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Dec. 23, 2016, 1:32 p.m. EST

Growth-stock speculators need to tap the brakes here

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About Kevin Marder

Kevin Marder is a guest columnist and a co-founder of MarketWatch. He is principal of Marder Investment Advisors Corp. and a contributor to The Gilmo Report. Previously, he served as chief market strategist for Ladenburg Thalmann Co. and developed institutional fixed-income risk management software for Capital Management Sciences.

/conga/trading-deck/bios/marder_kevin.html 173642
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By Kevin Marder

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On Friday, stock of the alternative energy specialist did pull back to within eight cents of the 28.37 base top, where it met with some demand and was last at 28.90. A pullback buy in the form of a half-sized starter position can be purchased around this level. A 10% stop below entrance can be used. While 10% seems like a wide stop, this equates to a de facto stop of 5% due to the half-sized starter position.

Green Plains is not a growth stock but rather a turnaround situation.

Chart created using MarketSmith . ©2016 MarketSmith Incorporated. All rights reserved.

Clovis Oncology /zigman2/quotes/201295534/composite CLVS +12.98% represents an interesting play, albeit with high risk. The maker of cancer treatments is up 287% since bottoming in June following a 90% tumble from its September 2015 high.

While nothing says the stock cannot revisit its prior low of 11.57, the fact that it has already gone through a brutal period of liquidation and is currently under extreme accumulation may indicate the worst is behind it, at least in the medium-term.

Monday's volume of 438% above average turnover sent CLVS up 9%, allowing it to clear the top of a 12-week basing pattern. While it is considered materially extended above the top of this consolidation area, aggressive speculators who like to target names following an outsized selloff might wish to monitor CLVS for a pullback. Any pullback to the top of the base at about 40.30 would represent a more attractive entrance than at present.

Words to the wise: This is a highly speculative play due to it being a development-stage company with no revenue and losses forecast by Wall Street to extend into 2017.

Chart created using MarketSmith . ©2016 MarketSmith Incorporated. All rights reserved.

The hefty, seven-week move in the averages has decimated the population of pattern setups available to the intermediate-term speculator. Growth stocks are decidedly out of favor on the long side, with some offering short-sale possibilities. This is more a time for caution than for an aggressive posture.

Kevin Marder

For intraday market comments and stock ideas: https://twitter.com/mardermarket

Earnings estimate data provided by Thomson Reuters.

The views contained herein represent those of Marder Investment Advisors Corp. ("MIAC"). At the time of this writing, of the stocks mentioned in this report, Kevin Marder and/or MIAC held no positions, though positions are subject to change at any time and without notice. This information, which may have been previously disseminated, is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. Past performance of any security or strategy is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to MIAC, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Neither MIAC nor any of its affiliates will be liable, and we accept no liability whatsoever, for any losses any recipient of this report may suffer as a result of his or her or its use of this report or any of its contents.

/zigman2/quotes/201295534/composite
US : U.S.: Nasdaq
$ 12.10
+1.39 +12.98%
Volume: 17.90M
Dec. 10, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$587.07 million
Rev. per Employee
$203,821
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