Biotech Values

[linhdtu]

My explanation is even simpler than that.

Price is always set at the margin in a market system. And the margin is the retailers. And the retailers jump from one hot stock to another.

I look at arna,vvus and orex as an example. None of these companies have any earning, hence no p/e ratio to speak of. So tell me why did arna make a round trip from 3 to 8 and back (and then some); vvus was 12 and changes with no earning whatsoever and the same with orex.

To me psychological factors are more important than TA or I may even say that psychological factors help me make sense of certain TA rules.