Good Thursday afternoon, folks, or good Friday morning (or maybe even Friday afternoon, for some of you). Whenever you get around to reading the newsletter, we hope things are going well for you. Anyway, we've got a handful of things to get through this afternoon, so let's not tarry.
First, back on June 2nd when we first introduced Moleculin Biotech (MBRX) to you, we promised we'd keep an eye out for any relevant news, and we'd also keep an eye out for any trading opportunities with the stock. We just ran across one we liked.
The nearby chart of MBRX speaks for itself. Like pretty much every other IPO out there, Moleculin Biotech shares had to get pushed around, and pay its dues. While it may not be done paying all of its dues yet, the first wave of hazing seems to have come to a close, setting up a rebound rally effort. The downtrend reversed course in a relatively decided fashion on Wednesday, and the bulls followed through on Thursday.
As we mentioned two weeks ago, there's no way of really knowing how things are going to pan out here. We do know that as time passes on and the story gets told, the stock becomes more of an investment and less of a speculation. We're still miles away from that time though. All the same, we have to like the near-term potential. That being said...
While our short-term goal is us to play the volatility as it's presenting itself, the reason we went to all the trouble to fully explain what Moleculin Biotech is -- and why you should care -- hasn't changed since the 2nd. This really is a potential game-changer for acute myeloid leukemia (or AML) patients.
I'll just refer you back to the online version of the June 2nd newsletter for the full scoop. But, I'll also whet your appetite by serving up this bottom-line snippet from that day's edition:
"As for the ultimate results in plain English, out of 100 AML patients, only the average 20 or so of them will have normally qualified for a bone marrow transplant, while the other 80 will have died - on average - in 6 months once the standard-of-care two-drug induction therapy has been stopped. Celator has extended that survival timeframe to 9.5 months later, with VYXEOS. Based on results from its last two clinical trials, however, if Moleculin Biotech had taken those other 80 patients and achieved its typical 30% success rate by clearing 95% of their leukemic cells, that means 24 of those 80 patients with a grim prognosis would now qualify for a bone marrow transplant that they didn't qualify for before... giving them huge hope for long-term remission when they otherwise had little. That's a massive improvement in the disease's survival odds. In a bigger sense, Moleculin changes the whole paradigm by letting patients and doctors play offense rather than defense."
We're looking forward to seeing the story continue to unfold.
Anyway, as today's subject line made clear the market may have been up today, but the "up" wasn't nearly as healthy as you might think.
The chart you're about to see is one you've seen before, though it's been a while. It's a look at the S&P 500, along with (from top to bottom) the NYSE's advancers, decliners, up volume, and down volume. What's interesting -- and not in a good way -- as that decliners were greater than advancers today, and the down volume was greater than the up volume. The market may have made a gain, but it was just a select few stocks carrying the weight. More stocks need to participate in these rallies if they're to last.
If you find that frustrating, you're not alone. As James Brumley said today in The Future Investor, he'd like for stocks to move higher, though he can deal with it if they'd move lower. The one thing that's amazingly annoying, however, is the market's overall stagnation. Yet, with yet-another unhealthy "up" day, we have no reason to think the market's geared up for any major moves higher.
On that note, it wasn't Brumley who made it clear he has a bead on what's really going on with stocks right now, and what you should do about it. It was the Elite Opportunity Pro's John Monroe. Check it out:
"At this point, I still believe the best tradable opportunities are going to surface at extreme pivot points. Meaning, it's probably not a good idea to get too overly active with respect to bullish ideas right now, unless of course they're major contrarian type plays. However, should today's low be blown right through to the downside, it will likely become an opportunity to eye any potential bearish trades until a point in time [removed by editor] is achieved on the NASDAQ.
When and where we suggest an entry will be key, however. You know we're not fans of chasing anything in one direction or the other, but rather prefer to fade against the idea in question on temporary reversals.
So what's the big takeaway here today? There's nothing wrong with taking profits early and often these days. Some fund and money managers are ecstatic with a five to ten percent return per year. You can make that and so much more with just a handful of trades in any given year, so let's keep the reality of the markets in perspective."
Brilliant. He's exactly right too. As much as we'd all like to keep pretending it's the go-go-go market of 2009 or 2013, it isn't. We have to make the adjustment to what the market is giving us rather than keep hoping the environment changes.
It's not easy to do. In fact, for many investors it's a completely new approach. It has to be done though, if you want to have any shot at making some real money in this market.
If this reality hits a little close to home for you, that's a sign that you need the Elite Opportunity Pro, which serves up these kinds of market-based swing trading ideas on a regular basis. And it's not just the stock market John trades. Oil, gold, bonds, and more are all part of his repertoire. In fact, he dished out a new oil trade just yesterday.
I'm telling you.... the Elite Opportunity Pro may be for professionals, but it's priced affordably for individuals like yourselves, and the individual traders using the service love it. I think you will too.