Market Wrapup

What a boring day compared to yesterday. It would have been more productive to nap honestly than trade today. I was relatively flat in my trading account and up a tad in my other 2 accounts (long books). I sadly sold the last 25% of my GNK today but it just got too hot and I had to cut it. GME sold off today which pissed me off. I should have some profits in it yesterday but didn't. Keep in mind that the 3/4Q estimates have price cuts factored in the EPS. If SNE doesn't cut prices, GME probably will not make their half year. Therefore, without price cuts, GME is probably worth no more than $26. However, we should get prices and if so, and they hit numbers and show growth, it's worth $29-$33. FTK did well today and seems like it wants to go higher. I still think we are going higher on the name.

Now I want to address a particularly bio stock, ADLS. I didn't own this but I know many hot traders where in it today and got LIT up. This is why biotech is dangerous and frankly the SEC is totally asleep. My sources tell me there was a conference today and no news was released (it just was released at 6pm). However, at 1:45p there was a monster selll off from a $1.40 to $.30 in 2 minutes. In my view, two things happened:

1. A hedge fund put a monster short position on, tipped an analyst $250,000 grand to spread a rumor, caused a selloff and the hedge fund made a quick 60% day trade. Some newbies to trading need to know this garbage goes on and I hate it. Some hedge funds trade like 5 days a year and make their year in one day. This could have happened and analyst integrity is another issue I will blog about another day but unfortunately stuff like this goes on. The reason I do this trading blog for free and post research is to help the average retail investor out, so you can make some money and enjoy life. However, there are many crooks who don't care about anyone but their commission fees and yearly returns and will do anything to make it...I mean ANYTHING.

2. The other option is that some one leaked the test results and it got to a major hedge and they blew out of the position (or put the short position on before and then boom it hit).

I DO NOT know if either of these two things happened but I wouldn't be surprised.

Now to my biotech basket. I WARN YOU THAT THESE STOCKS CAN FALL 60% IN A SECOND, JUST LIKE ADLS. However, I will also say this. If I thought I would lose, I wouldn't buy it, I'm not a dumbass. I mean I know I could lose the 60% in a day that why I play it small; however, I research it out and I know a great biotech trader and talk the stocks out with him. I have BDSI and I'm up a $1 so far and for NEPH I am up about .10 cents but I am holding both. BDSI should have an approval in 2 weeks and NEPH should be anyday.