Traders: The Biggest Obstacle in Your Way Could Be… You
Juno Therapeutics’ (NASDAQ: JUNO) 87% surge in January began long before the Jan. 22 buyout
by Nico Isaac
Updated: February 07, 2018
Last weekend a friend invited me over to help clean out old boxes and memorabilia from her basement to make room for a long-desired home gym. As we started to sift through the stockpile, I'd hold up a raggedy old doll with one eye dangling from a thread, or some barely legible note written decades ago in college and ask, "keep" or "trash"? Nine times out of ten, she'd look at the item and sentimentally choose "keep." So, in the end, we barely made a dent in the boxes and the gym would have to wait yet another year.
My friend's attachment to the past was holding her back from creating a healthier future.
What does this have to do with you?
Well, that depends. See, at the beginning of this year, in his January 9 Trader's Classroom lesson, editor Jeffrey Kennedy challenged traders with this question: Are you bringing emotional baggage with you to the markets you trade? In Jeffrey's words:
"Your individual psychology can very much influence your trading. If you're having a bad day, maybe you take it out on the markets or maybe the trade doesn't go your way so you double up on the next one. It's this emotional baggage that we need to be aware of and more importantly, we need to cut loose. So, include some bolt cutters in your trader's toolbox."
You'll soon see, in the video clip below, that Jeffrey keeps an actual pair of bolt cutters under his desk! But for now, it's important to acknowledge another item that may be holding traders back from success -- a heavy reliance on the news to guide their trading decisions.
This one is a little trickier to cut yourself loose from, considering mainstream analysis is built on the idea that news is the main driver of market trends. Take, for example, the recent, show-stopping performance of one popular biotech stock, Juno Therapeutics, Inc. (NASDAQ: JUNO).
In January alone, JUNO skyrocketed an astounding 87% to reach an all-time high. And, according to many sources, the reason for the surge was the January 17 "rumor" of an imminent buyout from Juno's top stakeholder, Celgene Corp., and then the actual January 22, $9 billion acquisition. Here, these headlines from the time set the tone:
- "Juno Therapeutics Soars on Report of Celgene Deal" (Jan. 17 CBS News)
- "Shares of Juno already up 50% on deal hopes" (Jan. 22 CNBC)
- "Juno stock screamed higher in January... after the company reportedly agreed to a $9 billion all-cash buyout offer from its largest stakeholder." (Feb. 5 Motley Fool)
Sounds reasonable. Except that Juno's rally began two weeks before even the rumor of Celgene's interest leaked.
In fact, the bulk of JUNO's January surge was complete by the time the actual deal was signed on January 22.
Here's where Jeffrey Kennedy steps in. See, in that same January 9 Trader's Classroom -- two weeks earlier -- Jeffrey showed subscribers this chart of JUNO that identified a bullish fifth-wave rally setup.
Jeffrey's analysis wasn't guided by the news. There was no news yet! He based his bullish forecast on the Elliott wave pattern, driven by investor psychology.
Watch this clip from the January 9 Trader's Classroom and hear Jeffrey's JUNO analysis in person. Simply press play and enjoy!
The next chart shows where Jeffrey's bullish outlook occurred alongside JUNO's stunning January surge.
Clear out the unwanted baggage in your trader's toolbox and cut the "news" reliance loose. Then, you'll be one step closer to a truly objective way of identifying high-confidence trade setups in the markets you follow.
Become THAT trader who can see high-confidence entries, get in and get out with confidence — and sleep at night.
Several times a week, you meet with a market veteran and he's one of the most sought-after teachers in the world. He has dedicated his entire professional career to helping traders like you spot and act on high-confidence trade setups.
At every meeting, you watch over his shoulder as he shows you exactly how to spot your market opportunity. And he doesn't just teach principles. He uses real-life market opportunities to show you the telltale signs that a market is about to move. He also coaches you on how to create your trading plan for this setup — including how to estimate upside potential and identify risk-limiting price levels.
Sound like an ideal fantasy? Well...
THAT is exactly what Jeffrey Kennedy is offering you as a Trader's Classroom subscriber!