11Nov3:06 pmEST

Dicerna for the Discerning Trader

There is nothing inherently wrong with choosing to abstain from trading individual biotechnology issues. After all, we have seen plenty of examples of the years of biotechs looking sharp, acting well with promising drug(s) in the pipeline, only to gap down an obscene amount due to a disappointing drug trial and/or an unfavorable decision by the FDA, among other reasons. Simply put, every trader's risk tolerance will vary from person to person depending on a multitude of factors. 

But when the biotech sector is improving and acting better en masse, I want to take notice and keep an open mind to what could be a myriad of fruitful opportunities. 

Dicerna Pharmaceuticals (DRNA), a gene therapy play based out of a Bostons suburb, has attracted interest from major healthcare players like Roche and Eli Lilly already, including Roche throwing $200 million in a partnership focused on developing drugs for pain, cardiovascular and metabolic diseases, and neurodegenerative disorders.

On the DRNA daily chart, updated below, we can see the stock attempting a long base breakout with earnings out of the way. Indeed, there seems to be a growing number of mid-cap bios improving technically, warranting our attention into the holidays. Some more M&A in the sector would not hurt the cause, either, and DRNA's $1.22 billion market cap makes it a strong takeover target from some of its major partners. 

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On a separate note, today marks five years to the date that MarketChess.com began.

I have always thought, both privately and occasionally on this website, that without you, the reader, continually clicking over and checking in to read, this website essentially amounts to a personal diary.

While there is nothing wrong with that, per se, your loyal readership five years into Market Chess is greatly appreciated, particularly in what can often be a cutthroat industry (especially behind the scenes) where every so often you must contend with those who seem keen on trivializing your work and usurping the market forces of genuine reader demand for your content. Over the years, the cliquish nature of "FinTwits," or the Twitter Finance niche, has seen a handful of people I once trusted and respected decide to turn on me, for whatever reason. 

But I am still here, and so are you.

Above all else, the overwhelming majority of readers, Members, and Twitter/Stocktwits followers are genuinely positive people who make this entire endeavor more than worthwhile every day of the week, and twice on Sunday when I film the Weekend Strategy Session video. 

Thank you again for your loyal readership and I hope to be here with you five years from now for the Market Chess ten-year anniversary. 

Remember American Express? Coming Home for the Holidays...

 
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