Short-Term Trade Secrets – INSYS Therapeutics Inc (NASDAQ: INSY)

U.S. stocks climbed broadly in early trading Tuesday, sending the Dow Jones industrial average past the 26,000-point mark for the first time. Technology, health care and financial stocks accounted for much of the market’s gains. Energy companies were the only laggard. Shareholders were sizing up the most recent company earnings and deal news after returning from a long holiday weekend.

KEEPING SCORE: The Standard & Poor’s 500 index rose 19 points, or 0.7 percent, to 2,805 as of 10:15 a.m. Eastern Time. The Dow Jones industrial average gained 265 points, or 1 percent, to 26,069. The Nasdaq added 65 points, or 0.9 percent, to 7,326. The Russell 2000 index of smaller-company stocks picked up 9 points, or 0.6 percent, to 1,601.

EARNINGS WATCH: Shareholders were watching for the impact of Washington’s most recent tax changes on U.S. companies as earnings season for the final quarter of 2017 gets into full swing. Many multinational corporations are taking one-off charges for bringing home money held abroad. But shareholders expect them to benefit in the long run from the decision to cut the standard tax rate from 35 percent to 21 percent and are bidding up their share prices.

BIG CHARGE: Citigroup rose 1 percent after the bank stated an $18.3 billion loss for the fourth quarter because of the new tax law. Apart From the one-time charges, Citigroup earned a profit. The stock was up 71 cents to $77.55. (Source: Business Insider)

Top Pick for Wednesday: INSYS Therapeutics, Inc. (NASDAQ: INSY)

INSYS Therapeutics, Inc. (NASDAQ: INSY) has grabbed attention from the analysts when it experienced a change of 2.60% in the last trading session to close at $9.07. A total of 2,542,400 shares exchanged hands during the intra-day trade contrast with its average trading volume of 1.55M shares, while its relative volume stands at 1.64. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it.  If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name.  When stocks are *very* In Play one can see a RVOL of 5 and above.  The higher the RVOL the more In Play the stock is.

Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best.

In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume. Liquidity allows an investor to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the predictable price of a trade and the actual price). If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. This is a problem for day traders and it could mean the difference between a profitable and non-profitable trade.

Traders have different rules for what constitutes liquidity and a good guide is the volume of trades and volume of shares that are traded each day. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.

Trading volume is a gauge of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down.

Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, INSYS Therapeutics, Inc. (NASDAQ: INSY) stock is found to be 8.08% volatile for the week, while 11.61% volatility is recorded for the month.

Technical’s Snapshot:

The stock has a market cap of $612.77M and the number of outstanding shares has been calculated 67.56M. Based on a recent bid, its distance from 20 days simple moving average is 4.15%, and its distance from 50 days simple moving average is 35.80% while it has a distance of -6.06% from the 200 days simple moving average. The company’s distance from 52-week high price is -39.61% and the current price is 121.22% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 54.23 together with Average True Range (ATR 14) of 1.03.

Stock’s Valuation:

Past 5 years growth of INSY observed at 16.50%, and for the next five years the analysts that follow this company is expecting its growth at 28.00%. The stock’s price to sales ratio for trailing twelve months is 3.73 and price to book ratio for the most recent quarter is 6.17, whereas price to cash per share for the most recent quarter are 5.04. Its quick ratio for the most recent quarter is 0.80. Analysts mean recommendation for the stock is 2.00. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

Disclaimer: Any news, report, research, and analysis published on are only for information purposes. Alpha Beta Stock (ABS) makes sure to keep the information up to date and correct, but we didn’t suggest or recommend buying or selling of any financial instrument unless that information is subsequently confirmed on your own. Information in this release is fact checked and produced by competent editors of Alpha Beta Stock; however, human error can exist.

Eddie A. New focuses on breaking news stories and ensuring we offer timely reporting on some of the most recent stories released through market wires about Healthcare Sector companies. He has formerly spent over 5 years as a trader in U.S. Stock Market and is now semi-stepped down. He works on a full time basis for specializing in quicker moving active shares with a short term view on investment opportunities and trends.