Archive for Stock Market News

Futures up after drop in first session of second quarter

By IFCMarkets

US stocks drop amid weak data

US stock market retreat continued on Tuesday with weak data providing little support for market sentiment as investors wonder when the US can return to usual business. Uncertainty about how long the shutdown may last increased as President Trump warned that a “very, very painful” two weeks lied ahead for the country. The S&P 500 lost 4.4% to 2470.50. The Dow Jones industrial average fell 4.4% to 20943.51. Nasdaq slumped 4.4% to 7360.58. The dollar weakening halted as the Institute for Supply Management reported US manufacturing index fell to 49.1 in March from 50.1 in February when a drop to 44.9 was forecast. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rebounded 0.5% to 99.52 but is lower currently. Futures point to higher market openings today.

CAC 40 led European indexes slump

European stocks extended losses on Wednesday with risk appetite getting little boost from weak economic data. The GBP/USD joined EUR/USD’s accelerated sliding yesterday, with Pound reversing higher currently. The Stoxx Europe 600 ended down 3% led by travel/leisure shares as euro zone manufacturing purchasing managers’ index fell again in March, hitting a 92-month low of 44.5. Germany’s DAX 30 lost 3.9% to 9544.75. France’s CAC 40 dropped 4.3% while UK’s FTSE 100 slumped 3.8% to 5454.57.

Australia’s All Ordinaries Index leads Asian indexes slump

Asian stock indices are mixed today after another down session on Wall Street overnight following President Trump’s warning as many as 240,000 Americans might die of the coronavirus. Nikkei fell 1.4% to 117818.72 despite resumed yen sliding against the dollar. Markets in China are rising: Shanghai Composite Index is 1.7% higher while Hong Kong’s Hang Seng Index is up 0.6%. Australia’s All Ordinaries Index however slumped 2.0% as Australian dollar resumed climbing against the greenback.

Brent jumps after Trump says Russia-Saudi disagreement can be resolved

Brent futures prices are rebounding today after president Trump said about Russia and Saudi Arabia disagreement on output reduction “I have confidence in both that they’ll be able to work it out”. Prices fell yesterday as the Energy Information Administration reported US crude oil inventories rose by bigger than expected 13.8 million barrels last week, tenth weekly rise in a row: June Brent dropped 6.1% to $24.74 on Wednesday.

Brent plunges below MA(200) 3/31/2020 Market Overview IFC Markets chart

Gold edges up on weaker Dollar

Gold prices are edging higher today after a retreat on Wednesday. June gold price of an ounce of gold slipped 0.3% to $1591.40 on Wednesday.

Market Analysis provided by IFCMarkets

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Kiniksa Shares Trade Up 30% on COVID-19 Pneumonia and Hyperinflammation Treatment

By The Life Science Report

Source: Streetwise Reports   03/31/2020

Shares of Kiniksa Pharmaceuticals traded higher after the company reported early success in treatment response for mavrilimumab in six patients with severe COVID-19 pneumonia and hyperinflammation.

This morning, Hamilton, Bermuda based biopharmaceutical company Kiniksa Pharmaceuticals Ltd. (KNSA:NASDAQ) announced “early evidence of treatment response with mavrilimumab, an investigational fully-human monoclonal antibody that targets granulocyte macrophage colony stimulating factor receptor alpha (GM-CSFRα), in a treatment protocol in patients with severe coronavirus 2019 (COVID-19) pneumonia and hyperinflammation.”

The company advised that “the treatment protocol was conducted by Professor Lorenzo Dagna, MD, FACP, Head, Unit of Immunology, Rheumatology, Allergy and Rare Diseases IRCCS San Raffaele Scientific Institute and Vita-Salute San Raffaele University in Milan, Italy, within a COVID-19 Program directed by Professor Alberto Zangrillo, Head of Department of Anesthesia and Intensive Care of the Scientific Institute San Raffaele Hospital and Professor in Anesthesiology and Intensive Care, Università Vita-Salute San Raffaele.”

