The stock market has been correlating biotech stock prices with the slide in oil for some strange reason the past two weeks. We felt the slaughter in biotech was unwarranted so we got back into names we were very familiar with. One example was $DEPO (Depomed stock). We swung this position for a couple months before as seen here:
$DEPO stock was trading less than 2x 2016 revenues making it a bargain. As the biotech index starting to squeeze back higher today, we slowly exited the position as one of our trading philosophies is to sell into strength. $DEPO was +15% for the day when we sold our last shares. We would have loved to have held the swing position for more gains but when a stock is +15% for the day when the Dow Jones Industrials are down -500 for the day, you have to just sell it all and take profits.
Net profit of $14,276 for a two week swing!