Biogen popped as planned. Are you in…and should you stay in? (September 06, 2012)

by DAN BIIB 
I’m Dan Fitzpatrick at StockMarketMentor.com on Thursday, September 6th. First of all before we get into Biogen ( $BIIB Biogen Idec Inc ) I want to give you a heads-up, we are going to be releasing Option Market Mentor for new members a couple weeks from now. I believe the roll-out starts on the 18th of the month, which is a Tuesday or perhaps later on in the week, but that’s the week we’re rolling this thing out for new members, so if you have not done so already just go over to OptionMarketMentor.com just like StockMarketMentor.com only OptionMarketMentor.com and sign up to get on the free email list that way you’ll get all the latest news. We’ve been working on this for quite a while, we’re still tweaking it, but I’m confident that you’re going to learn a heck of a lot about options and make some money too. If you sign up there’ll be a risk free trial so there’s no downside for you. It’s like a risk less trade, how can you loose? So I want you to go do that, okay? Now, back to Biogen ( $BIIB Biogen Idec Inc ), this stock fits my squeeze conditions, which is why I have been featuring it the last few days, but I have, over in the Strategy Session, about 16 squeezes that really fit this category so I want you, members, to look at that. Here, what happened? First of all Biogen ( $BIIB Biogen Idec Inc ) was trading sideways, we saw this, this was resistance, this resistance actually held up, it didn’t fail, we got a breakout and then; Boom! The next day it started to move lower. We have bounces along the 50-day moving average, hadn’t touched the lower Bollinger Band for how long? Back here; so this was trading in the upper part of the range. What happens? High volume, breakout today; this is what we’ve been expecting, and by the way if you’ve been holding this stock waiting for this breakout don’t take profits now because it’s up three and three quarters percent, this is what you’ve been waiting for, you’ve been waiting for this move to start. And why are we interested in volatility squeezes? Because they tend to go farther and faster than people think they do. This breakout here is much different than this breakout here; here the stock had to traverse the entire Bollinger Band width and they weren’t particularly narrow, and then when it finally broke out, then that was the end of it, Boom! They’re selling. Similarly here, if you’re trading this break out to here fine, you’re making some money, but over the next few days it peters out and then trades sideways. This is different, while I don’t expect it to go up in a straight line I definitely think this has more upside to it, so my suggestion would be just to stay long this stock and depending on how it works I’ll either continue to feature it here or we’ll move on. Anyway that’s it here. Again if you haven’t signed up for the email list so you can get all the information on OptionMarketMentor.com go over and do that now. Thanks a lot, I’m Dan Fitzpatrick and I’ll see you next time.

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