Archive for Stock Market News

Risk-On Train Gathers Momentum

By Lukman Otunuga, Research Analyst, ForexTime

Risk-on remains the name of the game as investors across the globe soak up all the good news!

A raft of positive vaccine developments, better-than-expected U.S economic data and much-needed clarity on the formal transition of leadership to president-elect Joe Biden have elevated investor sentiment. The current mood across markets is so positive that global equities are on course for their best month on record with the Dow Jones Industrial Average breaking through 30,000 for the first time.

It did not end here. The S&P 500 recorded a record close, rising 1.6% to 3,635.41 while the Nasdaq Composite added 1.3% to finish its trading day at 12,036.79. Stocks in Asia jumped on Wednesday amid the risk-on mood and this infectious optimism may support European markets later in the morning.

With global equities bulls dominating the scene and all the encouraging news stimulating appetite for riskier assets, what could possibly go wrong as 2020 slowly comes to end? Well…surging coronavirus cases across Europe and the United States remain key themes that continue to strain risk sentiment. In the United States, Democrats and Republicans have been at a stalemate for months over a new stimulus package – this could rollover into 2021. While markets may push higher in the short term, the medium to longer-term outlook remains clouded by COVID-19 & U.S. stimulus stalemate.

Enough of the fundamentals, it’s time for some technicals and potential trading setups.

Dollar Index wobbles above 92.00.

The title says it all. There is no love for the Dollar thanks to the improving market mood. A solid daily close below 92.00 could open the doors towards 90.

EURUSD presses against 1.1900

The EURUSD is trading marginally below the 1.1900 resistance level. A solid breakout above this point may spark a move towards the 1.2000 support level.

GBPUSD firmly bullish above 1.3300

Pound bulls remain in control above the 1.3300 support level. A solid breakout above 1.3400 could open the doors towards 1.3482.

Gold crashes into $1800 support

After many weeks of trading within a wide range, Gold has broken below the $1850 support level. Prices are heavily bearish with all eyes on the psychological $1800 level. A solid breakdown below this point could trigger a selloff towards $1760. If $1800 proves to be reliable support, prices are likely to rebound towards $1815 and $1850.

S&P 500 bulls in the driving seat

The S&P 500 has scope to push higher if the 3550 higher low proves to be a reliable support level. Prices are trading above the 20 SMA while the MACD trades to the upside. It will be interesting to see whether the Index will hit a fresh all-time high.

Bitcoin tops $19,000

Who let the Bitcoin bulls out? The cryptocurrency has risen above $19,000 for the first time in nearly three years! This is less than $1000 away from its all-time high. Given how prices were trading below $5,000 as recently as March, bulls deserve a pat on the back. A solid weekly close above $19,000 could open the doors back to all-time highs.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


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ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Dow: I love you 30,000

By Han Tan, Market Analyst, ForexTime

Last week, I wrote about how a Dow Jones index that reads above 30,000 was a matter of when, not if.

That day has now arrived.

The Dow posted a closing price above the 30,000 mark for the first time in its history on Tuesday. And with stock futures pointing north at the time of writing, there could be more gains to be had in Wednesday’s session, before US markets close for Thanksgiving on Thursday.

 

The gains in US equities were powered by stocks in the energy and financial sectors, as investors stuck to the US economic reopening theme, prompting the S&P 500 to also post a new record high.

 

Risk assets have clearly been heartened by positive developments on key fronts: a surer transition for the US Presidency, a dovish US Treasury Secretary waiting in the wings, and a third Covid-19 vaccine supplier that’s closer to rollout.

Such headlines have only emboldened traders to flock to the markets, bucking the sleepy trend that’s typically associated with this time of the year. US exchanges have seen 13 billion shares being traded per day so far this week, which is a whopping 75 percent more volume compared to the same period in 2019! Looks like the shopping spree isn’t limited to Christmas stocking stuffers this year.

