NLNK- I was watching this stock when it was near 8.15 for a breakout, but failed and never happened. Now it gaped up huge on news of improved response rate to cancer in a Phase 2 clinical study. This is great news, but I think it is hyped up a little, and the odds are not on the companies side. My research on clinical trial studies says about 30% of phase 2 make it to phase 3. So while phase 2 news is good there is still a long was to go and it wont happen overnight. I feel that people hyped this up today and it went on the biggest run it ever had; it should have some pullback before deciding to go higher or lower. I care more about the price action than news. I will be looking for a gap down to short and risk R/G. I will be cautious because I know nothing about this science and what is really good or bad, so I will pay close attention to the price action and make sure to cut losses quickly. It is also a Friday and 20% of the float is short so it might be a good idea to just watch, but if the action is perfect it is a potential play.
DRYS- This beaten down stock is bouncing off of its lows a little bit. It is approaching heavy daily resistance at the $3 area. My play would be to short a straight up morning spike and short once it seems like its topping and use that $3 as my risk. I know this stock has potential to really squeeze out shorts so be very very careful with DRYS. If risk level is breached do not be stubborn and hold, get out.
AVEO- Recently this chart has been looking bullish. It had a nice spike today, and closed well. If this stock can slowly uptrend tomorrow during the day and breakout of the $4.24, 1 year high I will consider a long, but I will not long a quick spike past that level. Reason being is that todays move plus a spike tomorrow will make it too overextended for me. I will be looking for that steady break with a good intraday support level to risk off of.
XOMA- Has been on a crazy run from about $11 to $19 on good news. The news is good,but this price action is so overextended for the recent chart history. I will try to short a quick pullback in the morning on a gap down and risk R/G. This has a low float and decent short interest so I will not be any hurry to short. I will be patient, and if it holds its gains and heads higher I will just watch.
Most of these plays are short biased. Keep in mind tomorrow is Friday so shorts might want to cover before the weekend so do not overstay in any short play, take profits when you have them and cut losses at your risk level. Also pay attention to the overall market to see how stocks might react.