As complacency washes over me, I am beginning a 2.1% stake in Human Genome Sciences (HGSI) as the stock crosses the $30 threshold; this stock was highlighted late yesterday. This is a buy completely for technical reasons, as the chart is almost a direct mirror of the S&P 500... a very long base, from which the assumption is a breakout shall ensue. Stop loss will be placed slightly below the blue line (20 day moving average) although $27 has been a good floor during the base building of November & December. If the stock starts breaking out i.e. $31+, I'll add more.
EDIT 12:35 PM - I added more exposure in mid $30's, as the computers have picked up what I have flagged... the stock looks strong. Will add more on a break over $31.
Please note my comments from yesterday:
Let me offer a word of warning; I stay away from biotech stocks as a rule since they are mostly lottery tickets unless you are talking some of the huge names like Amgen (NASDAQ:AMGN) or Gilead (NASDAQ:GILD) for example. I will generally make a foray into biotech every 12-18 months when I get very overconfidant, the market is "way too easy" (as it is now - just buy almost anything and you'll make money sooner or later), or I'm just plain bored and want some spice in the portfolio. Within a short period of my biotech purchase, invariably either the stock crashes or the market does. ;) So as I am pondering this name, take that into consideration.