GSK: SELL signs signaled on all three tools!!

What a dreadful day, it's only 9:30am and I'm already regretting not selling my GSK shares when I had a chance. As I said before, I bought GSK because of the market, I didn't buy GSK because of my rule #1 researches. This has been a week of bad news, I'll list a brief recap:

• GlaxoSmithKline discontinued the development of Dacart, their malaria drug. Full article. (source: CNNmoney)
• Researchers found out that Gilead's HIV drug outperforms GlaxoSmithKline's competing compound. Full Article. (source: The Motley Fool)
• Just happened today, no necessarily bad but it's nothing good. FDA requests from GlaxoSmithKline regarding the safety of their asthma drug. Full article. (source: Reuters)

As of 12:42 EST GSK has dropped to a new resistance level around 42.4. If you recall I bought the stock at 44.51, not good at all. When GSK breaks even (if it ever does), I will sell it no matter what. I didn't want to own the company to begin with, if the stock rise up after I sell then so be it. I've got my eye keenly set on RIO now, the momentum is going up and it doesn't seem like it's going down, so I have to be patient.

On another news, one more stock came up on my radar. Activision Blizzard (NYSE: ATVI), used to know as just Activision under they merged with Vivendi Games last year (Full Article. source: BBC News). As an avid gamer I'm embarassed to have only found out about it today. If you look at the historical growth rate, Activision does not qualify as a Rule #1 stock. However, as a gamer I know the importance of this merger, it means that the only large consolidate left in the video industry will be EA and the new Activision Blizzard. 10 years ago when I first played Warcraft II, a game made by Blizzard, I told my self that if Blizzard ever issue common stocks I will be the first to buy it. Throughout the years they have proven themselves time and time again with each blockbuster games. Right now the price is strapped around $27, the agreed premium, when the merger is complete I predict that there will be a dip and that will be the time to go in.

Buying Activision Blizzard is not the same thing as owning Blizzard.

But...

It's as close as it gets.

Verdict: Sad about GSK, excited about the future.