Today 12/14/20 was the first trading day since Pfizer’s (PFE) Coronavirus vaccine received FDA approval. The stock dropped sharply. This a classic example of a stock rallying into an event and then decline after the event.
This was noted and anticipated in the 12/08/20 post “Pfizer Nearing Resistance”. A recommendation was made to sell half of the remaining PFE position at the open of trading the next day. The opening PFE price on 12/09/20 was 43.07, the high that day was 43.08 and the stock has been in a down trend since that day. The closing price today was 39.21.
Daily Stochastic has a clear sell crossover from the overbought zone. If the Elliott Wave count illustrated is correct PFE could be vulnerable to decline back to the rallies point of origin made on 03/23/20 at 26.43.
Sell the remaining PFE position on the open of trading 9:30 AM – ET – 12/15/20.