Swine Flu Stocks

This morning, traders have been playing the speculative swine flu stocks. They all gapped up big time, some as much as 140%! Here's a list of some of the high fliers: APT, AVII, BCRX, GNBT, HEB, QDEL, NVAX, SVA. Let's take a look at one of the charts. Here's the 1 minute chart for AVII:All of these stocks have pretty similar charts. Huge opening followed by a slow decline. This will probably be very painful for a lot of traders...they'll buy at the top, watch it slowly decline and then become bag holders waiting to just breakeven. Then, worst of all, they'll capitulate and sell for a big loss right before the stock takes off again. We've all gone through it at some point, the key is to learn from it and not allow yourself to become a bagholder again.

TLT