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Fast Money, But What Direction Is It Going?

If you’re inclined to get your financial info from fast-talking analysts on cable news channels, you might want to give this blog post a read. The author points out several egregious mistakes that CNBC’s “Fast Money” has made with biotech/pharma stocks by having traders giving out advice and forecasts despite apparently knowing very little about the sector at all:

Fast Money found a way to make itself infamous at the (ASCO) meeting last year when one of its traders, Jon Najarian (@optionmonster), mentioned on TV that Celsion (Nasdaq: CLSN) was his ASCO stock to watch. The problem with that prediction, and you barely have to be a biotech person to know this, is that Celsion is not only a very dubious company to begin with, but they had NO presence at that year’s meeting whatsoever. To stick with a baseball analogy, it would have been akin to predicting the Carolina Mudcats will make a run for the World Series. This literally became the meeting’s running joke. I saw people toasting it at social events, and heard stories of traders looking in jest for Celsion’s presentation at the poster section like something out of Where’s Waldo. . .

Trying to understand biology, medicine, and chemistry is a lot harder than reading stock market charts for reverse goose-steps, Cleesian leg-outs, or whatever the pattern is supposed to be.

6 comments on “Fast Money, But What Direction Is It Going?”

  1. Doug Steinman says:

    Pure traders trade strictly on the basis of trading patterns and pretty much ignore fundamentals because they are in it strictly for the short term. Sometimes they will be in and out of a stock in the same day. That is not to say that they do not have the capacity to understand the fundamentals that underlie a particular stock, it’s just that the fundamentals are not as important to them as the chart and trading patterns. I used to trade options for “fun” but these days it is too hard to win against the big boys so unless I do a covered write (which would be based on the fundamentals of the underlying stock) I don’t mess with it.

  2. annon says:

    I feel Cramer also gives advise on bioteechs without actually appreciating all the staged risks, and that he can’t separate the hype vs the reality.

  3. hn says:

    But if these people represent mindset of many traders, you need to know what they’re thinking, even if it’s senseless.

  4. newnickname says:

    Sorry to be a pain, but counting from the most recent blog entry=1 (“Fast Money”) to earlier entries=2,3,4 …
    I see all of 1 and all three comments (before this post). I can see 2 (“P/AZ”) but the comments are cut short in the middle of comment two. Blog entry 3 (“Young Blood”) is truncated with no comments visible. Entry 4 (“Some People”) is a blank white page: no blog, no comments. Entry 5 (“Allergan Golf Course”) is a blank white page. Etc.
    This has been on different computers since earlier in the day on Monday. Others are reporting problems, too (when they can).
    Thank you.

  5. Lyle Langley says:

    Does Cramer understand anything that he gives an opinion on? I’d say very little.

  6. Anonymous BMS Researcher says:

    @newnickname: Derek has been very much aware of the technical issues for some days and trying to get them fixed.
    I love the sly Monty Python reference in Derek’s post — Cleesian leg-outs clearly refers to the Ministry of Silly Walks. The really clever thing about Derek’s little joke is that “leg out” also happens to be an actual term used by day traders.
    For some actual Silly Walks, search your favorite video site for Wagah Border Crossing.

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