Blue Horseshoe Stocks: AXN, JDST Recaps & More


Aoxing Pharmaceutical Co. Inc. AXN

AXN emerged as one of the day’s most interesting plays following its inclusion in Friday morning’s premarket report. After briefly touching an early morning low of 1.15, the stock would go on to register a subsequent high of 1.63.

That works out to an intraday increase of 42%, and it came on roughly fourteen times the three-month average volume.

After a fairly strong close (1.49) in which the stock held well over half of its daily gains, AXN appears to be gapping up slightly this morning, having risen back into the 1.50’s. This type of activity is characteristic of a classic “momo play”, so we’ll have an eye peeled for AXN as things kick off today to watch for a possible continuation of that momentum.

Pervasip Corp. PVSP

When PVSP appeared in one of our daily reports in late January, we referred to it as a super-subpenny ‘bottom-bouncer’, and it has held to that description in the truest sense over the past several weeks. Less than two weeks ago, the stock was trading at the lowest possible increment (.0001), and toward the end of last week it began to ramp its way up.

On Friday, there was a Golden Cross of the 50DMA over the 200DMA, and PVSP traded as high as .0009, which marks a rapid jump of 800% over our recently observed low. In order for us to remain interested in this play, it will need to maintain support at or above .0005 on any pullbacks.

Direxion Daily Jr Gld Mnrs Bear 3X ETF (JDST)

JDST made a modest yet notable move on Friday as well., This one also appeared on our extended watchlist, and we were pleased with its steady uptrend that lasted  throughout most of the morning.

From an initial low of 11.40, the stock pushed its way to 12.60, a gain of 12%

Being a gold miners bear ETF, JDST saw this increase as the release of healthy jobs numbers and the Dollar at an 11-year high coincided closely with gold nearing a three-month low.

Extended Watchlist:
GEVO, AVEO, LBIO, OPXA, CTIC

Blue Horseshoe Stocks: New Options Idea & More

Vivint Solar, Inc. VSLR – Options Idea

VSLR caught our eye yesterday as the stock made considerable progress in coming off of a recent bottom, aided by Q4 financials announced Wednesday, post-market which came in better-than-expected.

In the midst of this rebound, we’ll be looking to possibly take advantage via the options chain. Currently, we’re interested in following the activity on the April 17th $11 Calls (Last Trade:1.30).

VSLR has a 1-year analyst estimated price target of 19.80, and is presently trading well below that range, thus it could turn out to be a stock that we continue to track over an extended period of time.

AVEO Pharmaceuticals, Inc. AVEO

We’re watching AVEO this morning; the stock broke above its 200DMA earlier this week and has been holding support above that level. Yesterday it underwent a gap-and-fade, ultimately finding support at 1.36. and that’s the level we’ll want to see it maintain on any further pullbacks today.

The main thing drawing our attention toward AVEO is the current chart setup.As you can see on the snapshot below, it is showing a strong RSI, a bullish MACD, and appears to be building toward an elusive Golden Cross; a relatively rare event for which we’re always keeping our eyes peeled.

Extended Watchlist:
ASTI, JDST, CRMD, MSO, AXN, GALE

Blue Horseshoe Stocks: Options Review & More

Yesterday’s Options Ideas

The options ideas contained in yesterday’s premarket report ended up performing extremely well for us, further outlining why we focus so often on options trading.  

For American Eagle Outfitters, Inc. AEO, we were interested in $15-16 Weekly Calls after noticing its earnings beat, and we met with possible gains in all cases:

-The $15 Calls traded as low as .80 before hitting a high of 1.25, a gain of 56%

-The 15.50 Calls traded as low as .30, and hit a subsequent high of .75; an intraday increase of 150%

-The 16$ calls traded as low as .16 and hit a high of .35, which is equal to a 118% move.

Abercrombie & Fitch ANF was trending in the opposite direction, so we ventured a few conservative ideas* for Weekly $23-24 Puts and the stock continued its decline throughout the session, enabling considerable profits:

-The $23 Puts saw a low of .87 low and closed at 2.74 for an impressive 215% run.

-The $23.50’s rose from a 1.20 low and ended up closing at 3.00, marking a 150% jump.

– The $24 Puts went from a 1.53 up as high as 3.84, an intraday gain of 151%

This morning, ANF is continuing its decline in premarket trading, so traders who chose to hold any of these contracts would be up even more than the figures listed here.

*Please note that the contracts we selected, while they obviously did extremely well, were fairly deep into the money so as to play it relatively safe. Traders looking to assume a bit more risk could have chosen to strike outside of the money, and it would have paid off in a big way. For an example, we can refer to the ANF $21 Puts which traded in a range from .10-.90. (+800%).