The firm stated that the treatment protocol tested the investigational drug mavrilimumab in an interventional, single-active-arm pilot experience. “Patients suffering from severe pulmonary involvement of COVID-19, acute respiratory distress, fever, and clinical and biological markers of systemic hyperinflammation status​ were treated with a single intravenous dose of mavrilimumab with the objective of reducing incidence of progression of acute respiratory failure, the need of mechanical ventilation, and the transfer to the intensive care unit.”

The company noted that so far six patients have been treated with mavrilimumab using the treatment protocol and that mavrilimumab has been well-tolerated. The firm reported that all of the patients showed an early resolution of fever and improvement in oxygenation within 1-3 days and none of the patients’ conditions progressed to require mechanical ventilation.

Professor Dagna commented, “Patients with COVID-19 die of a devastating pneumonia caused by a hyperinflammation syndrome…Last week my team administered mavrilimumab to 6 patients who were experiencing a steep decline of pulmonary status due to COVID-19 pneumonia. All patients responded on treatment, and 3 out of the 6 patients were discharged within 5 days. The data are compelling, and I look forward to continued studies of mavrilimumab in COVID-19.”

The company’s Chief Medical Officer John F. Paolini, MD, PhD, remarked, “These data are the first reported evidence of early treatment response with GM-CSF antagonism in COVID-19…By blocking GM-CSF signaling, mavrilimumab works upstream of interleukin-6 and potentially addresses the underlying pathophysiology of the hyperinflammation which may be responsible for the severe pneumonia of COVID-19. Controlled clinical studies are required to fully characterize the potential of mavrilimumab in this disease. Building upon our activities over the last several weeks, we continue to evaluate the data and next steps, including a potential Phase 2/3 clinical development program.”

The company explained that mavrilimumab has not yet been approved for any indication in any country and described mavrilimumab as “an investigational fully-human monoclonal antibody that is designed to antagonize GM-CSF signaling by binding to the alpha subunit of the GM-CSF receptor (GM-CSFRα).” The company listed that the lead indication for mavrilimumab is giant cell arteritis which is an inflammatory disease of medium-to-large arteries. The firm advised that mavrilimumab was safely dosed and met primary endpoints in Phase 2b clinical studies in Europe of more than 550 patients suffering from rheumatoid arthritis.

Kiniksa Pharmaceuticals is focused on discovering, acquiring, developing and commercializing therapeutic medicines for patients suffering from debilitating autoinflammatory and autoimmune diseases with significant unmet medical need. Kiniksa’s pipeline of product candidates across various stages of development include Rilonacept for the potential treatment of recurrent pericarditis; Mavrilimumab for the potential treatment of giant cell arteritis; KPL-716 for the potential treatment of a variety of pruritic diseases, including prurigo nodularis, a chronic inflammatory skin condition; and a few others.

Kiniksa Pharmaceuticals has a market capitalization of around $678.8 million with about 55.55 million outstanding shares. KNSA shares opened nearly 37% higher today at $16.74 (+$4.52, +36.99%) over the yesterday’s closing price of $12.22. The stock has traded today between $14.52 and $17.46 per share and currently is trading at $15.43 (+$3.21, +26.27%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

( Companies Mentioned: KNSA:NASDAQ,
)

Weakness Appears To Be Setting For This Weeks Economic Data

By TheTechnicalTraders 

– As the world reacts to the global economic slowdown because of the COVID-19 virus event and the massive stimulus programs and central bank efforts to support the global economy, investors still expect weakness in the US and foreign markets.  We believe this expected weakness will not subside until news of a proper resolution to this virus event is rooted in the minds of investors and global markets.

Hong Kong and China are currently concerned about experiencing a “third wave” of the COVID-19 virus within their society.  As the economies open back up to somewhat normal, people are very concerned that a renewed wave of new infections will suddenly appear and potentially result in another shut-down event or infectious cycle?  We believe all nations are watching what is happening in Hong Kong and China as they attempt to reopen their economies.

The rest of the world is still battling the rising infection rates and dealing with the economic shutdowns that have brought the global economy to its knees.  Europe, Japan, Canada, and the US are all experiencing vast disruptions to their economies and commodity prices and demand expectations are collapsing as a result.

