Yes first entry. 1500 shares. Afraid to short VXX as don't you think we're closer to the bottom than not? In your case, you traded it right. And continue to do so. Want to buy more long position but not now. Market could continue to push higher. Would you continue to short the VXX even at $19.14?
It's been since the inception of the VXX in January 2009 that it has gone from something like $8000 a share to $19.34. Cause the market has gone up since then with no correction. Enjoy the next weeks maybe months but when this market corrects it will come down very hard. And then suddenly those who bought shares of the VXX instead of borrowing them to short will be making money while everybody else is crying.
Tee you are so right in what you post. Yes could the VXX drop further? Sure if the market (S&P) keeps going up and volatility is to the upside. But what happens if Greece defaults? What happens if we have a repeat of the debt ceiling fiasco of Aug 2011 again in a Oct 2015? What happens when we have an interest rate hike be it Sept or even January? And then we have the presidential elections next year. I think buying a little bit at a time at these prices will start to yield huge rewards down the road maximum a few months. I bought at 20.76. Too soon. But if the VXX drops to like 16-17, I'd start buying more aggressively. When this market falls it will fall hard, maybe harder than it ever has since the 2008 crash. Valuations of companies, their stock, and the overall economy don't add up.
iamhowsweetitis: I agree wholeheartedly with your analysis. It is logical and explains why shares have has so much downward pressure on them from the $135 PM price on Wed and how it kept dropping all throughout that day and again yesterday to around $121. A $14 drop is more than 10% from the PM high. But yesterday after it hit $121 the shares gradually found strength and added back $2. Do hoping $121 was the bottom and with a positive market today maybe we can gain back another $2-$3. Sadly I bought at $130. Hopefully in about 7 weeks I'll look back at my $130 per share purchase price from $140-$145.
qdelfan-I like this scenario. Let's say you are right and early approval takes place which causes shorts to massively cover in a short squeeze. 122.90 could pop to $150 in a scenario like that. Do you agree?
Just saw this post. So here you go. Time to load up on puts. FB is at $79.
Hey Art - seems like you're quite off on your candlestick readings. From the recent low in the $76s, FB looks like it will hit $80 today. What do you have to say for yourself?
Here is a recap of recent key analyst commentary investors should be reminded of heading in to the earnings print.
Bernstein: Gilead Needs To ‘Pull The Trigger' In Acquisition Hunt
Bernstein analyst Geoffrey Porges commented on April 21 that Gilead needs to continue remain focused on the M&A front with a bid for Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX). The analyst noted that many investors "remain heavily exposure to mid and large cap biotech stocks" and further consolidation within the industry is expected.
The analyst suggested a potential transaction would come with a $45 billion price target. Shares of Vertex at the time of the analyst's comments were trading with an approximate $30.4 billion market capitalization, and haven't moved much since then.
The acquisition would satisfy Gilead's need for $5 billion to $7 billion in incremental revenue by 2020 and that Vertex has "the best profile" to complement Gilead's existing product lineup.
RBC Places ‘Low Probability' Of Gilead-Vertex Deal Happening
RBC Capital Markets analyst Michael Yee commented on April 21 and offered an opposing view to Bernstein's analyst.
According to Yee, Gilead should have no issue with paying a price tag of $40 billion to $50 billion to acquire Vertex, but the company could (and may want to) buy "a lot of other things." The analyst suggested a better strategy would be to acquire 10 different companies at $1 billion to $5 billion each that will create more value versus buying only Vertex.
Moreover, Yee noted that Gilead had seen some negative press with its $85,000 Hep C drug in the past and acquiring Vertex's $220,000 to $300,000 drug for an orphan indication for kids may raise further questions.
Yee added that the acquisition may not necessarily fit in with Gilead's strategy as management has stated that they derive the greatest value by acquiring Phase II assets and helping smaller companies through Phase III and manufacturing.
Crazy stock. Was $135 AHs now $125. Like an idiot I bought at $130. Will we see higher prices before July 05????
Nice to read well thought out info and analysis on VRTX. If approved before July 05, how high do you think shares will move? $135? $140? Any insight to this, as it is an investment, would be very helpful.
To put some perspective. Nasdaq up 23 points and Apple is trading right at where it closed on Monday at $126.32. What does this mean? Stay away. You will have a better opportunity to buy at lower prices. This stock is in a short term downtrend. True you might see a little pop Thursday cause that's the day the dividend is distributed so people might re-invest to buy more shares. But if you were smart and have patience... Wait. The overall market is in the beginning of a correction. Nothing goes down in a straight line. The VXX trades contrary to the S&P is about to hit a new 52 week low (when S&P goes up, the stock trades down, when it goes down, the stock trades up.) my bet is by mid June we will touch 120 as the whole market will drop. Stay tuned and buckle up. The drop will be steep like one of those Disney rides.