As long as the narrative surrounding the vaccine-enabled global economic recovery isn’t derailed, along with the Fed’s ultra-accommodative stance staying intact, that ensures that this rally has more room to run going into 2021. The FXTM Trader’s Sentiments are net long on the US SPX 500 (Mini).

Dollar in the doldrums?

The Dollar index (DXY) will also be in focus today, amid a slew of US economic data. Before investors can dig into servings of freshly-carved Turkey meat and stuffing, they must first digest the latest US weekly jobless claims, October personal spending, and the second reading of Q3 GDP, all to be released on Thanksgiving-eve. Further signs of an economic recovery that could meaningfully boost US inflationary pressures could send the DXY below the psychologically-important 92.0 level, with the September low of 91.74 next in its sights.

 

Then there’s the latest FOMC meeting minutes as well, also due on Wednesday. Investors will be eyeing how the Fed intends to boost its support measures for the world’s largest economy, with such a decision potentially arriving at the central bank’s meeting in December. Should investors get a stronger whiff of more incoming stimulus, that could fuel more gains for riskier assets while prompting safe haven assets such as the US Dollar to explore more of its downside.

 

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

SolarWindow Shares Heat Up 34% as Firm Develops High-Speed Production of Electricity-Generating Flexible Glass

Source: Streetwise Reports   11/23/2020

Shares of SolarWindow Technologies reached a new 52-week high after the company reported it has created the “first-ever” electricity-generating flexible glass using a high-speed manufacturing process.

Developer of transparent solar electricity generating coatings SolarWindow Technologies Inc. (WNDW:OTC) today announced that “for the first time ever, the company has successfully produced its electricity-generating flexible glass using roll-to-roll processing, a high-speed method typical to commercial manufacturing of tinted window films, digital displays, printed electronics and semiconductors.”

The firm indicated that the flexible sheets of SolarWindow™ electricity-generating glass are as thin as a business card. These sheets have the capability to generate power from both sunlight and indoor artificial light and are now being developed to electrify windows along with otherwise passive surfaces that can be incorporated into commercial buildings, vehicles, marine watercraft, aerospace and other products.

SolarWindow Technologies’ Chairman and CEO Jay S. Bhogal commented, “The world’s leading manufacturers use roll-to-roll production, an innovative process successfully demonstrated by the SolarWindow team today. Importantly, this roll-to-roll processing marks a significant advancement in our mission to enable commercial manufacturing in the U.S. and Asia.”

The company stated that this news comes at an opportune time as it has recently made several strategic hires and is expanding its operations to Asia by establishing a new office in Seoul, South Korea. The firm advised that the move to open the office in Seoul is driven by the need to gain access to the region’s many advanced-technology manufacturers of next-generation building materials, commercial transportation systems, electric vehicles and electronics. The company believes that all of these areas offer great potential and are a natural fit for its proprietary LiquidElectricity™ coatings for films, glass, and plastics utilizing employing high speed roll-to-roll processing.

SolarWindow stated that this manufacturing breakthrough was achieved when multiple layers of its LiquidElectricity™ coatings were applied to ultra-thin flexible glass. The layers then underwent a manufacturing process using precision lasers and a roll-to-roll system. The company noted that the controls improve the power and performance of its SolarWindow™ electricity-generating glass and also increase efficiency, lower costs and reduce material waste.

SolarWindow Technologies described itself as “a developer of transparent LiquidElectricity™ coatings that generate electricity when deposited onto glass or plastic.” The company explained that its coatings generate electricity, producing power under natural, artificial, low, shaded and reflected light conditions and are designed and engineered to be applied to ordinary glass on balcony railings and facades, curtain walls, skylights and other surfaces and can additionally be deployed in autos, trucks, ships and aircraft.

