TRADES ON DIABETES STOCKS

Based on our analysis of the presentations at American Diabetes Association's Annual Meeting in New Orleans, we expect the following stocks to move : LLY, AMLN, ALKS, INCY, HALO,ALXN, MRK AND AZN.

Data from all of the above companies is positive. We can easily analyze the data, but predicting the direction of the stock movement is difficult. Our studies have concluded that the direction of stock movement rests in the hands of a handful of large market participants. These large participants start moving the stocks based on the differential between their expectations and actual data. Rest of the market follows .

We are inclined to start scaling in short sell positions in these stocks in the pre market especially on spikes up and adding to the positions right after regular market open.