Here is a short clip of my discussion of KERX from today’s AM Meeting. It is a small biotech that had positive Phase III data. Towards the end of the clip I talk a bit about how momo funds will push around these lower priced biotechs without regard for percentage moves. Too many times I have seen the DNDNs ARNAs and VVUSs run much farther than less experienced traders expect and therefore they fail to capitalize on these outsized moves. Even worse some try to be “too cute” and get short causing them to take unnecessary losses. Imprint this setup on your brain it will happen a bunch of times every year.
Steven Spencer is the co-founder of SMB Capital and SMB University and has traded professionally for 16 years. His email is [email protected].
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