SolarWindow began the day with a market capitalization of around $243.6 million with approximately 53 million shares outstanding. WNDW shares opened nearly 9% higher today at $5.00 (+$0.40, +8.70%) over Friday’s $4.60 closing price and reached a new 52-week high this morning of $6.60. The stock has traded today between $4.75 and $6.60 per share and is currently trading at $6.17 (+$1.57, +34.13%).

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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Financial Sector ETF Shows Unique Island Setup – What Next?

By TheTechnicalTraders 

– One would think the Financial Sector would be doing quite well related to the booming housing market and a decline in overall consumer debt and delinquency levels.  Historically, the XLF chart shows that $32 is very close to the 2007 peak levels before the collapse that started in late 2007.  Currently, the February 2020 highs represent a similar price peak level (near $32), and the current upside price trend has stalled near $27.50, which is a very strong resistance level.

XLF Monthly Double Top Warns Of Strong Resistance Near $32

This Monthly XLF chart below shows over 12 years of historical price data to allow our readers to understand the current market volatility and the current Double Top formation near $32.  We’ve also added some trend lines to help you understand the current price channel (CYAN) and the expanding wedge formation (YELLOW) that has setup recently.  The historical price channel (CYAN) shows the XLF is trading near the middle of this channel.  The expanding wedge setup shows a moderately deep downside price capacity if the financial sector falls into a new bearish price trend.

Overall, there are two levels that have the focus of my research team – the $27.40 & $25.05 levels (the horizontal MAGENTA lines).  We believe these historical support/resistance continue to play very important roles as price attempts to rally above the $27.40 level right now. If it fails to establish a bullish rally above this level, then the $25.05 level becomes an immediate support level for XLF.  Below $25.05, the $21 is the next real support level for XLF before even deeper support is sought out.

XLF Weekly Upside GAP Shows The Markets Want To Rally

The Weekly XLF chart below highlights the Island Peak in price recently and the huge GAP in price.  We believe the $27.40 (the upper MAGENTA line) level must continue to hold as support for this continued upside price trend to rally back above $30.  This Island Peak and the Double Top pattern on the Monthly XLF chart suggests the financial sector has already reached a peak price level.  As such, price would have to rally above $32 to prompt a new bullish price trend above the Double Top price levels.

Be sure to sign up for our free market trend analysis and signals now so you don’t miss our next special report!

The US Stock markets continue to stay fairly strong recently with the news of the COVID-19 vaccines and future expectations that the US may soon start to resume more normal activities.  We believe the Financial sector may continue to rally higher, but we are still cautious of the current Island Peak setup and the warning from the Double Top pattern on the Monthly chart.  We may see some time of a Christmas rally into early 2021, then experience a completely different market cycle depending on the new President and policies.

The financial sector is uniquely exposed to consumer, retail, commercial, and global credit/debt issues.  We believe the financial sector is a moderately solid “bell-weather” for traders to help gauge future expectations and opportunities.  Currently, the XLF is showing fairly strong potential for upward trending, but big risks are present because of the Island Peak and the huge price gap.

As we move into the 2020 holidays, pay attention to how the markets react to the continued recovery efforts and global banking/policy issues.  The Financial Sector could become a very profitable sector for skilled technical traders. We can help you find and identify great trading opportunities so visit TheTechnicalTraders.com to learn about my exciting ”Best Asset Now” strategy and indicators. Sign up now for my daily pre-market video reports that walk you through the charts of all the major asset classes every morning.

Chris Vermeulen
Chief Market Strategist
www.TheTechnicalTraders.com

NOTICE AND DISCLAIMER: Our free research does not constitute a trade recommendation or solicitation for readers to take any action regarding this research.  We are not registered financial advisors and provide our research for educational and informational purposes only. Read our FULL DISCLAIMER here.

 

Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often?

When one of these groups acts, “the odds become high for a change of trend”

By Elliott Wave International

It’s useful to know who is doing what in particular financial markets.

You’ll find out why as we proceed, however, let’s first start off with some basic background information.

