The indices continue to run higher, on 4650 to 2525 positive breadth, but traders seem increasingly nervous about the frothiness of the action. Part of this is due to the frenzy of buying in Bitcoin, which has no intrinsic value and moves purely on supply and demand, but, on the other hand, this sort of action creates increase Fear of Missing Out (FOMO) — and that keeps a bid under the action.
If you are feeling nervous about this market then the best thing you can do is to sell down some things and reset your thinking. You don’t have to be bearish to reset your emotions and your thinking. It can help you to simply stop pressing for more gains and take a little break.
I have some mixed action in my holdings today, and I am taking a few hits here and there, but I’m still seeing plenty of positive action that keeps me bullish. The cannabis names I’ve mentioned recently continue to look good, but I am taking some partial gains in a few places like Curaleaf (CURLF) and Trulieve (TCNNF) .
One stock I’m adding to this morning is an old favorite, Aurinia Pharmaceuticals (AUPH) . There are two pieces of news impacting it. First is that GlaxoSmithKline (GSK) has received approval for a competing drug. This drug is widely believed to be inferior to AUPH’s Voclosporin and the news has been anticipated.
The second piece of news is that AUPH has partnered with a Japanese company for sales of Voclosporin outside the U.S. This isn’t negative news, but it does decrease the chances that AUPH will be bought out soon.
AUPH has an FDA decision coming in late January, which is very likely to be positive. I am building my position as I expect positive anticipation to build for the approval of their blockbuster drug.
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