Nearly a week ago, we issued a research article that suggested our proprietary Fibonacci Price Modeling tool’s key resistance levels may become a very valid ceiling for any price recovery.  It appears this is happening in the markets as the NQ Daily chart, below, shows.

Before you continue, be sure to opt-in to our free market trend signals 
before closing this page, so you don’t miss our next special report!

Daily Nasdaq (NQ) Chart

The NQ resistance level, near 7880, has acted as a soft ceiling in the NQ over the past 4+ trading days.  Today, the NQ briefly rallied above this level, then rotated downward below this level again to confirm this key resistance level.  We believe this critical Fibonacci resistance level may continue to act as a price ceiling over the next few trading days and push prices lower as economic news and expectations hit the news this week and next.

The next downside price target for the NQ is 6565 – new price lows.

If you have not seen this important technical analysis on the Nasdaq which I posted a couple of days ago, be sure to see these charts.

SP500 (ES) Weekly Chart

This ES Weekly chart illustrates another key resistance level near 2679.  Although the ES price has not rallied up to reach this critical Fibonacci resistance level, we still believe this level is acting as a price ceiling and that the ES will weaken as future expectations are confirmed by earnings data, economic data and other collateral damage to the global economy.

We are still very early in understanding the total scope of this virus event.  The US and other global central banks are attempting to front-run any weakened expectations as a result of this virus event.  We continue to believe the extended collateral damage to the consumer, business and other aspects of the economy are yet to come.  Most recently, consumer delinquencies have begun to skyrocket and the news is being printed about landlords and renters being unable to satisfy obligations on April 1st.

This is part of the reason why we believe further caution is warranted at this time in the markets. We issued an Important Trade and Investment Alert Yesterday.

Our research team believes a deeper price low will likely set up over the next 30+ days to establish a true price bottom.  As we’ve warned, we believe extended collateral damage to the US and global economy will soon become better understood and the extended shutdown of the US and other economies only manages to complicate any positive expectations for a bottom.

We believe a deeper price low will set up within the next 30+ days and we urge skilled traders to pay attention to the broader expectations of the markets.  Earnings data and other economic data will continue to stream into the news centers over the next 30+ days.  Don’t get too aggressive with trying to buy a bottom in the markets just yet.  Be patient and wait for the markets to show you when the bottom has really setup.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for short-term swing traders.

I hope you found this informative, and if you would like to get a pre-market video every day before the opening bell, along with my trade alerts visit my Active ETF Trading Newsletter. If you are a long-term investor looking for signals when to own equities, bonds, or cash, be sure to look into my Long-Term Investing Signals.

Ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.

Chris Vermeulen
Chief Market Strategist
TheTechnicalTraders.com

 

Stocks: When Grass Looks Greener on the Other Side of the … Pond

By Elliott Wave International

Let’s start by establishing that the stock market is not driven by the news. Aggregate stock prices are driven by waves of optimism and pessimism — which go from one extreme to another — as reflected by the Elliott wave model. That’s what makes the stock market predictable.

Hence, Elliott wave analysis is at the core of EWI’s stock market forecasts.

Having said that, sentiment indicators are also valuable in providing clues about “what’s next.”

For example, Robert Prechter’s book, Prechter’s Perspective, made this observation:

No crowd buys stocks of other countries intelligently. For decades, heavy foreign buying in the U.S. stock market has served as an excellent indicator of major tops.

Well, in the year 2000, that’s exactly what happened. Foreign purchases of U.S. shares spiked to a then record $402 billion in March 2000. The spike in foreign buying coincided precisely with a price peak in the S&P 500. From the month of the high in March 2000 through October 2002, the S&P declined 51%.

Fast forward to December 2019, when our Elliott Wave Financial Forecast showed two charts related to overseas buying of U.S. shares. Here’s the first one:

This chart notes our discussion about foreign buying in the year 2000 and also in August 2007: “The first five months of [2007] produced what was easily the biggest gusher of net foreign buying in history. The record suggests that falling prices lie directly ahead for the U.S. market.”

