Biotechnology Stocks Seeing Price Momentum Right Now The tone of the stock market has certainly improved over the last few weeks, although investor sentiment is still down due to the uncertainty surrounding the fiscal cliff. Liquidity is a lot less robust than it used to be, but speculators can still trade off events and momentum. One biotechnology stock that looks like it has some new upward momentum on the stock market is Alexza Pharmaceuticals, Inc. (NASDAQ/ALXA). This biotechnology stock is way down from its previous highs, and there’s now some bottom-fishing going on among speculators. The company has a good following among Street analysts, and trading volume recently spiked. It’s very difficult getting into biotechnology stocks in the hopes of catching a major FDA approval or a new medical discovery. But, as a stock market speculator, you can play the momentum afterwards. Major moves in share prices and trading volume are great indicators, and individual investors can easily sift through this information on a daily basis.Alexza’s stock market chart is featured below:
Chart courtesy of www.StockCharts.com Biotechnology stocks remain one of the stock market’s hottest sectors (which certainly is relative these days). The NASDAQ Biotechnology Index is the benchmark for the industry, and it recently staged a very impressive rally after its price correction. This index is where you want to be looking for new biotechnology stocks to trade. Another biotechnology stock to keep an eye on is Cerus Corporation (NASDAQ/CERS), which is a company I featured in this column a couple of weeks ago. This company is in the process of commercializing its “INTERCEPT Blood System,” which is designed to improve blood safety. The company is methodical in building its business, working with customers to set up its blood testing systems, and keeping the stock market well-informed about its corporate developments. The stock recently staged a nice recovery, and I think has further momentum over the near term. Cerus’ stock market chart is below:
Chart courtesy of www.StockCharts.com Thereâ€™s a reticence to the broader stock market, and the S&P 500 Index seems stuck in a trading range. Speculating in gold, silver, and oil stocks is now a lot more difficult because underlying commodity prices are experiencing a consolidation of their own. Thatâ€™s why biotechnology stocks are relatively attractive in this slow growth market. They have the liquidity, price momentum (both up and down) and institutional investors love to participate in the sector. The stock market has good potential to advance in January as expectations for corporate earnings rise. Both Alexza Pharmaceuticals and Cerus are junior biotechnology stocks to keep an eye on right now. There is a lot of opportunity within the biotechnology sector these days, which is one of the few in the stock market currently experiencing upward price momentum.
Source: Penny Stock Detectives