HOW TO BUY GENOCEA STOCK It is time we learn how to buy Genocea stock (GNCA) the right way.  They have just announced successful testing on a new herpes drug.  It basically helps with slowing outbreaks once you already have herpes.  I know this does not sound like something you want to concern yourself with, but when it comes to the possible cash from this drug, you will want to pay close attention to it.  This could be a cornerstone treatment for all those MILLIONS of people who are afflicted with herpes.  And as everyone knows, herpes is the gift that keeps on giving for the rest of your life.  So this is a drug that has the potential to make quite a bit of cash in the next few decades.

If you want to know how to buy Genocea stock, you may want to read my other article here about another pharmaceutical company that just had a breakthrough drug test.  Now we see this stock is going to be very similar to other drugs, such as GW Pharmaceuticals (GWPH Stock Symbol), when they announced their results and basically doubled in price in one day.  It you looked at the closing prices, you will see an almost exact gain for GWPH and GNCA.  I like to learn from the past, so I don’t repeat mistakes in the future.

In GWPH’s case, it closed down the next two days after finishing the first day up about 100%, just like GNCA stock just finished.  Over those next two days, we got to watch as GWPH shed about 15% of its value before closing about flat the next two days after that.  Then we got a bit of a rebound over the next week before the stock started a slow decline to its current price of $72.  This happens to be the original 15% down again.  If GNCA happens to repeat GWPH’s trading pattern, we could see this stock drop about 15% over the next two to four trading sessions to close at or around $6.70 a share.  Now I understand that these are two different cases with different drugs, but it is as close as we can get to studying historic trades in the pharmaceutical industry with sudden news appreciations.  If we want to know how to buy Genocea stock the right way, we need to figure out a few entry and exit points based on today’s action.

When looking at tomorrow, I am going to play this stock to go down based on the above mentioned information.  I have been investing in the shorts of these pharmaceutical stocks quite successfully over the last few years and find that having preset limits will help you avoid that one outlier that could end up burning you.  But for the most part, these “nukes”, as I call them, come off with huge gains, only to give much of those gains back over the following few weeks.  Will GNCA be any different?  I am going to guess no.  The short position was taken up at $7.72.  I am setting some limits on this stock for tomorrow of 20% in loss column.  If it happens to reach $9.30 tomorrow, I will be looking to close out this stock.  Why 20% you may ask?  Well, I looked at GWPH’s trading over that crazy run and never witnessed it going over that 20% point from the opening 100% gain.  With that history to look at, I am guessing that this stock will react much the same way, give or take a few percentage points.  To be honest, I fully expect this stock to be in the red the whole entire day from profit takers and those, such as myself, who take on short positions, which will put more downward pressure on this stock.  This gives you a much clearer idea of how to buy Genocea stock the right way.

Now for those looking to hold this for a much longer time, I suggest studying the recent run up on Alder stock. (ALDR)  It is yet another example what happens after a great drug announcement.  They ended way up after the announcement for the day, but then gave back over the following two days of trading.  Are we starting to see a pattern with these pharmaceutical stocks?  I am, and that is the way I will be playing them for now on.  You can see from that stock, that it did not go over that 20% level either of the next two days either.  So I should be good to go with my 20% loss limit.

We also have the very recent Acadia stock (ACAD) that blew up this week to look at for guidance.  It is a little bit different, buy let’s see what we have with it.  That company received a positive review for their main drug, thus sending it to the FDA for final approval.  The stock opened up huge at $28+ a share and ended at only $25+ a share.  It actually lost almost $3 a share from opening to close.  This makes three consecutive stocks to end up down the day after the big gainer day.  The difference with ACAD is that it ended up the next day, which happens to be today, at $27.96 or plus 7.5%.    This is the first stock to be positive after the initial day of being down.  The other two stocks fell two days in a row with ACAD only falling for one day.  There are reasons that this happened, but I will save that for an add on to the article I wrote here about ACAD.

