Fresh Start

Good Morning folks, 
 It looks as though we already have our 200 percent gainer. Our second one in two days. NRX another bio company is already up 200 percent in premarket. Yesterday it was NDRM. The markets themselves were struggling yesterday and NDRM was the only game in town as people piled in and the shorts kept trying to find the top. Trying to short a stock on the first day of such a strong move is dangerous and yesterday was a perfect example of why as the shorts helped fuel the crazy run that NDRM had. 

At the same time chasing a stock like that can also teach you some bad habits. 
If you waited for it to flag, had a defined stop and a clear target where you planned to book profits then this next section isn't for you.


If you bought the stock because you got wrapped up in the emotion and had to get involved because you didn't want to miss out on owning a stock that is clearly going straight up for eternity. If you had no plan or strategy then you simply got lucky. Don't pat yourself on the back for making a brilliant trade.  
   
If you bought that stock at 16.80 or 17.90 and you managed to make money then you should thank your lucky stars. You bought a stock that closed the previous day at just over 6 dollars a share. A company that has under 8 million shares in the float 1.6 million in cash and 6 million in debt that burns through more cash than they bring in. The risk reward buying it at those lofty prices was clearly not in your favor. I am not a doctor so I can't give my opinion of how good the data was from their phase 2 study but what I do know is that they are low on cash and they are a long ways away from having a drug on the market that generates income. I am not trying to rain on anyone's parade if you did well with the trade congratulations! Just be careful and don't learn bad habits from taking extremely risky trades and having luck be on your side. NDRM may have a red to green move and it could go higher but trade it with caution since they are likely to dilute and raise capital in the near future. 

The markets are flashing green this morning and it could be a wild day in the small bio sector once again. IT IS NOT A SHORTENED TRADING DAY 

Stocks on my radar

NRX will be watching for some sort of setup, CYTK possible continuation, ARWR continuation off rumors, RDHL thin bio with news active premarket, CVEO possible bottom bounce, KNDI continuation fast money pump, XNPT continuation, BCLI thin one active premarket, 

SPY IWM TVIX TZA USO GLD JDST IBB for market sentiment 
CNBC Stocks in the news

	IN THE NEWS TODAY

U.S. stock futures are higher this morning coming off a lackluster session on Tuesday that saw modest losses, but recent historical trends could favor gains today: the Dow, the S&P 500, and the Nasdaq have all gained on the year’s final trading day the past two years. (CNBC) The oil rout deepened on Wednesday as benchmark Brent crude touched a fresh 5-1/2-year low and briefly dipped below $56 a barrel. Oil is heading for its steepest annual decline since 2008, having fallen 49 percent in 2014. (Reuters) Indonesian search and rescue teams believe sonar images show the bulk ofthe missing AirAsia jet lies on the bed of the Java Sea. Seven bodies have been recovered from the area where flight QZ8501 went down after it lost contact with air traffic control on Dec. 28. (CNBC) The potential for U.S. inflation to fall below 1 percent next year is at a five-year high, the Minneapolis Federal Reserve Bank warned on Tuesday. Minneapolis Fed president Narayana Kocherlakota and several economists said policymakers should take the risk of deflation into consideration when setting policy. (Reuters) Venezuela’s economy is in recession and inflation reached 63.6 percent in November, the government confirmed on Tuesday. Gross domestic product contracted 4.8 percent, 4.9 percent, and 2.3 percent in the last three quarters, the Central Bank said. (Reuters) BP (BP) is investigating financial traders in its oil and gas group to determine if they took part in foreign exchange manipulation that has already cost six banks $4.3 billion in fines, the Financial Times reported. (Financial Times) Apple (AAPL) iPad sales are expected to decline in 2014 for the first time in the tablet’s five-year history, ABI Research reported on Tuesday. ABIforecasted iPad sales of 68 million, down from 74 million in 2013. (CNBC) A new survey showed factory activity in China shrank for the first time in seven months in December, following a series of surprise easing moves by the Bank of China. The HSBC/Markit Purchasing Managers' Index reading was 49.6, indicating contraction. (Reuters) Saudi Arabia’s stock market declined sharply on Wednesday after state television reported the nation’s ruler, King Abdullah ibn Abdilaziz, was in the hospital and undergoing medical tests. The index tanked 5 percent following the broadcast. (Reuters) Many Americans accustomed to a temperate New Year's Eve will have to bundle up to ring in 2015. Snow and rain are forecast for Las Vegas, while high winds and freezing temperatures are blowing through California’s Bay Area. (NBC News)

	BY THE NUMBERS

Other numbers out today include the Mortgage Bankers Association’s weekly look at mortgage applications at 7 a.m. ET, and the Energy Department’sweekly measure of oil and gasoline inventories at 10:30 a.m. ET. The Energy Department will also issue its weekly natural gas inventory report a day early because of tomorrow’s holiday, with the releases scheduled for 12 p.m. ET. Wall Street’s year will conclude with three economic reports, beginning with the Labor Department’s weekly look at initial jobless claims at 8:30 a.m. ET. Claims are expected to rise to 290,000 for the week ending Dec. 27, up from 280,000 the prior week. At 9:45 a.m. ET, the Chicago Purchasing Managers Index is seen edging lower to 60.0 in December from November’s 60.8. And at 10 a.m. ET, the National Association of Realtors is out with itsNovember pending home sales report, a look at contracts signed but not closed, with economists looking for a 0.5 percent gain compared to a 1.1 percent drop in October. There are no corporate earnings reports on the calendar for today.

	STOCKS TO WATCH

Abercrombie & Fitch (ANF) is a stock to watch today, as a judge recommended that a revised settlement of a lawsuit involving the pay of former CEO Michael Jeffries be approved. Another judge had rejected the original settlement three months ago. Utility stocks will be on watch today, with that sector being the year’s best performer – but yesterday’s worst. The year’s best performing utility stocks include Integrys Energy (TEG), Edison International (EIX), Entergy Corp (ETR), and Pepco Holdings (POM). GrubHub (GRUB) was upgraded to “outperform” from “market perform” at Barrington Research, with a price target of $43 per share. NeuroDerm (NRDM) shares are under pressure this morning after doubling in Tuesday's trading. The drug maker’s stock had rallied on an upbeat study involving its drug to treat Parkinson’s Disease. Seeking Alpha Today's Markets: In Asia, Japan closed. Hong Kong +2.2% to 3234. China +0.4% to 23605. India +0.4% to 27499. In Europe, at midday, London +0.3%. Paris +0.6%. Frankfurt closed. Futures at 6:20: Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude -1.5% to $53.32. Gold -0.1% to $1199.50. Ten-year Treasury Yield -2 bps to 2.17% Today's economic calendar: 7:00 MBA Mortgage Applications 8:30 Initial Jobless Claims 9:45 Chicago PMI 9:45 Bloomberg Consumer Comfort Index 10:00 Pending Home Sales 10:30 EIA Petroleum Inventories 12:00 PM EIA Natural Gas Inventory Best of Success!