This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks Showing Relative Strength in a Weak Market

Pharmacyclics

One more stock that's displaying relative strength today is Pharmacyclics (PCYC - Get Report), a clinical-stage biopharmaceutical company focused on developing and commercializing small-molecule drugs for the treatment of cancer and immune mediated diseases. This is a market leading stock, with shares up over 98% so far in 2011.

It looks like traders continue to jump into this stock ahead of a key data releases and clinical/regulatory updates at the American Society of Hematology in December. RBC Capital recently said it expects Pharmacyclics to report positive data on two of its drugs; RBC has a $15 price target on the stock.

If you look at the chart for Pharmacyclics, you'll see that this stock is quickly approaching a major near-term breakout if it can manage to move above $12.19 a share. A move above that near-term overhead resistance with strong volume should be viewed bullish by market-players. Traders should look for a volume move above that level that clocks in at close to or over its three-month average action of 772,000 shares.

At last check, this stock was down 5 cents at $11.81 after showing some great relative strength earlier in the day, with shares gaining 2.5% to 12.16. Once could buy this stock off any weakness in anticipation of a breakout over $12.19. I would add aggressively to any long position once the stock takes out its 52-week high of $13.09. I would use a stop just below $11 a share, which is an important near-term support zone, or simply use a stop that's not far below where you get long depending on your risk tolerance.

The current short interest as a percentage of the float for Pharmacylcis is a rather large 8.7%. It's also worth mentioning that the bears have been increasing their bets from the last reporting period by 6.7%, or about 243,400 shares. If this stock breaks out in the coming days or weeks, then the shorts are going to be under pressure to cover their bets to avoid any more losses. I recently featured the stock in " 5 Heavily Shorted Stocks That Could Pop."

To see more stocks that are displaying relative strength in this red tape, including ICF International (ICFI), Amicus Therapeutics (FOLD) and Range Resources (RRC), check out the Relative Strength Stock Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Submit an article to us!
SYM TRADE IT LAST %CHG
CADX $0.00 0.00%
WCRX $0.00 0.00%
MNTA $19.07 4.90%
NFLX $554.97 -0.37%
PCYC $254.75 0.09%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs