Sinovac Biotech Ltd. (SVA) : A Short Term Play on H1N1

This is a short term play on possible flu outbreak in the coming months.

As such, I do not have a very large position and have in place a fairly tight stop loss in place.


Earnings will be due soon so prices may be affected on the downside given its low float



Gilead Science (GILD) : Abnormal behaviour on an up day

Previously, I have warn that GILD exhibits a bearish Tenkan sen – Kijun sen cross.

Yesterday, GILD exhibit an abnormal behaviour (and a more worrying bearish trend).

While the major indices rose more than 3%, GILD actually got sold down.

From the chart, you can see that throughout May, there has been more selling than buying. Only exception is when the ‘swine flu’ news or ‘H1N1’ news break out.

Points to note:

1. It break another support level at 43.69 on a day where the indices are up

2. The volume is above average which suggest that there is a fair amount of selling and not an issue of just profit taking.

3. More down days than up days in May.

4. Look at the ‘kumo’ or ‘cloud’ beyond the current date. We can clearly see that it has start trending down.



GILD : Bearish Signal (Beware)

After the gap up due to the ‘swine flu’ news, GILD has been trading downwards since.

To the point that a bearish signal is now sighted on the Daily Chart.

1. As can be seen, Tenkan sen has cuts Kijun sen. And with so many consecutive down days, it is definitely a signal to take note of.

2. Support level is sighted at 43.80; a level that has been supported 3 times this year.

3. For those holding long positions of GILD, that is a level to take note of. Take care out there. The major indices are hitting resistant levels soon and may turn down as well.