Wednesday, April 2, 2008

Getting into VRTX too late?

I'm wanting about 100 shares of VRTX @ market ($25.41 for now), but it's had a meteoric gain over the past two days and I wonder to myself if it's still going to gain just a bit more over the next two days on cheery news about it's Hep-C drug trials. Fool had a powerful article on it and there's lots of other chatter, but it may very well be at the very peak of its gain for now.

The real question: is it overbought and will it correct abruptly tomorrow? Or will it continue its breakout and settle down a bit later?

I'm hoping for the latter and I think it'll level or dip just a little if nothing else; I don't see it collapsing all at once or anything, so if it's another low-loss RedHat to hedge what I think is a decent shot, then I'm willing to take that. I can add a stop @ 22 or something, but we'll see if that's necessary.

Preemptive lesson: stop buying at the peak of a breakout momentum play on old news.

Also, RedHat jumped 8% today. Shucks. The other question: market or pre-market? Probably sleeping in and letting it ride. Let's see what happens.

No comments: