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If you’re waking up every Monday morning in a rush… trying to find just the right play that will put you in a position to find money-making opportunities… but come up short, I’ve got the perfect solution for you — biotech stocks.
Why biotechs?
Well, that’s my bread-and-butter sector — the one where I know I will always come out on top.
More importantly, these stocks don’t care what the market is doing.
Just take a look at some of the top-performing biotech stocks on Friday…
Source: Finviz
… all when the market was selling off!
I was able to spot the VTGN (the fourth top biotech performer on Friday).
Of course, there is a method to find these plays… and I want to show you that before the start of trading tomorrow, and provide you with some biotechs that I think could explode very soon.
There’s a slew of monster catalyst plays coming up…
The thing that I like most about biotech stocks is the fact that they’re “predictable”. Basically, there is a specific pattern that I see pop up all the time.
First, I look for an upcoming catalyst event — nothing too difficult, just looking at an upcoming calendar. Here’s a look at BioPharmCatalyst, one of the tools I use to look for biotech stocks.
If I see a juicy upcoming catalyst, I pair it with a bullish chart pattern.
You can do these steps interchangeably. Sometimes, I’ll filter for biotech stocks and look for a bullish setup first, then I’ll see if there’s a catalyst coming up.
Sounds simple, right?
It is… and let me show you, by walking you through some of the biotech stocks I’m keeping an eye on.
Lipocine Inc. (LPCN)
Check out the daily chart in LPCN below.
Source: Finviz
If you notice, this is the second time the stock formed a flag pattern… and it goes you show how well bullish chart patterns work in biotechs.
The thing that interests me the most is the upcoming catalyst event. LPCN has a PDUFA date in a couple of weeks… and that event is one of the strongest catalysts for a biotech stock.
This is going to be a play to keep an eye on for the catalyst runup. Remember, I’m looking to hold these for a 1-4 weeks, but not into the event.
Nuvectra Corporation (NVTR)
NVTR is a little bit different from LPCN.
Basically, this is a post-catalyst play.
Back in April, negative news came out about this request. Back then, the stock traded at $9.40 a share and has fallen to below $2 since.
So, this should satisfy that bad news that came out prior, which is great news for this company.
Now, I’m not expecting a $9 move today — that’s crazy! But, I do think a nice move can be in the works.
NVTR had a massive move Friday… and I’ll be watching that for strength tomorrow, but it’ll be a quick short-term momentum play if I do decide to get in.
These are just 2 of the many biotechs I’m watching right now. If you want to receive all my detailed trading plans, weekly watchlists, as well as real-time alerts… then you’ll want to check this out because I believe there are going to be a flood of catalyst plays coming out very soon.
[Ed.note: Kyle Dennis runs BiotechBreakouts.com. He is an event-based trader, who prefers low-priced and small-cap biotech stocks.Source: BiotechBreakouts.com | Original Link