Amazon Enters Friend Zone; Crispr Dives On FDA Hold

Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. Gene-editing specialist Crispr Therapeutics (CRSP) crashed after the FDA put a hold on its sickle cell disease treatment with Vertex Pharmaceuticals (VRTX). Meanwhile, (AMZN) entered buy range, but the trading action suggests investors may want to keep this FANG stock in the “friend zone” for now. Amazon’s passionless move comes as (CRM) had its own flawed push past a buy point, while Micron Technology (MU) failed to close above its entry for a second straight session.


Dow Jones Leads Stock Market Rally

The Dow Jones industrial average rose 1.3% in Wednesday’s stock market trading, rebounding from Tuesday’s sell-off that ended with the blue-chip index just below its 50-day line. The S&P 500 advanced 1.3% as well. The Nasdaq composite rallied 0.9% to its best level in more than two months.

Dow Jones Futures Today

Dow Jones futures and S&P 500 futures were essentially flat vs. fair value. Nasdaq 100 futures edged up 0.15%. President Trump reportedly will implement steel tariffs vs. the European Union on Thursday. Such a move could pressure stock markets, though U.S. Steel (X) and other domestic steelmakers rallied overnight.

Crispr Therapeutics, Vertex Pharmaceuticals Fall

The two biotechs announced late Wednesday that the FDA has put a “clinical hold on the Investigational New Drug Application (IND) for CTX001 for the treatment of sickle cell disease pending the resolution of certain questions that will be provided by the FDA as part of its review of the IND.”

Crispr Therapeutics stock fell 14.4% to 63 in late trade, though off after-hours lows. Shares had closed up 6.8% to 73.59, a new closing high. Crispr is in danger of round-tripping a breakout from a 58.96 buy point out of a cup-with-handle base.

Vertex Pharmaceuticals, best known for its cystic fibrosis treatments, dipped 0.4%. Vertex stock rose 0.9% to 156.64 in Wednesday’s regular session, closing just below its 50-day line and above its 200-day average.

Amazon Stock In Buy Zone Or ‘Friend Zone’?

Amazon stock rose 0.7% to 1,624.89 on Wednesday, closing above a 1,617.64 cup-base buy point for the first time. But there was no passion in the move, a relatively small percentage gain in very light volume. You want to see a stock power into a buy zone with a strong price gain and volume that’s at least 40% to 50% above normal.

Investors also may want to wait for Amazon to clear its April 27 record high of 1638.10, when the online sales giant spiked following its first-quarter earnings report. Actually, Amazon is well on its way to forming a short flat base, though it still needs a few more days to carve out that pattern.

Salesforce stock rose 1.9% to 129.30 on Wednesday, moving back above a 128.97 flat-base buy point in robust volume following strong earnings late Tuesday. But a closer look raises some concerns. Salesforce stock closed in the lower half of its daily range after hitting 132.55 intraday. That also left Salesforce closing below the top of a brief consolidation over the past three weeks.

Micron Technology

Micron stock not only failed to close in buy range Wednesday, it failed to close higher. Micron cleared a 63.52 cup-base buy point for a second straight session, rising to 64.66 intraday. But the stock reversed lower to end down 0.1% at 62.57.

Micron has run up 36% so far in May. That’s powerful action, especially as the major averages move sideways. But that also didn’t give a chance for weak holders to exit. That could be what some investors are doing now.


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Originally posted 2019-09-19 23:15:17.


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