ImClone Systems, 1-minute Candlevolume Chart
A press release titled "ImClone Systems Incorporated and
Bristol-Myers Squibb Announce Submission of Biologics License Application for Erbitux--Cetuximab--to
Treat Irinotecan-Refractory Metastatic Colorectal Cancer" came across the wire a little after noon yesterday. You can see in the 1-minute
candlevolume chart above how the market reacted.
Now you have to wonder how many people know anything about irinotecan-refractory metastic
colorectal cancer. In fact, you'd probably be hard pressed to find a trader who can correctly pronounce most of those words. (I think they
probably latched onto one word: 'Erbitux.') No matter, just buy!
ImClone Systems, 30-minute Chart
Then there are the dinosaurs like me who are playing off the 30-minute chart and have time to think "so what, they submitted an
application for some drug, who cares?" A nice narrow range inside bar forms after the hubbub dies down, you get short beneath it, risk around 20 cents, make around
90 cents at the close.
Fading the news lemmings isn't something I normally do, but I can see why so many claim to find easy pickings this way. Some traders
will even risk the permanent brain damage that exposure to CNBC causes in order to know what cliff the little guys are
currently rushing toward.
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