NTLA breakout?
Updated
I keep an eye on these 3 "CRISPR" stocks:
EDIT
CRSP
NTLA
Now all 3 of these have sold off from highs last summer, to 52-week lows in December. The concern is the amount of debt, and no real revenue for the foreseeable future. Another concern probably has to do with that Chinese scientist who CRISPR'd a human baby. That's concerning to say the least... due to it being unethical. Regardless, the technology is very compelling in the biotech world. And this is in the news a lot.
However, the volatility in these stocks are rather high, which makes it great to trade if the conditions are correct.
I missed publishing a trade on CRSP.... recently bought around $30 and sold around $36 for a cute 20% gain in about a week. That was my first trade in quite a long time. I had some personal things going on which distracted me from the markets, which is why I haven't posted lately. I guess the timing of things were good, because I managed to sidestep a big DOWNTURN in the markets (see Dec 2018). A thing of note... keep an eye on high-yeld debt (junk bonds - JNK, HYG) and SRLN (Leveraged loan ETF) to have a sense on risk on/risk off. Don't forget, we are in a interest rate INCREASING environment. It takes about 12-18 months for interest rate hikes to take effect and those hikes really started about 18 months ago (went from 1.25% June 15, 2017 to 2.50% today)... a doubling of rates which isn't insignificant. If you have gains, take them as I don't believe this is a simple v-shaped recovery.
As for NTLA, opening a SMALL position here, hoping for a breakout above recent highs. Let's say from approx $15 to $16.50 which would be a 10% gain. A 20% gain would be $18, but that's a stretch. Stop set at 10% ($13.50).
Stay safe out there and book gains.
EDIT
CRSP
NTLA
Now all 3 of these have sold off from highs last summer, to 52-week lows in December. The concern is the amount of debt, and no real revenue for the foreseeable future. Another concern probably has to do with that Chinese scientist who CRISPR'd a human baby. That's concerning to say the least... due to it being unethical. Regardless, the technology is very compelling in the biotech world. And this is in the news a lot.
However, the volatility in these stocks are rather high, which makes it great to trade if the conditions are correct.
I missed publishing a trade on CRSP.... recently bought around $30 and sold around $36 for a cute 20% gain in about a week. That was my first trade in quite a long time. I had some personal things going on which distracted me from the markets, which is why I haven't posted lately. I guess the timing of things were good, because I managed to sidestep a big DOWNTURN in the markets (see Dec 2018). A thing of note... keep an eye on high-yeld debt (junk bonds - JNK, HYG) and SRLN (Leveraged loan ETF) to have a sense on risk on/risk off. Don't forget, we are in a interest rate INCREASING environment. It takes about 12-18 months for interest rate hikes to take effect and those hikes really started about 18 months ago (went from 1.25% June 15, 2017 to 2.50% today)... a doubling of rates which isn't insignificant. If you have gains, take them as I don't believe this is a simple v-shaped recovery.
As for NTLA, opening a SMALL position here, hoping for a breakout above recent highs. Let's say from approx $15 to $16.50 which would be a 10% gain. A 20% gain would be $18, but that's a stretch. Stop set at 10% ($13.50).
Stay safe out there and book gains.
Trade closed: stop reached
Well I got stopped out at $13.50 today. This was a 5% position so loss of 0.5% overall. My timing was pretty bad I'll admit.Looking back at the chart, that line I drew at $15 was resistance, and I should have waited until break higher than $15. Live and learn.
Reason for sell-off is that the CEO of EDIT has resigned, sending CRSP, EDIT, and NTLA down today. Baby is being thrown out with the bathwater.
I suspect these 3 stocks are now "dead money" for the time being. I'll wait for an ideal set up before venturing back into these 3 again.
Note
Check out the news from SGMO today. Not good for CRISPR stocks! Basically the news said there's no additional benefits to using CRISPR technology according to their study results. Yikes.All CRISPR stocks (NTLA, EDIT, CRSP, and SGMO), avoid for the time being. Dead money for now. Maybe you can get a quick swing trade at some point, but the trend is down now.
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