It will be a crazy day tomorrow, but look for some wild moves from the stock from the opening bell for the first hour.  I think at that point, you will see a steady slide to the closing bell.  It will most likely open and have a quick pop and then the slide.  It is hard to pick an entry spot when you are shorting a stock that has just doubled, but nothing ventured, nothing gained.  We are on a three pharmaceutical stock run with this short position and I see no reason for it not to be four in a row.  Good luck and happy trading and if you need ONE MORE EXAMPLE of what to do after a stock has a huge day, just out yet another article here that I wrote recently.

UPDATE 4-2-16: Well folks, it went down just like I predicted and the money was flowing into our coffers once again.  Take a look at the chart below, you will see that all predictions came through and some. :)


As you can see from above, we never had the stock in positive territory.  Genocea Pharmaceuticals has proven to be an exact copy of the other four stocks that we have made a killing on.  As I usually do, I have closed out 70% of the position at close yesterday and locked in a massive one day gain of 23%!  I am holding on to the other 30% for one more day.  I will be putting stop losses on the rest of my Genocea stock of 15% of yesterday’s close.  I don’t see this happening, but just in case it does, I will still be securing a very nice gain on that remaining stock.  What I expect to happen is that the stock will end up down around 5% to 10% depending on overall market conditions.  On that note, I am going to go celebrate and enjoy a nice meal down at DiSalvo’s.  I think we nailed the answer for how to buy Genocea stock, happy trading and good luck.



  1. Frank Louis says:

    DUDE!!! You just made me more money in one day then I have made in a year with my broker! I owe you a case of beer my friend. You have gained a reader for life. Thank you!

    • Stock Moe says:

      I am very happy to hear that you took advantage of this stock with me. It was what I consider an easy money grab on the short side. You see this kind of play about once every three months. Though lately, these pharmaceutical stocks have been popping quite a bit. You can see some of the other ones I took advantage of. Thanks for writing…Stock Moe

  2. MGarret says:

    These pharma stocks are just repeating themselves and you have found the pattern. I also took a short position before reading your writeup and I am happy to say that everything went the right way. Now the question is…when to get out. I see you already got out, but I have yet to. Hopefully Monday gives us a good exit.

    • Stock Moe says:

      I agree pharmaceutical stocks are becoming very predictable as of late. I think you may have wanted to cut down your position a bit by close on Friday though. You may be alright, but I always like to lock in most of the gains the same day after such a big play. It allowed me to really enjoy the good life this weekend. :) Thanks for writing…Stock Moe

  3. Styleman says:

    What is your next stock that you are going to short? I missed this one, but want to jump on the next one with you. Always a dollar short and a day late.

    • Stock Moe says:

      There have been quite a few short candidates as of late. So you may have see a few other chances this week. Sign up for my newsletter over to the right and you will not miss the next opportunity. It is always the early bird that gets the worm and feels good to have a full stomach. :) Thanks for writing…Stock Moe

  4. Jon Thomas says:

    First time reading your take on stocks. I like your analysis, insight and follow up. I made some profit shorting GNCA. I’ll be looking forward to reading what you have to say in the future. Thank you Moe.

    • Stock Moe says:

      It is becoming easier and easier to spot the overbought pharmaceutical stock as of late. I never quite understand why it happens so frequently in that industry, but if they want to make it easy for us investors to short them, then I will be first in line every single time. I am glad to hear that you made out with it as well. What is your exit strategy if you don’t mind me asking? Thanks for writing…Stock Moe

  5. John Thomas says:

    Kept my eye on the price action all day. Got in at 7.48 in the morning and out at 6.00 end of day. Going to do the same tomorrow.

  6. Any insight on GLMD Moe?

    • Stock Moe says:

      Hi Jon…I have to tell you that is seems to be yet another pharmaceutical stock that explodes in one day for a massive gain of over 40%. It looks very much like others that I have gone on to short with great success following the day of the breakout. It looks to be up in the after market, but like I just said, I would be all over this short. I won’t be surprised to see it fall 10% tomorrow, if not more. I have no positions in this at this time, but I will be adding it to my list of possible plays. What are you thinking of doing? Thanks…Moe

  7. I’m going to watch the price action the first 30 minutes and decide. I think there will be plays long and short tomorrow. I’m leaning toward shorting but may have to play until end of day.

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