What’s Next for Spectrum Pharmaceuticals (SPPI)?
Though we strictly adhere to a policy of not offering individual advice (for regulatory as well as feasibility reasons), in cases where sharing our thoughts with everyone is educational and broad in its scope, we don’t mind answering some questions with our opinion…. like the one we got today regarding Spectrum Pharmaceuticals (SPPI). Our reader writes….
I OWN SPPI STOCKS AND FIND IT PIERCED THROUGH YOUR BOTTOM OF 4.78! ON CHARTS. WHERE NEXT? — ‘IYEEKS ‘ AS YOU SAID!
Thanks for the note. A little background work may be in order for everyone to fully appreciate our answer. The discussion the note references was actually posted last Friday after SPPI broke under one key Fibonacci retracement line, and tumbled (gapped, actually) all the way to the next one at $4.80. If the $4.80 one broke as well, then Yikes! indeed.
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Well, yikes. As you can see from the chart below, the floor at $4.80 broke in the meantime, and Spectrum Pharmaceuticals shares are now trading at $4.67.
As far as the ‘where next?’ is concerned, we don’t even really have a strong idea yet. The fact that SPPI can’t get back above the Fibonacci line at $4.80 isn’t a good sign… that’s for sure, but it’s still working on getting back over the hump.
From my perspective, it’s too soon to give up on Spectrum simply because (1) you’ve already ridden it this low, and (2) it’s trying to recover. If SPPI rolls over again though, and makes a low under yesterday’s low of $4.35, that’s likely to be a strong sign that things are poised to get much worse before they get better. In the meantime, I’d say the chart’s in limbo.
The bigger lesson that Spectrum Pharmaceuticals has taught us here is simply to use and be aware of Fibonacci retracement lines. They’re not perfect, but when used in conjunction with other tools they can really improve your trading odds.
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How can the street,cramer and adam feuerstein spinn ,basher and slander Cel-Sci CVM for the last few weeks in to the ground,like they worket hard
to make Denderon and more Company’s look real bad. Is the USA becoming like Nigeria ?Throw anything on the Wall and something will stick, this is also how Cramer works on the TV with his Toy’s BS. He is around 50% of the time wrong and anybody could make just about the same predictions.
Flip a coint and you got it.Well he has many TV hug’s who don’t read much just watch TV.Is the SEC on Vacation again ? On 10-16-09 Feuerstein was writing”CVM sharholders are $0.32 penny junkies” ,well I love to be a penny junkie,I purchased CVm at $0.38 and I am buying more and more because there is a great chance the stock will be over $5, plus.So why has Cramer,the Street and Feuerstein spent so much time on CVM a penny stock?? Oh,i get it,it is about the Hedges Buddies who will pay for there Vacation’s and a lot more. Thank you for your time .Sorry about my english .HH
Comment by hansel — 10/17/2009 @ 2:02 pm