The Commodity Futures Trading Commission follows the activity of three different groups of participants in the commodity markets: small traders, large traders and commercials.

A classic Elliott Wave Theorist, a monthly publication which provides analysis of financial markets and social trends, provides insight as to why only one of these groups is usually right at key turns:

Small traders are typically on the wrong side of the market at the turns. You might think that large traders, because they have a lot more money, are right a lot, but they are likewise usually wrong at the turns. The commercials are the only participants in commodity markets who generally buy low and sell high. … Commercials are in the business of manufacturing, not speculating, so they think economically rather than financially. They do not perceive commodities as investment items, so they’re not participating in the herd.

Large speculators (or traders) are comprised mainly of hedge fund managers. Let’s focus on this group, along with the commercials, as we review the commodities market.

Here’s a chart and commentary from the November Elliott Wave Financial Forecast, a monthly publication which focuses on major U.S. financial markets:

The top graph on the chart shows the weekly CRB index from March 2011 to the present. The middle graph shows Large Speculators’ combined net-long position in 17 active commodities as a percentage of total open interest. The bottom graph shows the same for Commercials. Large Specs are trend-followers who usually increase their net-long positions as prices rise, and vice versa. When their size becomes extreme relative to historic norms … the odds become high for a change of trend. The Commercials usually take the other side of the Large Spec trade. … Large Specs are currently net long 25.46% of open interest, their largest position on record.

This information about the actions of major participants in the commodities market is valuable, yet — an investor needs to know more — namely, the Elliott wave count of the CRB index.

Here are some insights into the Elliott wave method of analyzing financial markets from the book, Elliott Wave Principle: Key to Market Behavior, by Frost & Prechter:

Without Elliott, there appear to be an infinite number of possibilities for market action. What the Wave Principle provides is a means of first limiting the possibilities and then ordering the relative probabilities of possible future market paths. Elliott’s highly specific rules reduce the number of valid alternatives to a minimum. Among those, the best interpretation, sometimes called the “preferred count,” is the one that satisfies the largest number of guidelines. Other interpretations are ordered accordingly. As a result, competent analysts applying the rules and guidelines of the Wave Principle objectively should usually agree on both the list of possibilities and the order of probabilities for various possible outcomes at any particular time. That order can usually be stated with certainty. Do not assume, however, that certainty about the order of probabilities is the same as certainty about one specific outcome. Under only the rarest of circumstances do you ever know exactly what the market is going to do. You must understand and accept that even an approach that can identify high odds for a fairly specific event must be wrong some of the time.

You can prepare yourself psychologically for such outcomes through the continual updating of the second best interpretation, sometimes called the “alternate count.” Because applying the Wave Principle is an exercise in probability, the ongoing maintenance of alternative wave counts is an essential part of using it correctly. In the event that the market violates the expected scenario, the alternate count puts the unexpected market action into perspective and immediately becomes your new preferred count. If you’re thrown by your horse, it’s useful to land right atop another.

If you would like to learn more about the Wave Principle, you can access the online version of the entire Wall Street classic for free.

Simply follow this link: Elliott Wave Principle: Key to Market Behavior — free access.

This article was syndicated by Elliott Wave International and was originally published under the headline Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often?. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

 

Thanksgiving Week: The Return of Retailers

By Han Tan, Market Analyst, ForexTime

With Black Friday just around the corner, the traditional start of the US holiday shopping season is about to kick off. Typically, Black Friday sales are accompanied by scenes of bargain-hunters camping outside popular retail outlets, braving the cold, only to bum-rush the store once it’s open. Sometimes, overly eager shoppers literally bust down doors and even get into fist fights over the best deals.

This year, things are set to be very different, due to the Covid-19 resurgence across America.

Instead of the usual frenzy at the physical stores, the stampede for bargains has been more apparent in the stock markets. Investors have made a beeline towards retail companies that had been beaten down by the pandemic, as they price in a return to in-person shopping, enabled by a Covid-19 vaccine.

Such hopes sent stocks in mall-based retailers surging on Monday:

  • Macy’s soared 15 percent (month-to-date gains: 67.63 percent). Macy’s last week reported a better-than-expected Q3 performance.

 

  • American Eagle Outfitters jumped 7.32 percent (month-to-date gains: 32.6 percent). The company is set to release its Q3 earnings after US markets close on Tuesday.

 

  • Gap advanced 6.93 percent (month-to-date gains: 33.98 percent). Gap is also set to unveil its quarterly results after US markets close on November 24th.

 

  • Urban Outfitters climbed 4.44 percent (month-to-date gains: 41.72 percent), before announcing after markets closed on Monday that its Q3 earnings-per-share exceeded estimates.

 

Overall, the S&P 1500 Apparel Retail Index has surged by nearly 86 percent since its March low, and is now a mere 2.14 percent away from its highest ever closing price, posted on February 20th this year. Still with the stocks of many of these so-called “nonessential retailers” now reaching overbought territory, perhaps a pullback can be expected in the near-term.

This wave of optimism has been fanned by a report from the National Retail Federation, which expects US holiday sales to post a 3.6 to 5.2 percent growth compared to 2019’s US$729.1 billion that was spent during the year-end shopping season. The industry’s leading trade group expects a “strong finish” to what has been a tumultuous 2020, given that Americans who were not able to spend on other items such as vacations and in-person entertainment (sporting events, movies, etc.) will instead pour between US$755.3 billion to US$766.7 billion into their year-end shopping spree. Such an outlook augurs well for the overall US retail sales figure, which could only muster a mere 0.3 percent growth in October compared to the month prior.

However, execution risks remain. It remains to be seen how well these retailers can handle the incoming swarm of orders, be it for curbside pickup or direct shipping. Amazon has already braced itself by hiring over 25,000 more workers for its warehouses this year, while adding an extra 100,000 seasonal workers to handle the expected tsunami of online orders.

And the expected rebound in footfall isn’t assured. The pandemic may have left longer-lasting scars, potentially enforcing a lasting shift in shopping habits. Consumers may feel a lot more reluctant to return to in-person shopping and may have grown accustomed to buying items online. And with a spate of job losses in the US economy, with weekly jobless claims still over three times more than pre-pandemic levels while the unemployment rate remains close to seven percent, American consumers’ purchasing power may need more time to recover.

Still, a fresh round of US fiscal stimulus by the incoming Biden administration could help dampen some of these downside risks on US retail activity. Otherwise, once the year-end shopping bonanza fades away, these retailers might have been to brave a long, cold winter before they can welcome warm bodies back into their stores once more, to justify the eye-popping gains in their shares of late.

 

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Margin: How Stock Market Investors Are “Reaching for the Stars”

“This is the highest ratio in the 20-year history of the data.”

By Elliott Wave International

– One of the historic ways that stock market investors exhibit conviction about the direction of prices is to use leverage or participate in the market with borrowed money. Yet another way of putting it is to “trade on margin.”

Going all the way back to 1929, that was the downfall of many who viewed the market as a quick way to get rich.

Here’s an Oct. 29, 1929 Boston Daily Globe headline:

Margin Account Dumping Brings Stock Crash …

Yet, you can find examples in more recent history too

Here’s a chart and commentary from the June 2007 Elliott Wave Financial Forecast, a monthly publication which offers analysis of major U.S financial markets:

Another area where investors are expressing a wild-eyed optimism rivaling that of 2000 is in their use of leverage. The chart shows that April brought another surge in the use of NYSE margin (shown as a percentage of market capitalization). A similar push accompanied the S&P 500’s big top in 2000. The six-month rate of change at the bottom of the chart depicts a rare 4% surge in the use of margin.

As you probably know, the stock market hit a top four months later.

