MagicQuote2014's  Instablog

Send Message
Overriding philosophy: My orientation is that of a swing trader, intent on converting perceptions to profit. 1.Over 3 decades as a market observer and and independent trader. 2.Trained in investment banking, currently a private investor 3. I believe market volume and price interact similar to... More
My company:
MagicQuote Insurance Services
  • Mannkind's FDA Advisory Board Approval And Current Market Dynamics Effecting The Stock Price 3 comments
    Apr 1, 2014 6:30 PM

    Given the FDA advisory guidance and the current market dynamics surrounding $MNKD tomorrow's market price action will be fascinating for interested parties. It should be a classic lesson in market behavior in the face of a short squeeze.

    1. Current Market # of current outstanding shares is 360 million with a float

    of 227.5 million shares $MNKD Mannkind Corporation, yahoo statistics

    1. Current percentage of float is approximately 41 % with 63 million shares short with average trade volume of 6.3 million shares daily. Nasdaq Short Interest Report
    1. With 18% of institutions and 46% insider holdings reducing the float to a smaller size than normal for a company with this market capitalization of 1.45 billion, the creation of a vacuum with 10 days of outstanding shorts as of close on March 31, 2014 reported.
    2. In a strict sense, there is no such thing as a total short vacuum that will force a stock price up -as there will be some sellers tomorrow. However, the one-sidedness of available stock combined with the news release of the FDA advisory panels approval will cause market instability that bears close watching tomorrow.

    "The FDA's advisory committee voted 13-1 to recommend Affrezza be given marketing approval for treating type 1 diabetes, and 14-0 for treating type 2 diabetes. The PDUFA date for the FDA to complete its review of Afrezza is set for April 15."

    1. You might consider using tested technical indicators to watch the market fluctuations if you are long the stock or options and want to maximize your profits.
    2. Look for double topping action as a sign the panic on the part of shorts has abated. Do not sell on the first huge spike up, and do not be afraid of the first pullback.
    3. Look for the comparative volume on the up moves versus the down moves.
    4. You might use the Chaikin Money Flow indicator in order to assist you in calculating the actual flow of buying and selling that goes on in an intraday period.
    5. Use the MACD (Moving Average Convergence Divergence) indicator to see if your relative price moves over different period of times moves up or down 12-26-9 crossovers are generally used as typical settings.
    6. You might also use Alexander Elder's Impulse system, which is a price indicator similar to HLC or like Candlesticks indicates with a color system that an exponential moving average (usually set at 13), and the MACD (again normal setting 12-16-9) are in synchronization. If both are going up your chart will show Green. If both are going down it will be red, which is a signal that bears are temporarily in control. If your chart is Blue it means that the market is in some period of struggle for control by buyers and sellers.

    Good Luck Traders. MQ

Back To MagicQuote2014's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (3)
Track new comments
  • Growfast
    , contributor
    Comments (295) | Send Message


    Thanks for the article. Helpful guidance on the technical, but I think MNKD still has some fundamental catalysts ahead that make it worth riding the volatility for a while. But, right on the money for the shorter-term trading view.
    1 Apr 2014, 08:18 PM Reply Like
  • MagicQuote2014
    , contributor
    Comments (76) | Send Message
    Author’s reply » HI Grow: As I have always felt, I do not judge any time horizon from one day to 10 years for any trader or investor, whether for myself or others. I do maintain that it is better to know than not know about the movement of the wave that you are riding.
    Take Care,
    1 Apr 2014, 09:32 PM Reply Like
  • 7huan
    , contributor
    Comments (34) | Send Message
    Thanks for the article. Things are dropping as I type this. There will surely be more dips and profit taking.
    2 Apr 2014, 02:27 AM Reply Like
Full index of posts »
Latest Followers


More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.