Nektar Therapeutics (NKTR)
Based on what I just shared with you, NKTR was a lower probability trade with a huge profit potential. This means that while it didn’t have a ton of alignment between constituencies, it had the potential to pay off so well that it was worth the risk of getting whipsawed.
And that’s exactly what it seems do have done to me. After taking out the stop loss orders below the $16 per share area (Green Zone) it has reversed and is coiling again with the odds raising for a bullish breakout.
For those doing their own analysis, you might keep this on your radar for a re-entry. For me, once a stock has triggered stop losses, I know that many readers who haven’t worked on their mental game enough will have some strong emotions connected to this stock which will likely affect their management of any re-entry.
For this reason I’m walking away from NKTR, since my goal for this column is both to show you how consistently the market can be forecast, and that our methodology is worth considering if you are NOT a consistent trader yet, and also to serve those who are still on their path to their goals.
Getting them involved in an emotionally challenging trade doesn’t serve them and will likely end up in them breaking down during a wiggle and missing out on the bigger move.
So I will let NKTR do what it will without be for at least a few weeks.