A little disclosure: My first stock purchase ever came in May, 2013. So, obviously, I am not an authority on market cycles. But could we be in the midst of what will soon be our next bear market? If so, there are not too many individual stocks that will rise against that lowering tide. One notable exception, however, just might be a development-stage biotech, on the verge of significant inflection points. There are many perfectly good companies out there, with accelerating earnings growth and strong balance sheets. But the climate of the overall market tells me that I'd rather be in cash…....OR in AMBS.
Try to relate to this analogy...AMBS is still very much a toddler (in the biotech world). No telling where the kid/stock will go. However, AMBS has supportive/wealthy/well-connected parents…So day-to-day means nothing, think year-to-year. This isn't an MJ stock. AMBS is solely for longs, plain and simple. Watching it move a tenth or a hundredth of a point everyday will drive you nuts. If you have confidence in the company and pipeline, just stuff it in your sock drawer…it won't make you a millionaire any time soon (if that was what you were hoping for). Remember, rock beats papers and tortoise beat hare. There's an old saying in on Wall Street, that goes way back: "Bulls make money, Bears make money but PIGS get slaughtered."
Judging by the degree of pessimism in the market I am expecting biotechs (in particular) to have a sharp reversal on Monday. The following: .786 Fibonacci #; slow stochastics; accum/distr; macd; rsi; volume; adx; two year chart 200 dma, etc all show very oversold as well.