SNY Provides A Great Lesson In Risk Management Today

Today was quite active in the biotech/healthcare space. Initially, we had a few symbols moving sharply to the upside, but as the day dragged on many stocks began to reverse and sharply trade lower. We were looking for an entry point in SNY, and once it reached $42.00 we were able to get a valid buy-in point for our signal. However, shortly after this, the markets as a whole began to sharply decline as traders began weighing the financial risk posed by Turkey, including the potential impact of tariffs approved by the Trump administration on Turkish metal exports. Our entry in SNY is a good example of how to manage a trade when things are not going your way. Here’s what happened.