When it comes to finding stocks that are more likely to go up than down, nobody has a crystal ball. What we do have, however, is evidence that we can weigh, compare and, if necessary, massage — but only a little. I liken chart analysis to a judging a civil trial in the courts. We look for a preponderance of evidence to make our judgment to buy, sell or hold, and right now I see a good case to buy Tesaro (NASDAQ: TSRO). Tesaro is an oncology-focused biopharmaceutical company, and that is its first bit of evidence. Biotech… Read More
When it comes to finding stocks that are more likely to go up than down, nobody has a crystal ball. What we do have, however, is evidence that we can weigh, compare and, if necessary, massage — but only a little. I liken chart analysis to a judging a civil trial in the courts. We look for a preponderance of evidence to make our judgment to buy, sell or hold, and right now I see a good case to buy Tesaro (NASDAQ: TSRO). Tesaro is an oncology-focused biopharmaceutical company, and that is its first bit of evidence. Biotech as a sector is beating the market and in fairly good shape. A strong sector is a big part of a stock’s strength, so this goes in the plus column. The next is the big picture. Since peaking in June of last year, roughly a year after it began trading as a public company, the stock eased lower for many months. Weekly charts show a clear declining trendline from that time and a somewhat less clear parallel channel guiding it lower. This is not a positive on its own, but it does leave us with a good trigger for the… Read More