The historic stock market top of 2007 occurred just two months later.

Here’s the second chart from the December 2019 Elliott Wave Financial Forecast, along with the commentary:

The chart of foreign holdings of U.S. stocks shows a new record of $7.7 trillion in total stock holdings as of July [2019]. On November 7, The Wall Street Journal reported that the “appetite for U.S. shares among international clients has shown few signs of abating.” Foreigners are all in on the U.S. stock market rally. Our bet is that it will end in a major top just as it did in 2000 and 2007.

Plus, the Elliott wave model was also indicating that the stock market top was approaching. The Jan. 2020 Elliott Wave Financial Forecast noted:

The rally is the final [wave] of the bull market.

The February 2020 stock market top occurred just a month later.

As you know, historic stock market volatility has unfolded since then. Interestingly, during highly emotional markets — such as what investors face now — Elliott waves tend to be clear.

So, now is the ideal time to learn all you can about the Elliott wave method of analyzing and forecasting financial markets.

You can do so free!

You see, when you signup for a free Club EWI membership, you get instant, free access to the online version of the book, Elliott Wave Principle: Key to Market Behavior, by Frost & Prechter. You can have this Wall Street classic on your computer screen in just moments!

US stock market awaits labor market data and corporate reporting

By IFCMarkets

US stock market down

On Tuesday, US stock quotes fell. The S&P 500 index rebounded by 21% from its minimum on March 23. This movement was part of a technical correction to the 2nd Fibonacci level after a drop of 35% from the February highs. Some fundamental reasons are needed for a further growth. Investors are not yet willing to take risks and, most likely, will wait for corporate reporting for the 1st quarter of 2020, which will be published in the United States starting next week. This week important data on the US labor market and the employment rate (Non-farm Payrolls) for March will be released on Friday. It is expected to be the worst since June 2010 (-100 thousand jobs). The S&P 500 (-1,6%), Nasdaq (-0,95%) and Dow Jones Industrial Average (1,84%) fell yesterday. Now their futures are traded with a noticeable decrease (-3%). For the 1st quarter of 2020, the S&P 500 index fell by almost 20%, which was the most significant quarterly decline since 1987. The main reason for this was the Covid-19 pandemic. The top losers yesterday were utility companies and the real estate sector. Shares of energy companies have grown thanks to a statement by US President Donald Trump about negotiations with Russia and Saudi Arabia regarding the oil production regulation. On Tuesday, the turnover of US exchanges was 13.1 billion shares. This is less than the 20-day average of 15.7 billion shares. Today the business activity indexc for March (ISM Manufacturing) and Construction Spending for February will be released in the US. The ICE US dollar index rose today, no positive news was there for it. So far, this looks like a technical correction after the powerful collapse caused by the Fed statement last week about allocating $ 2 trillion to help the US economy.

European stock indices continue to decline today

European stocks fell yesterday. German labor market data for March turned out to be worse than the forecasts. Citigroup Bank predicts a 1.6% drop in global GDP in 2020 and a 50% reduction in dividends from European companies. Earlier, the ECB allowed European banks not to pay dividends at all and to direct funds to increase own capital. A similar statement was made by the Bank of England. Today, shares of the British bank HSBC fell by 9%. The pan-European stock index EU STOXX 50 continued to fall. This was facilitated by the decline in the economic indicator of the business activity in the Eurozone industrial sector (IHS Markit’s manufacturing) in March to a minimum since 2012. At the same time, manufacturing PMI in Italy fell to an 11-year low. A significant negative factor was the continued growth of patients with coronavirus in Europe. Today EUR / USD quotes are falling for the third day in a row amid weak macroeconomic statistics and an increase in the number of patients with coronovirus in the main European countries.

