You must now start analyzing the charts and buy at the key levels. For example, on no news, Rosetta Genomics Ltd . (NASDAQ:ROSG) has fallen from over $6.50 to $3.45. This monster drop is now crossing the 200 moving average and heading to gap fill at $3.20. This $3.20 level will be where the stock price has been cut in half as well as major support. At this discount, the stock becomes extremely attractive to tuck away a small position.
Another biotech stock approaching a key level is OXiGENE Inc (NASDAQ:OXGN). Good news drove it to $5.40, however the risk adverse market has taken it down to $2.59. There is a key gap fill at $2.43 that offers a very intriguing risk to reward opportunity.
Always remember small cap stocks are very high risk. Most likely the way to trade these plays is to be in, get a solid bounce and take profits.
Chief Market Strategist