Why We Love These Biotech Setups Now

There's a lot of uncertainty in the market with earnings and the upcoming election. Regardless of what happens, there is one area in the market that traders expect to be filled with opportunities.   Dear — Jeff Bishop here, I expect the market to remain choppy as we approach the elections.  You see, the markets just hate uncertainty.  But regardless of who wins, I think biotech innovation could lead the way and the sector gets the added boost from vaccines, therapeutics, and diagnostics that are being developed.  That's why this issue of All-Access is all about the exciting trading opportunities we're currently seeing in the biotech sector.      Scholar Rock Holding Company (SRRK) took yesterday's Chart of The Day trophy.    Scholar Rock Holding Company announced positive interim results of a phase 2 study of SRK-015, a drug focused on improving motor function in patients with Type 2 or Type 3 spinal muscular atrophy.  The stock gapped up 25% on the news from Monday's close of $13.31. Many traders on Twitter were eager to short this one when it was at $20. Sure enough, they must have been even more "eager" at $25… ...and they must have "loved" it at $30!  The results were good enough for the stock to go to a high of $31.69. That's over a 100% move since the previous day's close. Unless you are a seasoned biotech analyst or have access to insider information, it would have been impossible to capture the entire move up. However, the stock gave multiple setups for entries long and short.  If you were involved and made money— keep it up. If you missed it or lost money in it, take a look at the chart below to see how you can trade something like this next time it happens.      Note: above is a 3-minute chart instead of the usual 1-minute chart. The reason for that is that the action was simply too messy on the 1-minute chart to get clean signals. Whenever a chart is too hard to read, zoom out, and things might become more evident.   The main lesson here is that the stock is not a long or short just because it's too low or too high. Listen to what the stock is telling you. And make sure to research the stock before you trade it: the float, the catalyst, etc.  If you're interested in learning how to trade biotechs, grab these 4 free gifts as a bonus for attending our next biotech training with Kyle Dennis.   Seeing a stock go up 118% in one day and then push some more in the after-hours can get very tempting. It's easy to see why many beginning traders and investors get lured into the small biotechs world, trying to find the next big cure and make many-folds in the process.  The reality is, as always, a little more harsh— small biotech stocks are a curse as much as a blessing. And above all, they're nothing but a gamble, and gambling is one thing you want to avoid as a trader. These companies tend to develop one key drug and any data readout becomes what we call a "binary event"— good data makes it, bad data breaks it.  The greatest minds in the world are getting paid top dollar to research and predict trial outcomes for drug candidates and none have found a consistent way to do so.  We love biotechs for the volatility they provide, but we aren't going to lie to you and say, "here are the next 3 stocks that will double overnight"— we don't know what the results will bring and nobody does.  But we have found an edge in biotechs and it doesn't rely on the unknown.  See, the abovementioned greatest minds don't get paid for completely nothing— they still provide valuable opinions and estimates for big money to make their bets.  When the market believes a drug (and a stock) has a good chance of delivering - you'd see a run up into the data readout.  Conversely, if the public thinks a flop is in the making, there'll be no enthusiasm (or bid) going into the news. We love taking advantage of anticipation moves and present to you 3 stocks we believe can move big into the upcoming data:   Liquidia - LQDA The company's main product candidate is LIQ861, a drug for the treatment of pulmonary arterial hypertension.   The FDA has scheduled a PDUFA decision date for the drug for November 24th, 2020— a little less than a month away.   LQDA stock has been drifting lower with resistance at $6, but has found a bid over the past few days on high volume. Combined with a 10%+ short interest, it presents a good setup shall the strength continue.  Going into the decision, our play is as follows: Buy Zone: 4 to 4.50 Profit Zone: 5.90 for half, 6.90 for the rest, leave small for a push to 8 Stop Zone: 3.60 or below     Y-mAbs Therapeutics - YMAB Y-mAbs is awaiting an FDA decision on Naxitamab, a drug candidate for the treatment of relapsed/refractory high-risk Neuroblastoma The PDUFA priority review is scheduled for November 30th, 2020 The stock has been consolidating cleanly at the highs indicating confidence in the company. It recently started breaking out higher and an 11% short interest can only help it along the way. Our trade plan is as follows: Buy Zone: 40 to 43 Profit Zone: 49.5 for half, 53 for the rest, leave small for a push higher Stop Zone: 39.50 or below     Supernus Pharmaceuticals - SUPN SUPN's key drug is SPN-812, which the company is hoping can help with in treatment of ADHD PDUFA is scheduled for November 8th, 2020— about 10 days away SUPN is not a classic trade. The stock is sliding steadily lower as the market thinks chances for success are small. We'll be watching the decision, and would love to see a positive one. When the announcement is not what the market bets on, marvels can happen. Sudden change of demand and fomo can drive the stock far up, and current 10% short interest will only be of further assistance.  Ideal trade plan on positive decision is below: Buy Zone: 25 to 27 Profit Zone: 29.5 for half, 34 for the rest, leave small for a push higher Stop Zone: 24.20 or below     If you want immediate access to RagingBull's most comprehensive biotech catalyst watchlist each week, then join Trade with Kyle here.   Look at the markets any day of the week, and you're almost certainly not looking at the full picture—far from it!  You see, trades are being made every day that are hidden from view of the traditional public markets. These trades come from the trading "dark pools" where massive block trades are made by huge-money traders targeting enormous profits. But regular traders can get in on the action and follow the "big money" to target gains from these hidden trades. Join Ben Sturgill here in one of our favorite podcast episodes as he explains how:     Listen to the podcast     You Probably Won't Hear The Media Talk About This… By JC Parets of Chart Hunter AMA: What are your favorite indicators? By Nate Bear of Weekly Money Multiplier Watchlist: 3 Hot Digital Stocks to Trade Now By Ben Sturgill of Daily Profit Machine This White-Hot, Green-Hot Opportunity Could Be the Next Big Public Listing By Jeff Bishop of RagingBull Investor RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 Click Here to stop receiving emails from support@ragingbull.com Unsubscribe from all RagingBull emails DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at https://ragingbull.com/disclaimer. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. AnyRagingBull Service offered is for educational and informational purposes only and should NOT beconstrued as a securities-related offer or solicitation, or be relied upon as personalizedinvestment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision. RESULTS PRESENTED NOT TYPICAL OR VERIFIED. RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial. However, subscribers' trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment. RAGINGBULL IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Neither RagingBull nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor(IA), or IA representative with the U.S. Securities and Exchange Commission, any state securitiesregulatory authority, or any self-regulatory organization. WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services. However, Ragingbull.com, LLC, its owners, and itsemployees may purchase, sell, or hold long or short positions in securities of the companies mentioned inthis communication. If you have a current active subscription with Profit Prism you will need to contact us here if you want to cancel your subscription. Opting out of emails does not remove you from your service at PetraPicks.com.