Short position in ALEC [Alector Inc]

Hi friends!

Thanks to the growth of sp500, it was possible to open a position in ALEС  [Alector Inc] at a very good price!

Let’s go through the perspectives of why this company is on the list of companies that will continue to fall in price (in my opinion).

What we have in terms of fundamental background:

  • Small cap (400M)
  • All time low (no resistance levels)
  • Sector Biotechnology (as a rule, most of such companies are zeroed out)
  • Big insider selling (!!!)
  • No dividends

Short position in ALEC [Alector Inc]

Also we have a good technical background:

  • Lower highs on the remaining bars
  • Powerful lever for breakdown (+every high is lower than previous)
  • Close level retest (buyers have no power)
  • No gaps and paranormal bars

But there is also a small minus. The breakdown bar was not ideal. However, other factors are so strong that I did not consider the quality of the breakdown itself.

My position parameters:

  • Open @ 4.67
  • Take Profit @ 1.02
  • Stop Loss @ 5.40

See you in the next deals!


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About the author

Oleksandr Yanchak

Active investor and short seller. Most of the market is bad and mediocre companies. Then why buy them? Find a good entry point with minimal risk - and sell. Steady money only in Short Sales!

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