HGSI Human Genome Sciences Another Big Pattern

HGSI Human Genome Sciences appears to be another ‘big pattern’ that could start to evolve into a new move soon, but at this time I have no plans to go long HGSI.  I may change my mind depending on how other big patterns I am watching start to evolve.

Still, HGSI appears to have some promise as a higher priced stock that could start to see a new move out of this big pattern.  Biotech stocks sometimes have the habit of doing large gaps up or down and so that makes this potential big pattern play somewhat more risky and tricky for entry purposes.

Even though HGSI is not part of the Cheetah Trading System at this point, I still wanted to mention it for tracking and research purposes.

I will be happy to see if HGSI confirms my currently theory that big trading patterns make up one of the best longer term trading strategies.

hgsi20110422

As a side, note, big patterns generally require that there exists a bull market in stocks.  During 2000 to 2003 and 2007 to 2009, I doubt that there existed many bullish big pattern setups.  On the contrary, probably most of them were bearish big pattern plays.  So despite the potential positive prospects of big patterns, I think one has to be aware that when the entire market changes direction, caution is advised. 

A big pattern trading strategy does not mean one should turn a blind eye  to the indices. They still matter and could serve as fair warning to change strategy upon a switch from bull to bear market.

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5 comments on “HGSI Human Genome Sciences Another Big Pattern
  1. JR says:

    Have you considered AFFX. I have 30,000 shares with average price 4.60.
    All my graphs on this look really good. As you know I favor the Golden Cross and this happened about 60 days ago so it is still early.
    MACD, RSI, Stoks, moving average, etc all look really good.
    I mentioned this stock at least a month ago on BOT.
    To me 7 looks like a gimmie. But there is still a lot of room from there.
    Incidentally, did I mention that the fundamentals are really good too.
    Check it out.
    Oh, I still believe you can’t fight the Fed.
    QE2 is not over for at least 2 months and don’t think for a minute after QE2 is over Big Ben is just going to say OK, you are on your own.
    That might make QE2 a waste of time. He is not going to let that happen.
    It will be a smooth transition, slow and very easy.

  2. Tom says:

    AFFX looks like a good long term setup. Thanks again for mentioning AFFX JR. I think I need to do a posting on it…

  3. JR says:

    See my comment(above) about the Fed posted yesterday. 4/26
    Now read what happened today after the release of the Fed statement…
    “The change in wording was subtle, but for the market it was shorthand (or perhaps longhand, considering the chairman’s traditionally opaque language) that another round of quantitative easing—QE3 in market parlance—was on the way.” CNBC five minutes ago. 4/27

  4. Tom says:

    Excellent JR, you have some very good and key insights 🙂

  5. Larry says:

    you guys might like SVNT then.

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