Objective Forex: Trading Week 5/1/16

Sunday, May 1, 2016

Trading Week 5/1/16

We continue the streak of stock gains with the close of this month, with particularly impressive action stemming from AREX netting about 40%+ over the week.

Our USDJPY play was disrupted by the BOJ policy announcement, we cautioned against a drop and hopefully if you had a position you used a well placed stop-loss.

Forex Play

We're looking at a solid play with a long GBPUSD on market open, please be aware that there is data being released on Monday which will add volatility. 1.400 looks to be a solid accumulation/support zone.

LONG GBPUSD at 1.46

Stock Picks This Week

RXDX (Ignyta) A strong biotech that has had interesting action the last month pulsing from $7 to over $8 a share, with 75% institutional ownership and having reached a high of $19.40 last year we see stable growth here. In addition short term investing and cash is at an all time high and this company is clearly on the right path.
Buy under $7.00

ALQA (Alliqua BioMedical) Another hidden biotech specializing in wound care that began the year at $2.00 a share, despite increasing revenues year over year it was beaten down to an all time low of $0.70 before buyers rushed in. Last week ALQA sported an impressive run from $0.75 up to $1.10 and we presume more and more institutions are dipping their feet into this one.

Buy under $0.85 

BPMX (BioPharmX) Yet another biotech as we keep finding hidden value in this sector right now. This stock has been very quiet until recently developing specific pain relief tablets, we see this current price as the ground floor level. Over the last week it was pinned at around $0.95-$1.00 before dropping to $0.79 in just a 4 day period, however at this level volume has increased substantially. We expect exciting announcements in the future for this one.

Buy under $0.75

NRX (NephroGenex) Our final biotech for this week, and this one fits the high risk high reward bill. This stock has had very interesting action last trading cycle. Trading around $0.40 and jumping almost 80% in one day nearing $1.00 a share before crashing back down to regular levels the next day, mostly due to the company canceling development of it's primary kidney disease treatment option, this trail ended up being far to expensive for the company and subsequently have postponed research, they have hired bankers as they reevaluate strategy and their business plan, with a reasonable amount of cash on hand we see a possible turn around breakout but be aware they may conduct reverse splits and other fund raising techniques that could pressure the share price.

(Caution, Chapter 11 filed before open 5/2/16)

Buy under $0.40

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