NEW BULLISH Plays
Santarus, Inc. - SNTS - close: 17.89 change: +0.56
Stop Loss: 17.25
Current Gain/Loss: unopened
Entry on April -- at $--.--
Listed on April 01, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.3 million
New Positions: Yes, see below
Why We Like It:
The stock market's sell-off today did not stop the rally in SNTS. This is a biotech company. In early March SNTS reported earnings that beat on both the top and bottom line. Management raised their 2013 guidance. Shares have rallied on this news. The stock is clearly overbought and due for a correction but if traders didn't sell today with the market reversing when will they sell SNTS?
Currently SNTS is hovering just below resistance at the $18.00 mark. I am suggesting a trigger to launch small bullish positions at $18.10. If triggered our target is $19.90. The $20.00 level is likely round-number, psychological resistance. I do consider this a higher-risk, more aggressive trade. Investors will want to keep their position size small. Today's low was $17.31. We'll use a stop at $17.25.
FYI: SNTS will host an investor and analyst day on April 11th.
Trigger @ 18.10 *Small Positions*
Suggested Position: buy SNTS stock @ (trigger)