01/04/2020 Market Overview IFC Markets chart

Nikkei has been declining for the second day in a row along with other world indices

All Asian indices are mostly down today. The Australian S & P / ASX 200 index rose in anticipation of a recovery in oil and other commodity prices. Nikkei fell 4.5% amid weak macroeconomic data. Indicators Nikkei Japan PMI Manufacturing and Tankan Large Manufacturing fell to their lows since 2013. However, it’s worth noting that they were still better than preliminary forecasts. Goldman Sachs Bank lowered its total operating profit forecast for 7 largest automakers by 22% this year. Shares of Toyota Motor fell by almost 3%. Hang Seng lost 2.3% today.

Brent recorded a new low today

Brent futures quotes today were falling below $ 25 per barrel. Thus, market participants have not yet responded to a statement by US President Donald Trump about his negotiations with the leaders of Russia and Saudi Arabia about the need to coordinate oil production amounts and stabilize prices. Data on a significant increase in US oil reserves by 10.5 million barrels per week turned out to be more important to investors. This is much more than the forecast of 4 million. Note that the consensus forecast of analysts for the Brent average price for the entire 2020 is now $ 37.7 per barrel. This is lower than the actual average price since the beginning of the year (for 3 months), which for now is equal to $ 47.2, but noticeably higher than current quotes. The main reason for the decrease in world oil prices is a fall in demand against the background of quarantine due to the Covid-19 pandemic in almost all countries of the world.

Market Analysis provided by IFCMarkets

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Abbott Labs Launches Point-of-Care Diagnostic Tool that Can Detect COVID-19 in 5 Minutes

By The Life Science Report

Source: Streetwise Reports   03/30/2020

Shares of Abbott Laboratories opened 11% higher after the company reported that its ID NOW™ molecular point-of-care test to detect novel coronavirus will be available starting this week with plans to quickly ramp up production to deliver 50,000 tests per day.

Abbott Laboratories (ABT:NYSE) announced Friday that “the U.S. Food and Drug Administration has issued Emergency Use Authorization for the fastest available molecular point-of-care test for the detection of novel coronavirus (COVID-19), delivering positive results in as little as five minutes and negative results in 13 minutes.” The company advised that the test will run on its proprietary ID NOW™ platform and will be able to deliver very quick results in a complete range of healthcare provider locations including field emergency checkpoints, urgent care clinics, hospital emergency departments and doctors’ offices.

The firm noted that the ID NOW platform is small, lightweight and portable device that utilizes molecular technology to produce test results with high degrees of accuracy. The company indicated that the device is about the size of a toaster and only weighs about 6.6 pounds and added that its ID NOW platform is presently the most widely available molecular point-of-care testing platform in the U.S.

The company’s President and COO Robert B. Ford commented, “The COVID-19 pandemic will be fought on multiple fronts and a portable molecular test that offers results in minutes adds to the broad range of diagnostic solutions needed to combat this virus…With rapid testing on ID NOW, healthcare providers can perform molecular point-of-care testing outside the traditional four walls of a hospital in outbreak hotspots.”

The firm advised that it is working with the government to deploy tests to areas where they can have the greatest impact and it will be making ID NOW COVID-19 tests available this week to U.S. healthcare providers in urgent care settings where the majority of ID NOW instruments are currently in use.

The firm described its ID NOW molecular platform, which it first introduced in 2014, as “the leading molecular point-of-care platform for Influenza A & B, Strep A and RSV testing in the U.S.” The company stated that “the ID NOW COVID-19 test comes a week after the company launched its Abbott m2000™ RealTime SARS-CoV-2 EUA test, which runs on the m2000™ RealTime System located in hospital and reference labs around the world.” The company indicated that together for both platforms combined it expects to manufacture around 5 million tests per month.

Abbott is headquartered in Abbott Park, Ill., and is a global healthcare provider of diagnostics, medical devices, consumer nutritionals and branded generic medicines. The company employs more than 107,000 people and distributes its products to more than 160 countries.

