Timing is Everything: IDCC, DCTH, ACAD

With traders still a little unsure about what the market environment really is, we all have to trade lightly - and smartly - when it comes to new entries and exits. That's what makes InterDigital, Inc. (NASDAQ:IDCC), ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), and Delcath Systems, Inc. (NASDAQ:DCTH). They're all highly-watched stocks, but more than that, they've all recently dropped hints that traders should note. Take a look.

The good news for ACADIA Pharmaceuticals Inc. shareholder is, the stock's up 15% today. The bad news for anyone who wanted to jump into a long position is, the stock's up 15% today. The good news for those same folks who wanted into ACAD but can't stand the though of getting in at this high level, it's likely fall back quote a bit later this week. The bad news for current owners is, that pullback is going to eat into today's gains. Welcome to trading.

No matter how you slice it, ACAD is in a new uptrend. We've already seen higher lows, and now higher highs. With today's big pop driving the stock right up into - but no farther than - the 200-day moving average line (a natural resistance level), we're likely at a short-term ceiling. If you're looking to get into ACADIA Pharmaceuticals, the chart's pattern says you'll get another chance to do so around $1.27. Make no mistake though - this weekly chart confirms there is a bigger uptrend underway.

What we expect to happen with ACADIA has already happened to Delcath Systems, Inc., meaning today may be the right time to take on a long position. The 200-day moving average line was brushed last Friday after a pretty solid runup, and sure enough, DCTH fell back.... almost to the combined 20-day and 100-day moving average lines at $3.33. Take a look at what happened there though. Today, the chart's back in a bullish mood/mode.

While the ultimate buy signal for DCTH may well be the cross above the all-important 200-day average at $4.47, waiting for that even may not be totally necessary... and it would definitely leave money on the table. The late-December cross above the 100-day average was the first time Delcath Systems had been above that long-term line since early January, and it was clearly a game-changing crossover for the stock. See it here.

Finally, though it's still far from being clinched, after three weeks' worth of fight, InterDigital, Inc. has made its way above a nagging 50-day moving average line (which had been holding it back since late December). With today's pop to $43.94 though, the tide may have officially turned for the better with IDCC.

At first glance, the recovery effort for the chart isn't clear. Take a closer look though. The 20-day line is now sloped upward for IDCC, and is on pace to cross above the 50-day average line within a matter of days. Moreover, the 20-day line (blue) has started to act as a support level. A couple more days of support and progress above the 50-day average line would be a huge deal for the InterDigital bulls here, but the transition from a pullback to a sideways period to a modest uptrend is almost complete.