Sometimes I go back to the well.

By that, I mean that sometimes I trade a stock multiple times if the stock continues to offer me opportunities.

This is currently the case with MCRB.

I recently closed out a successful swing trade in the stock. However, I am not done with it just yet.

With fresh news and the stock gaining momentum, I am keeping a close eye on the name for possible re-entry.

Before I go over my trade and updated plan, let’s take a quick look at Seres Therapeutics Inc (MCRB).

According to Yahoo, MCRB is a microbiome therapeutics company that develops bacterial consortia designed to functionally interact with host cells and tissues to treat disease.

The stock is down 56.08% year to date; however, it has staged a comeback in recent times, with the stock up 67.86% on the quarter and 76.97% on the month.

The stock closed the day up 22% yesterday after the company announced that the first patient had been enrolled in the companies Phase 1b study of SER-155, an investigational microbiome therapeutic to reduce the risk of antibiotic-resistant bacterial infections and graft-versus-host disease. 

Key Stats, per Finviz:


Market Cap: 935.37M

Float: 83.54M

Average Volume: 1.91M

Short Interest: 10.64%


Interestingly, MCRB has an average price target, set by analysts covering the name, of $20.57, which is, of course, much higher than where the stock closed yesterday.


My Previous Swing Trade: 

On November 10th MCRB broke out of a daily consolidation and experienced an impressive increase in volume.

That day I shared my thoughts and trade plan with my members, saying in the Biotech Breakout Mid-Day Watch List:

MCRB is now approaching a big gap area from $10s to near $20. I am looking for possible entry around $8 for a run at $10 to $11 area with a stop around $7.”

I bought MCRB, on November 10th, in two stages and had an average entry price of $8.44.

I sold the long position in two stages.

My first sale came on November 18th. I sold at $8.68.

I closed the position on November 29th at $9.22.

Updated Trade Plan:

Even though I never sold at $10, that was ultimately a successful swing trade that required a lot of patience and staying power.

With that being said, though, I’m not done with this stock just yet.

The stock is back on my radar.

As I mentioned yesterday to my members in the Biotech Breakouts Trade Plans, I am watching the stock closely as it approaches the $11 gap area.

If the stock can base over the gap area, I will look to get long for a possible swing trade, targeting $14 – $15. 

The gap goes up to $20, so if the momentum and volume persist, my target area might be updated if the trade plays out according to plan.


Jeff Williams

Jeff Williams is a full-time day trader with over 15 years experience. Thousands of entry-level and experienced traders alike – day-traders and swing-trade small cap stock traders – credit Jeff with guiding them to turning small accounts into big accounts.

Jeff’s "Small Account Challenge" shows people how to transform accounts from a few thousand dollars into $25k, $50k or even $100k.

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