Friday Stock Market Week in Review + Prostate Ultrasound Device Sends Maker Up 75%
Markets are trading near neutral today, with most major indexes in mildly negative territory, as investors look to tie a bow on an overall outstanding week for equity markets. Among other headline-movers today, Apple (NASDAQ:APPL) is falling after suppliers made note of sharply falling component orders. Elsewhere, Tesla (NASDAQ:TSLA) has jumped over 10% in the past several days. Highly publicized production issues have haunted the company’s stock in recent months. Analysts are attributing this week’s surge to a “short squeeze,” with Tesla not falling as far as some skeptics bet. A short-squeeze happens when investors in a short position are forced to buy stocks to exit the bet, creating a surge in buying volume and price.
It has been another profitable week for News Quantified users: news-based trading has continued to thrive in the volatile trading of recent months. We review a few of our top trades from the week below. But if you’d really like to learn about how a news-based trading system can consistently find market-beating profits, we recommend one of our totally free virtual training sessions. There’s still some space left in our next session; sign up using the button below.
Tuesday, we examined some basic principles for finding profits during “extended hours trading:” a key hunting ground for News Quantified users.
Thursday, we went over the basic of reading 10-Q press releases: an essential piece of information for news-based traders. While detailed earning reports can be more helpful to value a company over the long haul, press releases go a long way in determining the market’s immediate reaction to any given news event.
Today’s Top Performer: EDAP TMS (NASDAQ:EDAP)
EDAP TMS SA bills itself as “the global leader in therapeutic ultrasound.” Their stock is leading the pack today after announcing FDA approval for the firm’s Focal One Device, used in the ablation (the destruction of parthenogenic tissue) of prostate tissue. EDAP’s novel approach uses real-time ultrasound scanning combined with 3D biopsy data to enable unprecedentedly precise ablation procedures.
Investors have been buying up EDAP since the news broke, driving it up 76% to $3.90 at the time of this writing. Today’s gains mark a welcome recovery for EDAP, which has fallen steeply since reaching highs over $5.75 near the end of 2015. The stock’s current price point would represent its best close since April 2016.
Pharmaceutical stocks continue to feature prominently among our most profitable news alerts. The development side of pharmaceuticals is simply a highly volatile industry: a single announcement can change the fair value of a company by orders of magnitude overnight. These announcements are almost always issued outside of trading hours, making this sector (like many others) another to consider trading during the extended session for maximized profits. Even the most sophisticated hedge funds in the world can’t know ahead of time (without insider trading) which drugs will work in trials, which devices will be approved by regulators, or which firms will announce market-shaking breakthroughs. That leaves profits on the table for even the smallest investors equipped with a real-time news analytics system.