Dendreon Making Noise Again

12:40pm (EST) The market is moving higher today as the Dow now stands 100 points away from 10,000. Currently, the index is up 37 to 9,901 and traded as high as 9,931 earlier this morning. Trading has been fairly light due to the Columbus Day holiday and the bond markets are closed. There are no major economic reports today so the bulls could make their run in the afternoon. Exxon Mobil (XOM, $70.25, up $0.98) has busted through $70 and I had mentioned that we missed a trade when the stock traded to a low of $66 last Monday. I listed the November 70 calls (XOMKN, $1.85, up $0.35) outside of the Members Area because they were up 40% that day and I didn’t like the entry price of $1.50. Since it was sort of a “Free Trade”, I thought I would expand my thoughts on the subject. There is resistance at $71-$72 for the stock and if you got in at $1.50, set stops there. If Exxon can muster up some momentum then shares have a shot at $73-$74 where further resistance comes into play. If the stock is at $73 by November 20th, the November 70’s are worth at least $3; at $74 they are worth $4… One of our favorite Biotech’s is getting a pop today. It looks like Dendreon (DNDN, $29.38, up $1.90) could be on the move again. On the last day of August, we profiled a Dendreon trade that returned subscribers 100% in a little over two weeks. In March, Dendreon made the move from $5 to $25 and some subscribers made 10x that. Dendreon will submit its application for Provenge to the FDA in November but today’s jump comes on news that the company added two new directors to its board. One of them is chief executive of Roche’s Genentech unit and the other is a former Eli Lilly (LLY, $33.88, up $0.10) manufacturing executive. I don’t think we get in today but I’m looking at the option chain to see which ones could benefit the most if a buyout offer is coming… Speaking of noise, Abercrombie & Fitch (ANF, $35.97, up $1.15) has continued its rebound and is setting up nice for us. I will be back in the morning with the trade updates and possibly some new gems. Let’s hope the bulls continue to push.]]>

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Dendreon Making Noise Again

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