The tone of the stock market has certainly improved over the last few weeks, although investor sentiment is still down due to the uncertainty surrounding the fiscal cliff. Liquidity is a lot less robust than it used to be, but speculators can still trade off events and momentum.

1. Biotechnology Stocks Seeing Price
Momentum Right Now
The tone of the stock market has
certainly improved over the last few
weeks, although investor sentiment is
still down due to the uncertainty
surrounding the fiscal cliff. Liquidity is a
lot less robust than it used to be, but
speculators can still trade off events and
momentum.
One biotechnology stock that looks like it has some new upward momentum on
the stock market is Alexza Pharmaceuticals, Inc. (NASDAQ/ALXA). This
biotechnology stock is way down from its previous highs, and there’s now some
bottom-fishing going on among speculators. The company has a good following
among Street analysts, and trading volume recently spiked.
It’s very difficult getting into biotechnology stocks in the hopes of catching a
major FDA approval or a new medical discovery. But, as a stock market
speculator, you can play the momentum afterwards. Major moves in share prices
and trading volume are great indicators, and individual investors can easily sift
through this information on a daily basis.Alexza’s stock market chart is featured
below:

2. Chart courtesy of www.StockCharts.com
Biotechnology stocks remain one of the stock market’s hottest sectors (which
certainly is relative these days). The NASDAQ Biotechnology Index is the
benchmark for the industry, and it recently staged a very impressive rally after its
price correction. This index is where you want to be looking for new
biotechnology stocks to trade.
Another biotechnology stock to keep an eye on is Cerus Corporation
(NASDAQ/CERS), which is a company I featured in this column a couple of weeks
ago. This company is in the process of commercializing its “INTERCEPT Blood
System,” which is designed to improve blood safety. The company is methodical
in building its business, working with customers to set up its blood testing
systems, and keeping the stock market well-informed about its corporate

3. developments. The stock recently staged a nice recovery, and I think has further
momentum over the near term. Cerus’ stock market chart is below:
Chart courtesy of www.StockCharts.com
There’s a reticence to the broader stock market, and the S&P 500 Index seems
stuck in a trading range. Speculating in gold, silver, and oil stocks is now a lot
more difficult because underlying commodity prices are experiencing a
consolidation of their own. That’s why biotechnology stocks are relatively
attractive in this slow growth market. They have the liquidity, price momentum
(both up and down) and institutional investors love to participate in the sector.
The stock market has good potential to advance in January as expectations for
corporate earnings rise. Both Alexza Pharmaceuticals and Cerus are junior
biotechnology stocks to keep an eye on right now. There is a lot of opportunity

4. within the biotechnology sector these days, which is one of the few in the stock
market currently experiencing upward price momentum.
Source: Penny Stock Detectives