Abbott Labs has a market capitalization of around $131.5 billion with approximately 1.763 million shares outstanding. ABT shares opened 11% higher today at $82.83 (+$8.27, +11.09%) over Friday’s $74.56 closing price. The stock has traded today on more than three times average volume between $78.47 and $84.40 per share and is currently trading at $80.33 (+$5.77, +7.74%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

( Companies Mentioned: ABT:NYSE,
)

Nd100 Analysis: Government assistance supported stock markets

By IFCMarkets

Government assistance supported stock markets

As a rule, the high-tech Nasdaq100 index possesses increased volatility and is the first to respond to news. Earlier, the largest international banks announced very pessimistic forecasts of a decline in the US GDP, which were taken into account in stock prices. In particular, JPMorgan Bank expects the US economic downturn in the 1st quarter up to 10.5% in annual terms and another 25% in the 2nd quarter. The amount of government assistance of $ 2 trillion is just about 10-11% of the annual US GDP and can help corporations survive the crisis caused by the coronavirus epidemic. Theoretically, the 2nd quarter for the US economy may not be as bad as previously expected. An additional positive factor may be a decrease in world oil prices. The value of West Texas Intermediate (WTI) dropped to $ 20 per barrel, the lowest since 2002. This will help reduce the costs of the American economy. Another good factor is the Fed’s policy of lowering rates and an almost unlimited supply of liquidity. US GDP data for the 1st quarter will be released only at the end of April. Non-farm Payrolls employment rate for March, which may affect the dynamics of the Nd100, will be published this Friday.

Indicator VALUE Signal
RSI Buy
MACD Buy
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

 

Summary of technical analysis

Order Buy
Buy stop Above 7910
Stop loss Below 6610

Market Analysis provided by IFCMarkets

The Selloff Structure Explained – Fibonacci On Deck

By TheTechnicalTraders 

– Many traders become very emotional when the markets turn Bearish and fail to properly understand that price structure is still driving market price movement.  This morning, I highlighted this structure to my subscribers attempting to alert them to the possibility that the markets could recover moderately over the next 3 to 5+ days attempting to set up the next “waterfall” downside price event.

On January 29, 2020, I posted a research article detailing my belief that a “waterfall” type of event was setting up in the markets.  This article was nearly 30 days prior to the peak in the markets.  It explained how events take place and how markets tend to develop a moderate recovery phase between selloff price declines.

January 29, 2020: ARE WE SETTING UP FOR A WATERFALL SELLOFF?

Skilled traders should notice the size and levels of each selloff event in the chart (above) and pay very close attention to how price initially collapsed from the peak, then recovered nearly 50% in early and late November before finally setting up a deeper waterfall price collapse in early December.

Our research team believes the US stock markets may attempt something similar over the next 3 to 5+ days as the Covid-19 economic outcome continues to process through the global markets.

The US and other Central Banks have taken broad steps to attempt to overcome the negative economic outcomes related to the Covid-19 global shutdown.  Their biggest concern is that consumer activity could diminish and banking/credit firms could come under severe pressures because of a consumer collapse.

There are over 35 million US low-wage jobs that may become at-risk because of the Covid-19 virus event.  We believe the true economic contagion of the global virus event may now be known until well into April or May 2020.  Yet we believe these at-risk, low-wage jobs are prevalent throughout the globe and foreign nations, such as Asia and Europe, may experience a similar consumer economic contagion over the next 6+ months.

Before you continue, be sure to opt-in to our free market trend signals 
before closing this page, so you don’t miss our next special report!

We believe the data related to the Covid-19 economic crisis will not fully be known until well into April or May 2020.  Because of this, we believe the US stock markets may recover to levels near the 50% Fibonacci Retracement levels on these charts before attempting a series of further downside price moves.  Skilled traders should not become overly emotional right now and pay attention to the structure of the price action as well as other technical conditions in play at the moment.  Our objective is to execute trades with a highly targets success rate – not to trade on emotions.

SPY Daily Chart

This SPY Daily chart shows the SPY would only need to rally 18.70 points to reach the 50% Fibonacci retracement level on this chart.  This could happen very quickly given how close the price actually is to this key Fibonacci level.  If that were to happen over the next 3 to 5+ trading days, the downward sloping price channels from our TTCharger modeling system would move lower to meet price near 278 – which would set up a new resistance zone and possibly a new wave of selling.

