DELAFIELD, Wis. (Stockpickr) -- I love trading the biotech sector. When this sector is in play, it offers traders the opportunity to capture some big moves over very short timeframes.
Until you've seen it and traded it, you just don't know how quickly profits can come when you find the right opportunities in the biotech complex. Of course, most traders are completely turned off by biotech stocks right now since the entire sector has been under heavy selling pressure -- but that selling pressure might be ready to come to an end in the short-term. The iShares Nasdaq Biotechnology Index ETF (IBB) has started to bounce higher right above its 200-day moving average of $218.83 a share. Shares of the IBB are currently trading at $232 a share, or up 2.9% on the day.
Since this bounce is occurring right above a key technical level -- one that's watched by traders and, more important, by longer-term investors -- the biotech sector could be due for a sharp recovery rally in the short-term. This could be the perfect time to start hunting the biotech complex for names that are not only looking decent from a technical standpoint but also have a major catalyst on the horizon.
One development-stage biopharmaceutical stock that's hitting my scans here is Catalyst Pharmaceutical Partners (CPRX), which focuses on the development and commercialization of novel prescription drugs targeting rare (orphan) neuromuscular and neurological diseases and disorders. Some of the diseases Catalyst is trying to fight are Lambert-Eaton Myasthenic Syndrome, infantile spasms and Tourette's disorder. Despite the major selloff recently in the biotech sector, this stock is actually up so far in 2014, by 16%.