Check out the chart of Moderna ($MRNA). (March 11, 2020)
MRNA
Well, another ugly day in the market. Frankly, there is really nothing to do; if you are a day trader and a really good one you have got to be loving this market. This is the end of the day video and I can’t really help you out with that right now. Everything is kind of different that kind of moves from one day to the next, but I will show you Moderna ( NASDAQ: MRNA ) here. This is a biotech company that is working on a vaccine for the Coronavirus. That is why the stock just popped up here.
A couple of things are pretty obvious to those of you who really pay attention; there’s not going to be a lot of money in the vaccine for the Coronavirus because the demand is going to be so high, which is a wonderful thing if you are the only guy that’s got what is in demand. But when it’s a lifesaving thing you can’t exactly charge a lot of money for it. You are going to get shot if you do.
So whatever they come up with, if this is the company that does come up with something and I think Gilead, who the heck knows, is going to do it at this point? There is all this buzz going around; I would just say that trying to trade biotech or drug companies with the idea that they are going to come up with a cure for what ails you and be able to make a lot of money on it, man, that’s a real, real small eye in the needle that you are trying to thread. I wouldn’t be thinking about that at all. Don’t even think about it. But you can look at a chart and trade against what other traders are doing because a lot of traders are going to try to make that trade.
I have Moderna ( NASDAQ: MRNA ) on my watchlist here and this is the first day in a while that, actually the first day since before this popped, that I am looking at this thinking, okay, well maybe this is worth a shot, I would have to give it still a little wide berth on the percentage risk. But if you are buying it here in the 23.60s, you keep a stop just below yesterday’s intraday low, that’s the 50-day moving average, and it’s a little bit over 10 percent but you have got to give a stock like this a little bit of room. If we start getting buyers coming into this stock this could turn out to be a really nice entry for you.
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