INDU Daily Chart

This INDU Daily chart shows the Dow Jones would have to rally about 2025 points (to levels near 23,886) to reach the 50% Fibonacci Retracement target.  If this were to happen, the sloping price channels on this chart would likely move lower to meet price near this 50% target level – presenting a very clear resistance zone for a new wave of selling to begin.

Remember, it is not about emotions or attempting to try to force the markets to adopt your “belief”.  Skilled traders attempt to identify risks, opportunities and realistic technical setups that allow them to objectively determine where and when the markets are providing a real opportunity for success.

We may be just a few days away from the next major wave of selling, yet any trader who jumped into an emotional trader over the past 5+ days expecting the markets to continue to break down is likely under a fair amount of stress right now.  Learn to read the charts and the structure of price more effectively and you’ll find the answers are already on the charts in front of you.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for short-term swing traders.

If you are a more active trader and swing trader visit my Active ETF Trading Newsletter. If you are a long-term investor looking for signals when to own equities, bonds, or cash, be sure to look into my Long-Term Investing Signals.

Ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.

Chris Vermeulen
Chief Market Strategist
Founder of Technical Traders Ltd.
TheTechnicalTraders.com

Markets rebound on smallest new cases increase in Italy

By IFCMarkets

Dow books 690-point gain

US stock market rebounded on Monday as World Health Organization indicated the smallest increase in COVID-19 cases in two weeks were recorded in Italy. Overnight President Trump extended social-distancing guidelines through April 30. The S&P 500 rose 3.4% to 2626.65. Dow Jones industrial advanced 3.2% to 22327.48 as gains in Johnson & Johnson and UnitedHealth offset hefty Boeing loss. The Nasdaq gained 3.6% to7774.15. The dollar weakening reversed as the National Association of Realtors data showed pending home sales jumped 9.4% year over year in February: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, recovered 0.8% to 99.04 and is higher currently.The President said Monday the US death rate was likely to peak in two weeks and the country would be “well on our way to recovery” by early June. Futures point to higher market openings today.

DAX 30 led European indexes rebound

European stocks rebounded on Monday. Both EUR/USD and GBP/USD reversed climbing yesterday with both pairs lower currently. The Stoxx Europe 600 index advanced 1.1% led by chemicals and healthcare shares supported by report euro-zone’s economic sentiment index fell less than expected in March. The DAX 30 rose 1.9% to 9815.97 as German annual inflation declined less than expected in March. France’s CAC 40 added 0.6% and UK’s FTSE 100 gained 1.0% to 5563.74.

Asian indexes mixed

Asian stock indices are mostly higher today following the rebound on Wall Street overnight. Nikkei however lost 0.9% to 18917.01 despite resumed yen decline against the dollar. Markets in China are rising as authorities reported China’s manufacturing activity and service sector bounced back stronger than expected in March: the Shanghai Composite Index is up 0.1% and Hong Kong’s Hang Seng Index is 1.1% higher. Australia’s All Ordinaries Index pulled back 2% as Australian dollar’s climb against the greenback continued.

Brent rebounds

Brent futures prices are edging higher after a sharp drop on Monday. Prices tumbled yesterday on sharp fall in demand as countries implemented quarantine /lockdown measures: May Brent crude closed 8.7% lower at $22.76 a barrel on Monday, dropping 55.5% for the month.

Brent plunges below MA(200) 3/31/2020 Market Overview IFC Markets chart

Gold retreats as Dollar resumes strengthening

Gold prices are slipping today. April gold slid 0.2% to $1622 an ounce on Monday.

Market Analysis provided by IFCMarkets

Note:
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Eton Pharma Shares Climb 20% After Firm Secures US Rights for Pediatric Kidney Disease Drug

By The Life Science Report

Source: Streetwise Reports   03/27/2020

Shares of Eton Pharmaceuticals traded higher after the company reported that it has acquired U.S. marketing rights to pediatric orphan drug Alkindi® Sprinkle from Diurnal Group Plc.

Eton Pharmaceuticals Inc. (ETON:NASDAQ), which is focused on developing and commercializing injectable and pediatric oral liquid products, today announced that “it has acquired U.S. marketing rights to Alkindi® Sprinkle from Diurnal Group Plc (DNL:AIM).”

