Each week at ChartSmarter we like to bring to a little insight into what we do on a daily basis. We have been at it for 5 years and we love doing it. Each night we detail 7 to 8 of our favorite ideas, both long and short, for the next days session. We do NOT have a chat room, nor are we active “tweeters”. We like our business growing by word of mouth. For those who would like to see a full copy of our Monday Game Plan, email me at email@example.com.
In our Thursday 6/18 Game Plan we looked at PCRX which was not participating in the overall healthcare rally, often a red flag. The stock is currently down 30% YTD and is mired in an ugly 6 week losing streak. We suggested a short back one month ago at 79 and the stock has plummeted more than 17 handle since.
PCRX is a lagging pharma play off 37% from all time highs made it late February. It is lower by 13% YTD and 6% over last one year period. 3 of its last 4 earnings reports have declined, not the consistency you want to see, by 16.7, 2.5 and 13.9% on 4/30, 2/24 and 10/30 (it rose 4.7% on 7/31). The February report recorded a bearish engulfing candle which engulfed the prior sessions negative shooting star at all time highs. PCRX did attempt to make a stand rising 4 of 5 weeks between the weeks ending 5/8-6/5 jumping 15%, but did so on light trade and was halted right at the 50 day SMA. It has also encountered trouble with the round 80 number. Short at 50 day SMA at 79.