This brings us to what’s going on in the latter weeks of 2020. The November Elliott Wave Financial Forecast shows a chart titled “Reaching for the Stars with Borrowed Money” and says:

In recent weeks, some investors have upped the ante by jumping in further with borrowed money. On October 14, the Rydex Total leveraged Bull/Bear Ratio hit 36, which means Rydex mutual fund investors had 36 times as much money invested in leveraged bullish funds vs. leveraged bearish funds. This is the highest ratio in the 20-year history of the data. …

The extreme use of margin does not mean the market will top this week or next. Yet, history shows that it does serve as a reliable signal for what may be ahead.

It’s best to also look at the stock market’s Elliott wave pattern, which can provide an investor with a more precise assessment of a market turn juncture.

You see, the Wave Principle provides guidelines for forecasting.

As the book, Elliott Wave Principle: Key to Market Behavior, says:

Many of these guidelines are specific and can occasionally yield stunningly precise results. If indeed markets are patterned, and if those patterns have a recognizable geometry, then regardless of the variations allowed, certain price and time relationships are likely to recur. In fact, experience shows that they do.

Would you like to get more insights into the Elliott wave method for forecasting financial markets?

You can — and 100% free at that!

You can have the online version of the Wall Street classic book by Frost & Prechter on your computer screen in moments by following this link: Elliott Wave Principle: Key to Market Behavior — free access.

This article was syndicated by Elliott Wave International and was originally published under the headline Margin: How Stock Market Investors Are “Reaching for the Stars”. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Corcept Therapeutics Shares Rise 25% on Favorable U.S. Patent Office Ruling

Source: Streetwise Reports   11/19/2020

Shares of Corcept Therapeutics reached a new 52-week high after the firm reported that the U.S. Patent Trial and Appeals Board affirmed that all claims pertaining to its U.S. Patent No.10,195,214 are valid.

Commercial-stage pharmaceutical company Corcept Therapeutics Inc. (CORT:NASDAQ), which is focused on discovering and developing medicines that modulate the effects of the stress hormone cortisol to treat patients with severe metabolic, oncologic and psychiatric disorders, announced today that “the Patent Trial and Appeal Board (PTAB) of the U.S. Patent and Trademark Office has issued a decision upholding the validity of all claims of U.S. Patent No. 10,195,214, ‘Concomitant Administration of Glucocorticoid Receptor Modulators and CYP3A Inhibitors’ (the ‘214 patent’).” The firm noted that the ‘214 patent will expire in the year 2037.

Corcept Therapeutics’ CEO Joseph K. Belanoff, M.D., commented on the ruling, “We are gratified by the PTAB’s decision…The ‘214 patent is directed to an important medical discovery – that, with dose-adjustment as set forth in its FDA-approved label, Korlym® can be safely co-administered with medications known as strong CYP3A inhibitors, including commonly-prescribed antiviral, antibiotic, antifungal and antidepressant medications. Patients with Cushing’s syndrome often experience significant co-morbidities. We are glad that our research has increased the array of medications available to the physicians who treat them.”

The company indicated that excessive activity of the hormone cortisol is a primary cause of hypercortisolism, which is frequently referred to as Cushing’s syndrome. The firm advised that “endogenous Cushing’s syndrome (CS) is an orphan disease that most often affects adults aged 20-50.” Corcept Therapeutics noted that there are approximately 20,000 patients in the U.S. who have CS. The company explained that though CS symptoms vary, “most patients experience one or more of the following physical manifestations: high blood sugar, diabetes, high blood pressure, upper-body obesity, rounded face, increased fat around the neck, thinning arms and legs, severe fatigue and weak muscles.” Psychological symptoms also present often as well including increases in anxiety, cognitive disturbances, depression and irritability. The firm noted that “hypercortisolism can affect every organ system in the body and can be lethal if not treated effectively.”