The company indicated that “Alkindi Sprinkle’s New Drug Application is currently under review with the U.S Food and Drug Administration (FDA) for approval as a replacement therapy for pediatric adrenal insufficiency (AI), including congenital adrenal hyperplasia (CAH) in patients from birth to less than 17 years of age and that the application has been assigned a Prescription Drug User Fee Act date of September 29, 2020.”

The company’s CEO Sean Brynjelsen commented, “Alkindi Sprinkle represents a transformational acquisition for Eton and a major step forward on our journey to become a leader in pediatric rare disease products. This product represents the largest market opportunity within our pipeline and adds a major near-term product launch…We are excited to be partnering with Diurnal to bring Alkindi Sprinkle to pediatric patients, and we plan to immediately begin launch activities to ensure its commercial success.”

Martin Whitaker, CEO of Diurnal Group Plc, remarked, “We have been impressed by Eton’s enthusiasm and vision for the product throughout the Alkindi Sprinkle partnering process…If approved, Alkindi Sprinkle will provide a major breakthrough in the U.S. as the only licensed treatment specifically designed for use in children with adrenal insufficiency, where there is a significant unmet patient need.”

The company stated that its leadership position in pediatric rare diseases products makes Alkindi Sprinkle a strong strategic fit with its current pediatric portfolio. The firm advised that it believes this product represents a $100 million market opportunity. The company estimates that approximately 5,000 pediatric patients suffer from adrenal insufficiency in the U.S. and noted that “current FDA-approved treatment options do not offer physicians the ability to properly dose and titrate for many of these pediatric patients.”

The company explained that Alkindi Sprinkle is a taste neutral sprinkle granule formulation of hydrocortisone and added that if approved it would be the first AI replacement therapy specifically designed and developed for children. The firm defined AI as a condition in which the adrenal glands do not produce adequate amounts of cortisol, which is often caused by Addison’s Disease or CAH. The firm reported that the FDA has granted Alkindi Sprinkle Orphan Drug Designation and the drug was approved in Europe in 2018 under the trade name Alkindi and has been launched in several countries there.

The license agreement terms included an immediate cash payment by Eton to Diurnal in the amount of $3.5 million. In addition, Eton issued Diurnal 379,474 shares of its common stock, representing approximately $1.5 million based on Eton’s average fifteen-day trailing stock price. The firm noted that “upon commercial launch of the product with Orphan Drug Exclusivity granted, Eton will pay Diurnal an additional cash milestone payment of $2.5 million.”

The company reported that “in conjunction with the Alkindi Sprinkle transaction, it has executed agreements to raise $7.8 million from the sale of 2.6 million shares of common stock at $3.00 per share and that the equity financing was led by Opaleye Management.” The company also stated that it amended its credit line to draw $2 million of debt financing with the option to draw an additional $3 million and that the proceeds will be used to support current and future licensing payments to Diurnal, as well as Alkindi Sprinkle-related commercial launch expenses.

Eton Pharmaceuticals is a specialty pharmaceutical company based in Deer Park, Ill., that focuses on acquiring, developing and commercializing high-value innovative products. The company mentioned that it is primarily focused on hospital injectable and pediatric oral liquid products. The company stated that its first commercial product Biorphen, which was launched in December 2019 is the only FDA approved ready-to-use formulation of phenylephrine injection. The firm indicated that it has eight other products in development including three that are currently under FDA review.

Diurnal Group is headquartered in the U.K. and is a specialty pharmaceutical company developing medicines for treatment of chronic endocrine conditions including CAH and AI.

Eton Pharmaceuticals began the day with a market capitalization of around $59.5 million with approximately 17.88 million shares outstanding. ETON shares opened 5% higher today at $3.51 (+$0.18, +5.41%) over yesterday’s $3.33 closing price. The stock has traded today between $3.44 and $4.87 per share and at present is trading at $4.07 (+$0.74, +22.22%).

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( Companies Mentioned: ETON:NASDAQ,
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