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January 17, 2025

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The Financial Sector’s Bullish Comeback: Is It Time to Start Looking at Bank Stocks?

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One effective way to spot potential market opportunities on a sector level is to regularly monitor  Bullish Percent Index (BPI) readings for each sector. Sector-focused BPIs tell you the percentage of stocks generating Point & Figure Buy Signals. From that point on, you can drill down to specific industries to find ETFs or stocks presenting tradable opportunities.

On Wednesday morning, following an encouraging CPI report and a strong kick-off to quarterly bank earnings, the BPI for the financial sector ($BPFINA) dramatically rose.

FIGURE 1. BPI FOR FINANCIAL SECTOR ($BPFINA). After a selloff, 56% of stocks in the financial sector triggered P&F buy signals.Chart source: StockCharts.com. For educational purposes.

After hovering above the 70% line for months, a threshold that signals potential overbought conditions, $BPFINA declined in December, falling short of touching the “oversold” threshold of 30%. On Wednesday, it jumped above 50%, a line that favors the bulls as it indicates that over 50% of stocks within the sector are generating P&F buy signals.

In addition to a tempered CPI report, one which followed a similar PPI reading from the previous day, strong bank earnings were a key driver behind Wednesday’s dramatic market rally, particularly the big players: JPMorgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC), and Citigroup (C).

Let’s use PerfCharts to compare the SPDR S&P Bank ETF (KBE), our bank industry proxy, to these four names. KBE provides an equal-weighted representation of small-, mid-, and large-cap bank stocks, giving a wider context to view relative performance.

FIGURE 2. PERFCHARTS OF KBE, JPM, GS, WFC, AND C. Note that all four banks are outperforming KBE.Chart source: StockCharts.com. For educational purposes.

This quick view tells you that in the last year, the “big four” have been outperforming the broader banking industry. Wells Fargo and Goldman Sachs are leading the pack, followed by JPMorgan Chase and Citigroup.

Suppose, however, you wanted to take a diversified position by going long KBE, anticipating the possibility that the banking industry might see a favorable year, especially under the new White House administration. Take a look at a daily chart of KBE.

FIGURE 3. DAILY CHART OF KBE. After losing bullish momentum, KBE is at a juncture that is neither definitively bullish nor bearish. Chart source: StockCharts.com. For educational purposes.

Here are a few key observations about the chart:

  • The ZigZag line clearly shows the swing points identifying when the uptrend and near-term downtrend were broken (remember, uptrend = HH and HL, and the opposite is true of a downtrend).
  • The orange circles highlight the nearest swing low and high points, both of which were breached, making the near-term uptrend or downtrend uncertain at this time.
  • For the downtrend to resume, KBE would have to fall below $53, the November low (see blue dotted line) that served as support.
  • For a new uptrend to take place, KBE must stay above $53 and eventually break above potential resistance at $58 (see red dotted line) before challenging the two November highs.

In short, it’s a wait-and-see moment. If you entered early, a stop-loss below $53 or any of the consecutive swing low points (see ZigZag) can be helpful.

If you’re considering investing in individual banking stocks, among the four big banks reporting outstanding earnings results, Citigroup made a new 52-week high. I identified this using the StockCharts New Highs Dashboard panel.

FIGURE 4. NEW HIGHS TOOL. Citigroup made a new 52-week high on Wednesday morning and is worth a closer look.

Let’s take a closer look. Below is a daily chart of Citigroup.

FIGURE 5. DAILY CHART OF CITIGROUP.  A steady uptrend culminating in a bullish yet parabolic jump.Chart source: StockCharts.com. For educational purposes.

A couple of main points:

  • Citigroup saw a tremendous jump Wednesday as its Q4 earnings beat Wall Street’s expectations; analysts’ fundamental targets have been revised to as high as $102, with $80 as the median price target.
  • The Relative Strength Index (RSI) barely entered overbought territory (see orange circle), indicating strong momentum.
  • The Accumulation/Distribution Line (ADL) is recovering after a prolonged drop in money flows.
  • The On Balance Volume (OBV) shows significant buying pressure.