Corcept Therapeutics is based in Menlo Park, Calif., and is a commercial-stage company engaged in the discovery and development of drugs that modulate the effects of the hormone cortisol. The firm stated that “Korlym® was the first drug approved by the U.S. Food and Drug Administration for patients with Cushing’s syndrome.” The company reported that “it has discovered a large portfolio of proprietary compounds that selectively modulate the effects of cortisol and that it owns extensive U.S. and foreign intellectual property covering the composition of its selective cortisol modulators and the use of cortisol modulators to treat a variety of serious disorders.”

Corcept Therapeutics began the day with a market capitalization of around $2.2 billion with approximately 116.2 million shares outstanding and a short interest of about 15.1%. CORT shares opened 20% higher today at $22.45 (+$3.79, +20.319%) over yesterday’s $18.66 closing price and reached a new 52-week high price this morning of $23.55. The stock has traded today between $21.37 and $23.55 per share and is currently trading at $23.40 (+$4.74, +25.40%).

 

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 decision to publish an article until three business days after the publication of the 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.

Precision BioSciences & Eli Lilly Partner to Develop In Vivo Therapies for Genetic Disorders

Source: Streetwise Reports   11/20/2020

Precision BioSciences shares traded 13% higher after the company reported it is partnering with Eli Lilly & Co. to develop in vivo therapies for genetic disorders with an initial focus on Duchenne’s muscular dystrophy and two other undisclosed gene targets.

Genome editing technology company Precision BioSciences Inc. (DTIL:NASDAQ) and pharmaceutical giant Eli Lilly and Co. (LLY:NYSE) today announced “a research collaboration and exclusive license agreement to utilize Precision’s proprietary ARCUS® genome editing platform for the research and development of potential in vivo therapies for genetic disorders, with an initial focus on Duchenne muscular dystrophy (DMD) and two other undisclosed gene targets.”

The firms noted that “genome editing technologies enable precise editing of the DNA of a living organism, opening up the possibility of correcting genetic problems at their source.” Precision BioSciences stated that “its proprietary ARCUS platform is derived from a natural genome-editing enzyme called I-CreI, a homing endonuclease that can be optimized to control for potency and specificity.”

The companies advised that under the agreement Eli Lilly will make a $35 million equity investment in Precision’s common stock and will pay Precision an upfront cash payment in the amount of $100 million. The firms noted that the agreement additionally provides Precision BioSciences with the opportunity to receive up to an additional $420 million if certain development and commercial milestones are met and from future product royalty payments.

The collaboration agreement stipulates that Precision will lead pre-clinical research and IND-enabling activities and Lilly will be in charge of clinical development activities and commercialization. Under the arrangement, Lilly has right to choose up to three additional gene targets.

Precision BioSciences’ Chief Scientific Officer and co-founder Derek Jantz commented, “We look forward to working with Lilly to leverage our deep understanding of in vivo gene editing and experience with ARCUS to develop new therapies, including a potentially transformative treatment for Duchenne muscular dystrophy…Collaborating with Lilly, a global healthcare leader with strong clinical and commercial experience in difficult-to-treat diseases, will help us accelerate our work aimed to solve genetic diseases with unique editing challenges.”

Ruth Gimeno, Ph.D., V.P. of Diabetes and Metabolic Research at Eli Lilly, remarked, “Gene-edited therapies are emerging as a promising approach to help patients afflicted with genetic conditions…We look forward to working closely with Precision’s scientific team and leveraging their platform to develop and deliver breakthrough medicines for untreated genetic disorders.”

Eli Lilly’s V.P of New Therapeutic Modalities Andrew Adams, Ph.D., added, “This collaboration with Precision BioSciences represents another milestone in the realization of our vision to create medicines with transformational potential, using new therapeutic modalities such as gene editing to tackle targets and indications which were previously undruggable.”

The firms stated that the transaction remains subject to ordinary closing conditions and regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act.

