The Low - Down on biotech. let's look at ibb myl celg and gild - December 05, 2013

I just want to go over some biotech stuff today because these are still working. We're not at a good entry point right now. We'll just draw some lines, pretty solid resistance, at these peaks. If we just look at this as a quote, "supply line," you'll see where supply is, it's right there. On the other hand we just kind of draw a loose demand line, or support line, and here's really where the demand is; you can say really, around the 50-day moving average, the red line. So as I look at this I see this is the best buy point, somewhere around here, this is the index. So if you're watching various biotech stocks you want to be looking at the IBB ( NASDAQ:IBB ). If that pulls back to this level then you look and say, "Okay, the entire sector, as measured by this index, the entire sector is at a pretty good buy point, let me see what I can see." So then from there you go to various stocks and you look. Okay, Mylan ( NASDAQ:MYL ), still too high. Do you buy it here? Well not when the IBB ( IBB ( NASDAQ:IBB ) is looking okay, but it's not at a great buy point. Mylan ( NASDAQ:MYL ) is pretty extended; there's nothing wrong with the uptrend, if I had to choose between buying and selling I would absolutely buy. Look at the uptrend, do you really look at this and say, this is the absolute top, this is it, the stocks not going another tick higher so I cannot buy this stock? No, but from a pure timing standpoint right now you've got to hope for a little bit lower price on Mylan ( NASDAQ:MYL ). You make your money by buying a stock right. If you're not buying it right you can have a difficult time. Celgene ( NASDAQ:CELG ), this stocks been in consolidation for a while, we'll just draw a box around here. It's been consolidating, but what's really happening here? Well, it came down below the 50-day moving average, but generally speaking when it'*** this level, it's bounced. Celgene ( NASDAQ:CELG ) here, looks like it moves higher. So is this the time to absolutely be buying this stock? We'll go out to the weekly chart again and say, "Okay no, I don't want to." Why? "Because I think this is it, 165.00, that's all the stock goes, I'm declaring that this uptrend is officially over right now;" the stock moves down. Maybe you'll be right, good luck with that. The bottom line is this is consolidating a little bit. But as I look at this, because I see the way this stock has oscillated before, I would say the chances of this hitting 160.00 before it hits 170.00 are probably pretty good. But I would also say that the chance of it hitting 160.00 and 170.00 in the future are also pretty good. So you can just draw the box here, where do you want to buy the stock? I draw these boxes all the time it's almost like I'm an artist only I can't draw. But look to buy at the bottom of the box on an uptrending stock. It doesn't really get that much more difficult than that. And then the last one is Gilead ( NASDAQ:GILD ), which looks a lot like Celgene ( NASDAQ:CELG ), kind of the same chart. So what are you going to do? You do pretty much the same thing. The stock falls back closer to the 50-day moving average, that is a better time to buy the stock. Should you buy it? Well sure; again, is this the end the trend right here at 75.43; that's the highest this stock goes. You don't get to make that determination; the stock is going to make that determination for you. On up trending stocks you just want to be buying at the demand line; right here where when the stock pulls back, that's where the demand is. So you use this little trick, not really a trick it's just a way of looking at charts. I promise you you're going to make more money because you're going to make better entries, and you're going to take smaller losses. You're going to take losses, sorry, that's why they call it trading not money collecting, you're going to take losses, but they're going to be smaller if you buy the stock right.