Want the exact trade on Exact Sciences (EXAS)? Here it is. (January 08, 2018)


I want to talk about Exact Sciences ( NASDAQ: EXAS ) today. At one point the stock fell about 16 percent, it has certainly closed off its lows. I want to look at this and here is why: Jim Cramer is hosting the CEO of this company on Mad Money tonight because he thinks the company got a bad rap; they want to clarify some things etcetera, etcetera.

Now, to be perfectly honest with you I don’t even know what the news is and I don’t have to know what the news is because this volume tells me everything I need to know. Institutions were selling this stock, 7.6 million shares were traded. The average volume on the 20-day moving average of volume is less than 2 million. This stock was really under pressure and it is by institutions as well. So, frankly, Jim may have a great interview with this guy. I don’t know what the heck it is going to be, I don’t care either.

This is what I know: This is where the stock peaked, right up here. This volume here on this move higher, this was less than this volume here. So what that is telling me is, there are a heck of a lot of buyers right in here. You have got to think maybe some of them are still buying this stock. Everybody that bought up here is a loser. People don’t like to lose, ESPECIALLY in this market. There are so many stocks that are SCREAMING higher. Who wants to own exact sciences? In my view, exactly nobody other than people who just don’t really care about the chart.

I am looking at the chart and I see all of this supply, massive supply from traders who bought anticipating this move higher; right there. It looks like a pretty nice move. Now we get this kind of thing. I would tell you this: Go ahead and watch Mad Money tonight (you always learn a lot on that show), go ahead and watch Mad Money tonight and see how it trades. If it hits this $55.00, which was the intraday high, you can even look down at 54.33, which is where it opened.

My strong suspicion would be that if the stock trades up that high, that is a big if by the way; if it trades up this high I think it is going to be sold into. If it doesn’t trade up that high then it is DEFINITELY being sold into and you don’t want to be long.

So either way I am just telling you, I look at this as really, really risky long. We look at the weekly chart, the stock is up, that’s fine. But again, this was kind of a blow off here and now the stock is just kind of repairing itself. The thing is, we want to buy as low as we can to support. I don’t see $50.00 as support. So I would stand clear of this. Watch and see how it trades. If nothing else you are going to learn quite a bit about trading.

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