Cramer’s 2012 stock pick is up big this year . . .and it’s about to move again. (June 23, 2012)
ALXN
I’m Dan Fitzpatrick at Stock Market Mentor on Saturday, June 23rd. First of all, before we get to Alexion ( $ALXN ) here, I want to mention I was teaching one of the speakers anyway at Wardens Workshop in Anaheim on Friday and then today. And I mentioned in that workshop, you know I had a PowerPoint presentation that a lot of people didn’t have a chance to see. I taught yesterday and then some today etcetera, etcetera. So I said, you know what? If you guys, if you want it then just, I’ll send you an email or Gary will send it. But we’ve had so many of them that what we’re going to do instead is, and this is to those folks who are either members, members get everything, or on a free trial. It doesn’t matter to me, but I’ll hang it on the website and it will be plain to see. I’ll have Gary take care of it as far as where it actually is. But I’m going to put that PowerPoint on the website for members and those on trial memberships to check out and see and it will include some of my notes as well so I’m confident that’s going to help you become a better trader. Particularly in a really expletive deleted market like we have right now. I mean this is just a really tough market. So anyway, I do what I can to help you out. Okay, back to Alexion ( $ALXN ) here. This is, and I keep, every time I talk about this over the past several months I always mention this because you’ve got to give credit where credit is due. Cramer, in December, went through all these different stocks and I helped him with the technicals and at the end of the day he was choosing between Alexion ( $ALXN ) and some other stock it was an energy stock. Frankly I don’t even know which one it was. Doesn’t that tell you all you need to know? As far as his stock of the year for 2012 the one stock that you really want to own. Well this things up over 30 almost 35 percent this year and so kudos to Cramer for getting people into that stock. Now what do we do though? I think this stock is giving you an opportunity to buy. Here’s why, you get the uptrend there get a little pullback. I guess you could call this a hup, a cup, or a hup if you want to, I prefer a cup. With like a little tiny handle here. This is an opportunity to buy. The stocks been in consolidation for the last couple months, right? Now it’s not pulled back, in fact it’s comeback you know just last week. Boom, we got a breakout that was a fake out. Well, not really we have a two days down and then Friday, what did this thing do? It came down basically to this prior resistance level so it effectively tested this resistance. Hey, is it new support? I would say the answer is yes. So you can be a buyer right now with a stop below Friday’s intraday low of $92.75. You keep a stop just a little bit below that. Just as a nod to risk management. You’ve got to have some kind of stop on your, on your stock but keep in mind that last Wednesday the high was what $99.41, basically a $100.00. So we’ve got about $4.00 overhead from where the stock is right now. We’ve got some resistance; we’ve got a ceiling. We also have though, on the weekly chart, we got a pretty nice uptrend here so what are the chances, what are the odds, what’s the probability of this being the top right here, right now? I don’t really see any evidence that that would be the case. It could happen, I guess if a stocks going to top out might as well do it at a $100.00 as opposed to $95.00 or a $102.00. But, what I would suggest doing is just sticking with the trend. Use Friday’s intraday low as your loss management level here, $92.75. You keep a stop a little bit below that and your not going to get hurt. By the way, you take the stock and then if it starts to move up and by the way remember this is Obama Care week. That stuff will move the market a little bit, certainly Alexion ( $ALXN ). I just don’t know which way it’s going to move it up or down. But I know patterns and this is a bullish pattern. So if the stock starts to move higher you take some stock now and then if it starts to move higher then you take a little more. You’ve got a little bit higher cost basis than $95.95 but guess what? You’re a winner. You’ve got a profit that you’re in and that’s what you want. And then gradually as the stock moves higher you can add a little bit more. You know and gradually build your position. But you’re building that position from a position of strength. You have a profit as opposed to averaging down. Oh, I’ll just buy more when it goes down and then I’ll buy more and then I’ll buy more. It’s just way to; it’s way to much brain damage. Why do you want to do that? Instead buy a stock that’s going up. And how do you, how do you do that? You take a small position to begin with, 50 percent of your normal position size, 30 percent. Whatever the case may be. You take that position you use Friday’s intraday low as your reference keep the stop a little bit before that. Then if Alexion ( $ALXN ) and does what you think it’s going to do, go ahead and add to that winning position. Any questions? Free Chart