The company explained that the ARCUS proprietary genome editing technology that it created and developed in-house utilizes “sequence-specific DNA-cutting enzymes, or nucleases, that are designed to either insert (knock-in), remove (knock-out), or repair DNA of living cells and organisms.” The firm stated that it currently holds more than 65 patents that have been issued for its platform and products.

Eli Lilly is a global healthcare and pharmaceutical manufacturing company based in Indianapolis, Ind. The firm’s products include human pharmaceutical products and also animal pet and livestock feed and health products. Eli Lilly has a vast portfolio of medicines used in areas of cardiovascular, endocrinology, immunology, neuroscience and oncology. The company operates in the U.S. and 14 other countries and has a market cap of over $137 billion.

Precision BioSciences is a clinical stage biotechnology company headquartered in Durham, N.C. The firm uses its own proprietary ARCUS genome editing platform to develop “multiple “off-the-shelf” CAR T immunotherapy clinical candidates and several in vivo gene correction therapy candidates to cure genetic and infectious diseases where no adequate treatments exist.”

Precision BioSciences started the day with a market capitalization of around $508.0 million with approximately 52.48 million shares outstanding and a short interest of about 5.1%. DTIL shares opened 14% higher today at $11.05 (+$1.37, +14.15%) over yesterday’s $9.68 closing price. The stock has traded today between $10.24 and $11.45 per share and is currently trading at $10.95 (+$1.27, +13.12%).

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NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times

By TheTechnicalTraders

The NASDAQ E-Mini Futures (NQ) has rallied and stalled above 12,055, a 138.2% Fibonacci expansion of the December 2018 low range to the February 2019 (Pre-COVID-19) highs three times over the past 4 months.  We believe this resistance level, near 12,055, on the NQ is acting as a major price ceiling and may continue to prompt continued downside resistance as price attempts to break through this level.

NQ Fibonacci 1.382% Expansion May Turn Into A Major Top

The weekly NASDAQ E-Mini Futures chart, below, highlights the original price range and the current Fibonacci price expansion from the March 2020 COVID-19 lows.  We believe the sideways consolidation setting up on this NQ chart near the 1.382% Fibonacci expansion range suggests moderate price resistance exists near 12,055.  We also believe the three failed attempts to rally above this level represents a strong possibility of a major price peak setting up in the NQ unless recent high price levels are breached by a strong breakout/rally.

Whenever price failed to rally above resistance, as we are seeing on this chart, this support level becomes an even strong resistance level overall.  You will also likely notice the CYAN support channel near recent lows.  This level suggests a support channel is rising to create a FLAG formation – resulting in an APEX (breakout/breakdown) potential near the end of 2020.

My research team believes the end of year Christmas rally may be much weaker than expected after the big upside price rally post-COVID-19. We believe the uncertainty related to the political and global policies as well as the restrained consumer activity will likely prompt another round of broad market rotation and volatility over the next 4+ months. We believe trends will finally settle down near January/February 2021 – which will allow traders to really begin to take advantage of a broad market trend setting up.

This holiday season probably won’t be anything similar to the Christmas Rally modes we’ve seen in the recent past. We believe the resistance in the NQ near 12,055 will act as a price ceiling and prompt a downside price rotation with high volatility before the end of 2020.  This suggests traders should continue to prepare for big market rotations and higher volatility over the next 2 to 3+ months.

We can help you find and identify great trading opportunities so visit www.TheTechnicalTraders.com to learn about my exciting ”Best Asset Now” strategy and indicators. Sign up for my daily pre-market video reports that walk you through the charts of all the major asset classes every morning.

Have a great week!

Chris Vermeulen
Chief Market Strategist
www.TheTechnicalTraders.com

NOTICE AND DISCLAIMER: Our free research does not constitute a trade recommendation or solicitation for readers to take any action regarding this research.  We are not registered financial advisors and provide our research for educational and informational purposes only. Read our FULL DISCLAIMER here.