Cypress Bioscience (CYPB)

Company

"Cypress is committed to be the innovator and leader in providing products that improve the treatment of Functional Somatic Syndromes, including Fibromyalgia Syndrome (FMS), and other central nervous system conditions. Cypress' strategy involves acquiring/in-licensing undervalued central nervous system active compounds and developing them for new indications." (company website)

Buy

date. Cypress Bioscience shares were slammed last September (down 56% in one day; see sidebar) after the company released disappointing data on its drug milnacipran, which it was testing to treat fibromyalgia. Since then it clawed its way back up to $8 before regrouping. It is now poised to push above that level, having been given a boost by reporting narrower losses in early August.

• Price momentum (PPO) — slowing in recent days, but big increase over three months
• Trend (ADX) — strong, with buying pressure (+DI) above selling pressure (-DI)
• Money flow (CMF) — brisk flow of money into the stock
• Relative strength (RSI) — was over-bought, and now above neutral
• Volume — a little worrisome, because daily average volume is shrinking

Sell

15-Sep-06. I decided today that my buy had been premature. It now seems likely that the pullback will be deeper, with no guarantee of going back up. Although I had to take a small loss, I bailed to limit a greater potential loss.