If you look at the ACAD chart November, 27th 2012 it also had a sell the news event. ACAD traded about a $1.00 lower per share over 10 days. The 20day SMA finally caught up with it and ACAD continued higher from $4.40 to today's price of $7.70. It took about 4 months but pretty much doubled your return on investment.
Look at the chart and see for yourself. I am about to go all in again on $TSRX. Barring no whipsaw event that washes me out again. Tried to catch the bottom once already.
ACAD is acting stronger than TSRX, but unless there's a major surprise, TSRX is closer to market. ACAD's revenue potential on the lead drug is probably much higher and they have no known competition. TSRX has the potential generic issue. Bottom line, compared to OPTR, TSRX looks 50% or more too cheap and just needs either a partnership, progress toward marketing approval, or acquisition to progress toward an OPTR-like valuation. VPHM, or CBST should buy them now before large pharma does. Let the bidding begin!
I would be careful trying to play the charts with this one. They won't tell you when the buyout/partnership is going to occur.
The big money will be made by buying and holding. You may be able to trade around a few percentage points here, but the big gains will come overnight with an announcement. I wouldn't want to be out of this one trying to trade around whatever DMA you think is useful.
Agree, but different approach because of the "whipsaw" you describe. I am simply accumulating more as the market will allow. Longer term, it is a "no-brainer" from what we know at this point. May not catch a bottom, but won't be swinging in the wind or chasing if it starts to move.