Archive Category: Apex Alert Archive

We added Synopsys, Inc. (Nasdaq: SNPS) to the portfolio a week ago. (You were emailed a trade alert on January 4 to add the position.) Apex trades are rules-driven. In this case, we were going to add a semiconductor stock to the portfolio on January 5. The specific stock is one that carries a high Green Zone Power Rating and has strong momentum in the sector. That was SNPS.

Earlier today, we sold our position in Collegium Pharmaceutical, Inc. (Nasdaq: COLL) for a gain. The stock started selling off yesterday, and the reason for that was simple —  the stock jumped almost 12% on Wednesday. That was when the CEO released a statement about the company’s performance:

I want to start our portfolio update with one question and comment we received this week. Eldon R. asked about capital allocation:

I received a few emails about Collegium Pharmaceutical, Inc. (Nasdaq: COLL). Last week, I noted that the market was broadly higher on the day we entered the trade, and COLL traded in line with the market. Below is a five-minute chart of COLL. We see the opening bounce followed by a pullback. The price drifted lower through most of the day. In fact, more than 98% of trades were completed below the opening price.

Yesterday, we opened a trade in Collegium Pharmaceutical, Inc. (Nasdaq: COLL). For the day, COLL dropped from the opening to the close. This leads to the same question we looked at last week: Do you think your readership is large enough to affect this stock price? There will always be a market impact on a trade. Even if you are trading a stock in a highly liquid exchange-traded fund (ETF) like the SPDR S&P 500 ETF (NYSE: SPY), you order still affects the price.