Reading the tea leaves:
Seems like CTIX SP has just been meandering in a narrow range lately. Light volume has been unconvincing, but usually not a good sign. Saw very strong support at $1.50 to $1.55.
Today's trading was a change, and positive. Volume was decent and noticeably picked up at the very end of the day, along with the SP.
I think we may be in a run to the daily 50 day moving average of $1.75--within a day to a few days time. There will probably be some resistance at this level, and may take some news to break higher. My thinking is that if the bio indexes continue to improve, then CTIX benefits at this point. I think this trend is good for a few more days/weeks. I think we are overdo for some kind of news, so not discounting a further move. The Stochastics, daily, is at a low 31 and currently rising. The Stochastics, 60 minute, hit a top of 100, and bumped into the upper Bollinger band. Will be interesting to see if the price just blows through this normal overbought situation (60 minute). If so, could be a nice bound upwards.
Nothing concrete driving this stock right now, but today showed an upwards bias, very positive.
I added to my trading account at $1.55, expecting to hold for approximately $1.75, could be longer depending on what occurs at that point. Very tight mental stop loss too.
The biotech indexes have been doing much better lately, the sector was short term oversold, and probably remains so. Although, the easy money has been made. Probably more volatility ahead. Mid-term looks to be higher; but, there may be much more pain down the road in time. It will take a catalyst for another drop. Could be general market, or political/regulatory. Don't forget, what drove the biotech sell off started from the utterances of one senator during a Congressional hearing. This debate is not over yet. Today was very positive for the biotech indexes because of merger activity, and earnings. The merger and acquisitions thinking is always good for CTIX. Many times a sector rebounds after a correction due to the positive activities of that sector. Positive influences include--merger and acquisition activity, share buy backs, dividend increases, earnings, and forward looking positives. There is a lot of money sloshing around in the big bios. Multi billions of dollars available for positive activities. The party is likely to continue until political pressure is threatened.
Just a side note: Was reading an article that pointed out that one drug is priced 1,000 times more in the U.S. than in a third world country. That the U.S. has the world's highest drug prices. My guess, the power of strong drug/pharma and educational lobbying and political influence (both sides of the isle and not necessarily for the little guy). My guess, the educational support is what tips things in favor of biotech. Much of the activity is driven by and benefits educational and research institutions. Personally, I am just an observer.
There is correlation and divergence both between CTIX and the bio indexes. I think it is in CTIX's favor that its share price was already way off the highs before the biotech sell off. Companies without earnings will be scrutinized more so than the profitable big boys, and this will work against CTIX and other development stage bio and tech companies. Still, the BIG wild card will be news developments.
Just thinking out loud folks. Helps me in my trading to put ink to paper sometimes.
Long term solid CTIX long. I believe in the science. Short term, hoping for a little rebound coming.
