1. NBIX: Gap Up Continuation Long on
News Catalyst SIP
Clayton Yee
01/07/2014

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3. NBIX
• ADV: 683K (below 1M, but premarket already
traded over 1M shares)
• ATR: 0.35
• SF: 6%
• Sector: Healthcare, Drug Manufacturers

4. Big Picture
•
•
•
•
1st three 2014 trading days ES down
Overnight, grind up, back in middle of 2014 range.
1833 was last weak S and 2014 R; 1818 YL, 2014 L
This is not a market play. Based on news catalyst.

5. Intraday Fundamentals
• Yesterday, after the close, NBIX announced
good clinical trial results for one of their
drugs.
• The company has no products yet.
• Steve tweeted yesterday to keep an eye on
this today
• On premarket most active list

6. Technical Analysis
•
•
Overnight gap: YC 9.76 pre-market open 16
Pre market, holding VWAP since 09:00

7. Reading the Tape
• Since 08:25, grinding up
• 09:27, held bid at 15.35 dropped, but stock
went up
• 10:19, pullback test (16.10) of opening drive
H (16.13) was a place I considered adding

8. Trade Management

9. Trade Review
• What went well
– Identified SIP, levels and setup
– I actually did a better job sitting with my anxiety and discomfort than in the past and am
continuing to improve
• Areas of improvement
– Be more patient for better risk-reward on initial entry
•
If decide to do a feeler, start with small size
– Improve holding for a reason2sell, being nervous and anxious is not one of them.
•
A trend line break was one possibility in this trade
– I am working on holding a core position. I am too easily spooked out.
– I had noted the opening drive H level (16.13) as a intraday key level. Once we broke
above and held, that was a place to consider adding.
– ATH 16.73 break was also a place to look for adding.

10. Next Trade
• Watch for continued follow through the next
day and see if today’s levels act as support.