Issued: 10/31/2014
Salix pharmaceuticals, SLXP:
1. In Thursday’s (Oct. 30) Williams edge stock meeting it was noted that Salix pharmaceuticals was a ‘Buy’ at or above $141 for an expected test/attempt at $148 (or higher) into the week of Nov. 3.
2. Today’s Salak’s session made a swing high of $147.51, within $.49 of the forecast $148 upside target. It is anticipated an initial profit exit was taken at/near $148. If not, an initial profit should be taken at current prices.
3. Any remaining long position should be held for the possibility of higher prices to be messaged in a subsequent update.
4. A protective sell stop should be placed at $142.35. This stop will be moved higher as the market continues to confirm.
David Williams
Issued: 11/12/2014
Salix pharmaceuticals, SLXP:
1. Salix pharmaceuticals advanced off our Oct. 31 buying territory at $141.00 for an expected test/attempt at $148.00 (or higher) into the week of Nov. 3.
2. On Oct. 31 Salix attempted the $148.00 upside target with a session high of $147.51. Shortly after that our initial long position profit exit was indicated.
3. The market subsequently declined and hit our protective sell stop at $142.35 (above the $141.00 long entry level) resulting in a successful trade.
4. By reviewing a daily chart of Salix it is obvious why the market could not complete the $148.00 upside target. Just days after the $148.00 upside attempt Salix sustained a wide-open break of approximately 40% (!) off the $147.51 Oct. 31 session high.
5. The failure to complete $148.00 was not random but the result of extreme selling pressure working against the advance to $148.00. Once the ‘up cycle’ that prompted our trade was over, the extreme selling pressure took the market down 40% in a single day on Nov. 7. Will message any further entry or indication.
David Williams