Infosonics Corp. IFON

After appearing in yesterday’s extended watchlist, IFON rapidly produced a hearty early-morning rip. The stock opened up at 2.34 and ran as high as 3.18 in the first ten minutes of trading! Quick-witted traders could have come away with rapid gains of up to 36%

Extended Watchlist:
EYES, ARWR, ONCY, AVEO, NAVB

Blue Horseshoe Stocks: Pharma Watchlist & More

Lexicon Pharmaceuticals, Inc. LXRX

We’re taking notice of LXRX this morning in the wake of a premarket PR that has the stock trending up to its highest levels of the past three months; it contained updates on current projects as well as increased earnings. The addition of an interesting setup on the chart gives us good reason to place LXRX on watch this mid-week.

As you can see on the snapshot below, the stock gapped down significantly at the end of November. In premarket activity today we’re seeing a partial fill taking place. We’re going to be watching for LXRX to fill the remainder of the gap into the mid 1.20’s where its next area of resistance will come in at the 200DMA of 1.28.

THE WOODLANDS, Texas, March 4, 2015 /PRNewswire/ — Lexicon Pharmaceuticals, Inc. (LXRX), a biopharmaceutical company focused on developing breakthrough treatments for human disease, today updated its drug development progress and reported financial results for the three months and year ended December 31, 2014.>> VIEW PR

Pharmaceutical Watchlist

There are a number of other pharma and biopharma stocks gapping up in the premarket this morning, some of which have appeared in our reports in the past. We’ve listed them below along with links to today’s news, where applicable:

Keryx Biopharmaceuticals, Inc. KERX


Atossa Genetics, Inc. ATOS


Coronado Biosciences, Inc. CNDO

Coronado Biosciences Forms New Subsidiary, Checkpoint Therapeutics, to Develop Novel Immuno-Oncology Antibodies (Wed 8:30AM EST)

PhotoMedex, Inc. PHMD

Orexigen Therapeutics, Inc. OREX

KaloBios Pharmaceuticals, Inc. KBIO

Earnings-Related Options Ideas

American Eagle Outfitters, Inc. AEO beat expected Q4 profits and revenues, and is gapping up as a result. To take advantage of the trend, we are monitoring options trading possibilities in the AEO Weekly $15-16 Calls

Abercrombie & Fitch ANF fell short of expectations with regard to sales, which is fueling a downtrend here in the premarket, so we’ll take the opposite approach here, and keep an eye on ANF Weekly $23-24 Puts.

Extended Watchlist:
IFON, PLUG, NPTN, WLT, LEI

Blue Horseshoe Stocks: ONCY Recap & More

Oncolytics Biotech, Inc. ONCY

ONCY emerged from our extended watchlist and stole the show yesterday with an exceptional intraday run. The stock saw an early morning low of .80 then proceeded to bull its way upward for the remainder of the session, breaking through the 200DMA (.92) and setting its daily high of 1.10 inside of the last hour of trading.

The spike was good for gains of up to 37% on the day, and ONCY held a vast majority of those gains, closing at 1.07. We were extremely pleased with our timing in flagging this play when we did; the strong performance came on more than 12x the 3-month average number of shares traded, setting a new 52-week high for volume in the process.

With the kind of breakout momentum we saw build up in ONCY yesterday, we’re going to continue to reserve a spot for it on our watchlist, provided the stock can maintain support at or above the .85-.87 area on any pullbacks. It’s gapping up in the premarket this morning, so there’s a reasonable chance of some early profit-taking today.

ONCY is currently being given a 88% Overall “Buy” Opinion Rating at BARCHART.COM

Ohr Pharmaceutical, Inc. OHRP

We also wanted to make a note of another of our stated items of interest which made a nice move right off the bat yesterday. OHRP came off of our extended watchlist to trade in a range from 8.55-10.58, a 24% intraday increase.

Volume came in at more 16x the 3-month average for the session. The stock held more than half of its daily advances into the close (9.78), and is gapping up slightly in premarket trading this morning. The stock will receive our continued attention in the event that it can hold support above 9.50.
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Biocept, Inc. BIOC

BIOC began appearing in our reports for the first time back on February 17th via our extended watchlist. Subsequent to that point, we witnessed the stock spike in a big way from a low of 1.35 up to a high of 4.91 just seven sessions later on February 25th; an initial run equal to an increase of 264%

After consolidating off of that high the stock found support at 2.73 on Friday before beginning to rebound. Yesterday brought a continuation of that recovery as BIOC found its way back to 3.94, which marks a 44% swing.

Extended Watchlist:
 MDR, FNJN, AMCO

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