QLT Inc. (QLTI)

Company

"QLT is a global biopharmaceutical company specializing in developing treatments for cancer, eye diseases and dermatological and urological conditions. We have combined our expertise in the discovery, development, commercialization and manufacture of innovative drug therapies with our unique technology platforms to create highly successful products such as Visudyne® and Eligard®." (company website)

Buy

23-Feb-06. QLT has been on a steep downtrend for the past twelve months (sidebar), but appears to have broken the trend. QLTI reported earnings yesterday before the bell. Although earnings fell one cent short of expectations, losses for the year were chalked up to "massive charges". This must have been the news the market was waiting for, since the price jumped dramatically. Go figure.

• Price momentum (PPO) — picking up sharply this year
• Trend (ADX) — strong and strengthening
• Money flow (CMF) — was strongly negative, now positive
• Relative strength (RSI) — strengthened greatly in past month
• Volume — huge volume on yesterday's jump

I expected a pull-back and entered a buy order to trigger if QLTI traded at $6.90 or below.

Sell

3-May-06. I decided to sell one lot of QLTI to lock in profits, even though the signs are ripe for leaving oversold (StochRSI) and advancing further. I still have two lots (bought 20-Mar-06 and 21-Apr-06)