Little Bio Stocks Flying

Small bio stocks have been going strong recently. It maybe there a strategy to catch little jumpers while there are jumping. The hard thing is to find a pattern when they still start to jump and when the jumpers stop. It looks they start to jump when the general market has been rallying for a while and they stop when the general market starts to reverse. If this is true, it can be used a signal to catch the jumpers and to measure the health of the general market.

Here are two jumpers:

Peak Indicators

When the stocks move higher and reach new highs, more and more people try to predict a peak.  Fundamental valuations, technical divergences, and extreme sentiments are the parameters people use for predictions. All these parameters are relative. They might work in some scenarios but not others. To me, timing is the key. Trading is like a battle, you need to explore the situations to find out when to start, retreat, support, enforce, and end. Evaluate the situations and move along with the forces.

Currently following peak indicators are still missing:

• New low expansion
• Volatility expansion
• COPP cross and divergence
• Paper Cover Stories
• Extreme sentiments, like AAII above 50