President Trump pressed Big Pharma executives to increase U.S. production and lower drug prices. As biotechnology stocks have been showing momentum following a meeting between President Trump and pharmaceutical executives Tuesday, our two long investments to watch are in that sector. There are also several shorts among our charts to watch to play the potential downside in this near-term, toppy-looking stock market. Gene-therapy company bluebird bio Inc. BLUE, -2.10% has a strong-looking chart. The stock recently broke out of a wedge pattern, in which its price range had narrowed for two months in essentially a sideways direction. The stock continued the upmove on Tuesday when it popped $5.90, or over 8%, to $74.50, and followed through for another $1.10 on Wednesday to $75.60. The stock is now positioned to challenge its recent high at $79.70 from early December. A break through there could lead to a move into the mid-$80s, followed by a next target in the mid-$90s. With short interest of 9.2 its average volume, the price advance could be further fueled by short covering. Cara Therapeutics Inc. CARA, +0.12% a cannabis-based biotech, has been steadily climbing since the start of the year. On Wednesday, the stock popped $1.17, … Continue reading
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