holders likely hold most of the short interest, and should now resume the process of bringing in higher lows, and higher highs in the current trading channel. Therefore, any real pops on SGYP, at least half a position should be sold into it -- ride the process, play the same game they are playing! We will pub cover this one as the catalyst gets closer.
Charts also reviewed in this video - $MEIP - Not ready to run again yet. $BDSI - Also not ready to run yet, but looks a little better than MEIP.
$SPY - $207 is the line in the sand here in this current channel in my estimation. If it breaks that level and CLOSES below that on volume, then we are looking at $202 again. This is possible, but not likely, at least not yet. Consider another hedge at $207 (Last week's hedge worked).
Additionally, I offer commentary on the oil situation, and give a brief explanation why I think we might see an oil shortage that drives the price back up, rather than $25 a share that th CNBC short and bash people love to yell about!
Also, debt ceiling stuff discussed and explained, and explanation given why I resent my email correcting the error I made saying we will have issues with this now.. The truth is that we will likely see issues with the debt ceiling in October, when the over spending USA government 'runs out of money.'
More in the video, so give it a good listen!
Scott
