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I have 2 stocks to watch at this time MU and AMD. AMD Q2 earning will be on July 25th (Wednesday) next week after market closed. Any questions, you can post on this forum. I will try to answer your questions.
Post by 2T on Bio stocks on Jul 19, 2018 8:40:42 GMT -6
I would like to discuss little bit about Bio stocks. Bio stocks are the most high risk and high return stocks. If Bio stocks are in phase I/II/III trial and if they have a good news and near FDA approval drugs. The potential will be a high reward that this stock will jump up a lot in one day. Right now, I have this stock in mind VTGN. VTGN is currently on VistaGen Therapeutics Initiates Phase 2 Study of AV-101 for Major Depressive Disorder. Hopefully, this phase will be done sometime Q2 next year. Do your own research and invest it right. This stock won't move a lot anytime soon. But keep the eyes on it.
Stock market from now til the end of this year. The market might be in the wild ride at some point due to the trade war (tariff), Fed interest rate, employment, housing market news, etc. To be safe, always step aside before Dow/Nasdaq down hard and wait until the Dow/Nasdaq hit bottom then jump back in. The Dow hit almost 27000 points, but so far it kept between low 24000 to 25000 points. Nasdaq also hit almost 8000 point. But, Nasdaq kept moving between low 7000 - 7500 points so far. Smart investment and Good luck.
Here is several tools that can assist you to invest the stocks:
My stock pick from now til of next year - AMD and MU. MU is moving up and down very strong. Last couple weeks, MU hit 51's and it is back up to 57 in the last few days. AMD resistance price is around 16.65. AMD has a lot of good news lately EPYC CPU, Ryzen CPU (Threadripper, 2nd generation Ryzen CPU, etc.). These news can push the price over $17 in my opinion. Also, option trading I picked NVDA. NVDA price moves up and down a lot each day/week.
Thought of a day. I am following AMD to the Q2 ER. It seems AMD stock is very strong to the ER. If you invested in AMD. Good luck. My prediction is still the same that after AMD ER on July 25th. AMD will be above $17.
Reata Pharmaceuticals (RETA) company based in Irving, Texas. IPO on May 25th, 2016 starting price $11 and today it is up to $78. BIO companies with good products. It will be up a lot. I meant a lot. Do a research carefully on the BIO stocks before invest them.
What Does It Mean if a Stock Price Goes Up or Down With Little Volume?
A stock moving up or down on low volume is usually a warning sign: proceed with caution. It may mean a move you cannot trust: market uncertainty, manipulation or a thinly traded, volatile stock that is generally riskier to trade than high-volume stocks.
Interpreting Price and Volume Action
Price action reflects investor sentiment. If a stock is rising, investors are eager to buy; if it is falling, investors are eager to sell. But for a move to be valid, the stock price action must be confirmed by volume. As technicians say, volume goes with the trend. Volume shows how much conviction investors have in a trend. When you multiply the number of shares traded by the current stock price, you get the total dollar amount that investors are willing to put at risk. Low volume means few investors are putting only a little money at risk. You cannot trust such price moves, as they are fickle and can easily reverse.
Indecision or Uncertainty When things are unclear, many investors tend to stay on the sidelines and stop trading, so the volume dries up. But if some traders feel compelled to act out of boredom or to entice others to act, their trades can push prices up or down in a slow market. Other traders may act prematurely, hoping to be ahead of the crowd. But if others do not follow those moves, stocks can quickly return to their previous levels.
It is easier to manipulate a stock when its volume is low. All a manipulator needs to do is execute a few carefully timed trades to create the illusion that a stock is moving so he can get others to buy or sell. The goal is to raise the price if he wants to sell and to lower the price if he wants to buy. If you are suckered in by such a move, your position can quickly turn into a loss as the stock you just bought suddenly reverses course on increased volume.
Thinly Traded Stocks
Some stocks simply routinely trade on low volume. The risk of trading a low-volume stock, besides the above reasons, is that behind each stock there is a professional trader who trades it day in and day out and who will try to profit from your order by moving the price away from you so you end up overpaying when you buy or getting less when you sell.