PPR - QCOR comment

Published : July 10 2012 at 15:44 ET

QCOR rose over 13% in yesterday's trade as it saw an increase in its Acthar drug shipments and a price target upgrade to $60 at Jefferies. In today's trade, QCOR has so far plunged more than 20% due to a report that says its Acthar drug has a much lower barrier of entry, thus making profits at QCOR vulnerable.

Price action of the last two days in QCOR illustrate a point- even if a stock breaks out on big volume and looks fine, all it takes is one day to reverse course, especially if done so on heavy volume. In such a case, selling at least half if not the whole of one's position is prudent. Big volume selling in QCOR began around the 55 price level. Once QCOR hit 50, reversing the big gain it made yesterday on big volume, that was a red flag to sell at least half if not the whole position.

As we have suggested, having computer and/or mobile email alerts set on all of your positions when investing in stocks is advised.

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