Big Breakout on a Fast Growing Biotech
We just had a nice day trade this morning on a young Biotech growth stock with real earnings and added to a larger position on the same stock in our swing trading account.
CORT just crushed estimates after we featured the stock a couple weeks ago. This latest earnings report released last night shows accelerating growth including cash-flow growth.
In the Daily Alert last night we said another good entry point would be a move above $13.30 this morning. The stock reached that point and then quickly surged another 7.5% very quickly this morning. We caught a portion of that move for the day trade and added to our longer-term swing trade at around $13.30.
We thought ILMN would gap high enough to satisfy the requirements in the earnings eruptions day trade strategy. However, it did not gap high enough by the open.
I jumped in, though, not seeing that the gap was not enough by mistake. I closed the trade for about a 1% profit after recognizing that the gap was too weak. I later cashed in about 2% on the day trade on CORT while adding to the swing trade.
I was watching AAOI for a long day trade this morning but it did not break the pre-market highs as we talked about this morning and it pulled back with the rest of the market.
We have been talking about the pullback you normally see in late July and early August. And it continues to play out. Here is a review on how we made good money on a tough day for most long traders playing elite earnings beats.
The first video goes over what we were looking at before the bell. The 2nd video reviews the trades we took and did not take and explains why.