SMB Training provides educational services and training related to trading securities. They offer both online and in-person seminars to teach traders, but do not offer brokerage services. Any investment decisions are the full responsibility of the individual and should be based on their financial needs and risk tolerance. The document also discusses a stock called NBIX that experienced a gap up on news of positive clinical trial results. Technical analysis of NBIX's pre-market trading found it was holding above the VWAP and grinding higher throughout the morning.

1. NBIX: Gap Up Continuation Long on
News Catalyst SIP
Clayton Yee
01/07/2014

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3. NBIX
• ADV: 683K (below 1M, but premarket already
traded over 1M shares)
• ATR: 0.35
• SF: 6%
• Sector: Healthcare, Drug Manufacturers

4. Big Picture
•
•
•
•
1st three 2014 trading days ES down
Overnight, grind up, back in middle of 2014 range.
1833 was last weak S and 2014 R; 1818 YL, 2014 L
This is not a market play. Based on news catalyst.

5. Intraday Fundamentals
• Yesterday, after the close, NBIX announced
good clinical trial results for one of their
drugs.
• The company has no products yet.
• Steve tweeted yesterday to keep an eye on
this today
• On premarket most active list

6. Technical Analysis
•
•
Overnight gap: YC 9.76 pre-market open 16
Pre market, holding VWAP since 09:00

7. Reading the Tape
• Since 08:25, grinding up
• 09:27, held bid at 15.35 dropped, but stock
went up
• 10:19, pullback test (16.10) of opening drive
H (16.13) was a place I considered adding

8. Trade Management

9. Trade Review
• What went well
– Identified SIP, levels and setup
– I actually did a better job sitting with my anxiety and discomfort than in the past and am
continuing to improve
• Areas of improvement
– Be more patient for better risk-reward on initial entry
•
If decide to do a feeler, start with small size
– Improve holding for a reason2sell, being nervous and anxious is not one of them.
•
A trend line break was one possibility in this trade
– I am working on holding a core position. I am too easily spooked out.
– I had noted the opening drive H level (16.13) as a intraday key level. Once we broke
above and held, that was a place to consider adding.
– ATH 16.73 break was also a place to look for adding.

10. Next Trade
• Watch for continued follow through the next
day and see if today’s levels act as support.