Exelixis (EXEL)

Company

"Exelixis, Inc. is a development-stage biotechnology company dedicated to the discovery and development of novel small molecule therapeutics for the treatment of cancer and other serious diseases. The company is leveraging its fully integrated drug discovery platform to fuel the growth of its development pipeline, which is primarily focused on cancer. Currently, Exelixis' broad product pipeline includes investigational compounds in Phase II and Phase I clinical development for cancer and renal disease. Exelixis has established strategic corporate alliances with major pharmaceutical and biotechnology companies, including GlaxoSmithKline, Bristol-Myers Squibb Company, Genentech, Wyeth Pharmaceuticals and Sankyo." (company website)

Sell short

27-Nov-06. After reaching $12, EXEL began a downtrend that was not broken by the intermediate peak at $10.65. It has just failed, again, to break above the 50-day moving average.

• Price momentum (PPO) — losing momentum
• Trend (ADX) — weakened after earnings report, and selling pressure (-DI) is picking up again
• Money flow (CMF) — somewhat positive inflow
• Relative strength (RSI) — losing strength
• Volume — average has increased following bit sell-off

Sell

18-Dec-06. Santa Claus came to town for Exelixis, and I lost money. There was news this morning of a drug-development deal with Bristol-Myers, causing EXEL to shoot up at the open. This triggered my stop-loss order near the high so far today; since then the price has fallen back below my activation price.

It's probably just as well. EXEL had been showing signs of improvement and it was not clear if it would break above the resistance line or fall back below it.