Trade: Cedar Fair & Isis Pharmaceuticals
Notes:
Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash. Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.
Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash. Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.
With the morass driving the markets via Greece, Puerto Rico, and the jobs report tomorrow, I took advantage of some pullbacks in stock prices to add to my positions in both Cedar Fair and Isis Pharma.
WIth Cedar Fair, I added a small position at a price of $54.40 despite the fact that the stock was only down a few percent from where I purchased my first position. The stock was showing technical signs of being oversold and it had crossed the 5.5% yield mark. I needed to keep the addition small, though, as I see potential risk for the stock to go lower yet. With the jobs report coming out tomorrow, there's potential that yield replacement stocks, such as MLPs (which Cedar Fair is), may take additional hits as interest rates rise. That said, with such a high yield, I feel there is some support here both from that and a couple technical indicators such as the MACD and slow stochastics which I thought I read signs of a bottoming in the prices. The 200 day average provides support at just over $52 as well. I still have room to add on as much as another third of a position, but I am keeping that cash handy for a much stronger pullback, in case it happens.
I also decided to buy some Isis Pharma at $57. This, too, was a small position, but since the last few times we hit this price range, the stock held and then bounced back up, I felt it was wise for me to pick up a little more to my position this time around. Contrary to previous times the stock hit these prices, the stock is now below all levels of support in terms of moving day averages. It also could be suffering as a victim from excessive amounts of biotech IPOs again. Since this company doesn't have any near-term decisions and catalysts, it's likely being sold to pick up some of these IPOs. The market is overly saturated, causing supply/demand issues in the amount of smaller biotech stock that is available. There's a significant chance this stock will go lower yet, as I see the next levels of support at about $55 and then $51. I have about one third of my desired position currently in place and intend to watch what happens for better buying opportunities at lower prices. The battle I see here is between the supply/demand issue being created by IPOs crossed with the fact that biotech stocks are likely to lead the market higher when the dust with Greece settles and people look for high growth to counteract the increase in interest rate growth. Next potential buy point I will watch is the $50-%51 area, as that will be down another 10% from this price.
WIth Cedar Fair, I added a small position at a price of $54.40 despite the fact that the stock was only down a few percent from where I purchased my first position. The stock was showing technical signs of being oversold and it had crossed the 5.5% yield mark. I needed to keep the addition small, though, as I see potential risk for the stock to go lower yet. With the jobs report coming out tomorrow, there's potential that yield replacement stocks, such as MLPs (which Cedar Fair is), may take additional hits as interest rates rise. That said, with such a high yield, I feel there is some support here both from that and a couple technical indicators such as the MACD and slow stochastics which I thought I read signs of a bottoming in the prices. The 200 day average provides support at just over $52 as well. I still have room to add on as much as another third of a position, but I am keeping that cash handy for a much stronger pullback, in case it happens.
I also decided to buy some Isis Pharma at $57. This, too, was a small position, but since the last few times we hit this price range, the stock held and then bounced back up, I felt it was wise for me to pick up a little more to my position this time around. Contrary to previous times the stock hit these prices, the stock is now below all levels of support in terms of moving day averages. It also could be suffering as a victim from excessive amounts of biotech IPOs again. Since this company doesn't have any near-term decisions and catalysts, it's likely being sold to pick up some of these IPOs. The market is overly saturated, causing supply/demand issues in the amount of smaller biotech stock that is available. There's a significant chance this stock will go lower yet, as I see the next levels of support at about $55 and then $51. I have about one third of my desired position currently in place and intend to watch what happens for better buying opportunities at lower prices. The battle I see here is between the supply/demand issue being created by IPOs crossed with the fact that biotech stocks are likely to lead the market higher when the dust with Greece settles and people look for high growth to counteract the increase in interest rate growth. Next potential buy point I will watch is the $50-%51 area, as that will be down another 10% from this price.
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