NEW BEARISH Plays
Isis Pharmaceuticals - ISIS - close: 29.12 change: -1.80
Stop Loss: 30.15
Current Gain/Loss: unopened
Entry on July -- at $--.--
Listed on July 23, 2013
Time Frame: exit PRIOR to earnings in early August
Average Daily Volume = 1.7 million
New Positions: Yes, see below
Why We Like It:
Biotech stocks were underperforming on Tuesday and ISIS was helping lead the way lower. The stock received a downgrade due to valuation this morning. ISIS recently issued bullish data on a study for a new cholesterol treatment that lowered triglycerides but the news failed to help the stock price. It's possible the news had already been priced in.
The breakdown below the $30.00 level and the 20-dma definitely looks short-term bearish. Yesterday's intraday low was $28.80. Today's low was $29.02. I am suggesting a trigger to launch bearish positions at $28.70. If triggered our target is $25.35, which should be just above the rising 50-dma. I am suggesting we keep our position size small. The latest data did list short interest at 16% of the 102.8 million share float.
Trigger @ 28.70 *small positions*
Suggested Position: short ISIS stock @ (trigger)