Blue Horseshoe Stocks: DMTX Review, Options & More

Dimension Therapeutics, Inc. DMTX

We alerted on DMTX after a sizable gap-up few weeks back on the morning of August 25th. That day we would observe a low of 2.90 in the stock, and it never looked back.

Throughout the month of September the stock has mostly been stair-stepping its way up in steady fashion, but news of an unsolicited buyout offer (@5.50/share) kicked this play into a much higher gear to start things off this week, and yesterday DMTX attained a high of 5.90.

That works out to a three-week double-bag swing of 103% We wouldn’t expect to see the stock travel much higher, certainly not without confirmation or further details on a proposal, but will still keep our eyes open for further activity after a very strong session yesterday.


Fresh Options Ideas

We’ve got a pair of options possibilities¬† to present this morning. Yesterday’s market sentiment was exceedingly bullish, with more than 65% of NASDAQ quoted stocks trading at or above their 50-day moving averages.

Today, better than expected numbers on Housing Starts and Building Permits were reported, which could assist in keeping the momentum moving.

SPDR S&P500 ETF (SPY) – For a direct market analog, we generally turn to the SPY, having had immense success with it on several separate occasions in the past. We’re going to signal the SPY Weekly $249.50 & $250 Calls for observation as we approach midweek.
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The Kroger Co. KR – We’re also noticing a heck of a bottom setup on KR. A strong multiple bottom signal showing the stock at a solid support level, and a couple of gaps to the upside on the chart leaves us looking at a pair of longer-term contracts. We’re going to place the KR 11/17 $23 & $24 Calls on watch in the event of a recovery for Kroger.


Extended Watchlist:
STAF, CAPR, MRTX, NTEC, NBRV, RNVA, AGTC

Blue Horseshoe Stocks: MRTX Recap & More

 Mirati Therapeutics, Inc. MRTX

After reporting positive cancer trial results on Friday, we talked about MRTX being poised for a big move and we weren’t incorrect.

The stock exploded out of the gate right from the outset, and traded in an impressive range from 9.15 to 12.40 early on in the day. That was good for a 35% intraday run- excellent for a $9+ stock. This is the third time in as many weeks we’ve called a stock that was approaching the ten dollar range and saw it gain more than a third in value in a single session.

Not only did MRTX trade up big on many times more thanits average volume, but it managed to maintain well over half of its daily advance, so we’ll be interested to continue monitoring its activity as we kick off a fresh trading week.


Iconic Brands, Inc. ICNB

We want to place ICNB on bottom-watch after taking a look at the recent history of the chart. This stock exhibits some really nice volatility and is coming down off of a significant spike.

When it finds support and rebounds, we could see a notable swing trade opportunity. The last such swing took the stock from the .003 range to .014.

The company recently announced its brand of Prosecco endorsed by former supermodel Christie Brinkley would be carried by Publix stores, so we’ll also be looking for further updates on that part of the story as well.


Pluristem Therapeutics, Inc. PSTI

We tagged PSTI for observation roughly a month ago, and have since seen a moderate move up on the chart, and will want to continue monitoring the situation.

The run the stock has made thus far is a marginal 27%, but things this morning have taken an interesting turn as the company announced the FDA granted fast track status to one of its treatments.


Extended Watchlist:
RAD, ADYN, NBRV, ARWR, PTIE, BIOA, MBOT, TRXC, COGT

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