As Citigroup makes new highs, its parabolic move may be countered by a slight pullback. If so, the scenario is straightforward. If you look at the ZigZag lines and the support levels of the two most recent swing lows (see dotted blue lines), you can identify the prices that, if broken, could call the stock’s uptrend into question.

These levels, both of which should serve as support, are especially critical for any trader who has opened a long position. Also, monitor the $74 range that coincides with the last two consecutive swing high points. While these highs are near the current price, they could still act as a support level if the stock pulls back.

If you’re looking to enter a position, it may be wise to wait and observe how the price reacts to any of the support levels before deciding to go long. If the price falls below these levels, additional support could emerge at subsequent swing lows. However, in the case of a significant reversal, you would need to reassess the trend to determine whether support levels represent buying opportunities or merely temporary rally points in a bearish trend.

At the Close

Financials are showing signs of recovery and renewed momentum, with $BPFINA crossing a key bullish threshold. Strong bank earnings are driving market sentiment, with  Citigroup making a new 52-week high.

What to do: Add Citigroup to your ChartLists. Use a basic support and resistance perspective to guide your decisions and watch the swing points to determine the status of the trend.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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What Would It Take For Small Caps to Lead?

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There have been rumblings of “the return of small caps” for many moons, but small-cap leadership has still not materialized as we kick off the new year. Today we’ll share three charts to watch, besides the obviously important chart of the Russell 2000 ETF (IWM), to determine when a new leadership phase for small caps is imminent.

The chart of IWM itself appears to be in a neutral state, similar to what we’re observing in the other major equity indexes. A long-term trendline using the October 2023 and August 2024 lows has been violated, but this week we saw a bounce right back above this level. IWM has bounced off the 200-day moving average, as well as the 38.2% retracement of the 2024 bull market, but it still remains below its 50-day moving average.

Financials are One of the Top Sectors in Small Caps

While the S&P 500 is dominated by the technology sector, currently comprising about 32% of the index based on market capitalization, small cap indexes tend to have a more value-tilted sector profile. Financials are the second-largest sector weight after industrials, and a boost this week from earnings wins indicates perhaps a new leadership role for this value-oriented sector.

We can see that a similar trendline for the Financial Select Sector SPDR Fund (XLF) was tested last week and held before this week’s bounce higher. We can also observe a bullish momentum divergence over the last two months, with lower lows in price matched with higher lows in the RSI. Finally, the daily PPO indicator recently generated a bullish crossover, indicating the trend has now reversed higher.

A Resurgence in Biotechs Could Boost the Small Cap Index

While financials have rotated higher this week, the iShares Nasdaq Biotechnology ETF (IBB) remains in a primary downtrend. However, with IBB bouncing off support around $131, this could be a setup for a bullish price rotation.

While IBB has been pounding out lower highs since last November, the price is no longer making lower lows. A bounce off this recent support level, followed by a successful breakout above moving average resistance, could definitely turn this chart from a chronic underperformer to a more compelling space. And since biotechs are one of the largest industry bets in the Russell 2000, renewed strength for IBB could most likely translate to upside movements for IWM.

In the End, It’s All About the US Dollar

While those previous two charts represent large weights in the Russell 2000, our final chart represents more of a macro tailwind for small caps. Mega cap multinational companies, such as the top weights in the S&P 500 and Nasdaq 100, generate a large percentage of their revenues outside the US. So when they go to exchange their non-US revenues back into US Dollars, the stronger $USD chart would mean those non-US revenues are much less valuable in dollar terms.

Small-cap companies tend to generate most of their revenues in the US.  Therefore, small cap stocks would not be faced with that currency headwind that could have dramatic effects on mega cap earnings in 2025.

We can see a fairly consistent primary uptrend in the US Dollar since a major low in September 2024. As long as this chart continues to make higher highs and higher lows, the stronger US Dollar could have more and more of a negative impact on the largest US companies. As small caps are fairly immune from this potential headwind, a continued uptrend in the US Dollar would suggest small caps could definitely outperform going forward.

At the end of the day, the chart of IWM will be the most important one to watch to gauge a potential leadership role for small caps. The most bullish signal we could observe would be a breakout for the small indexes! Hopefully, these three charts can be used in conjunction with a thorough technical evaluation of IWM to determine whether small caps can finally take on a leadership role in the equity space.

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

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Quantum Computing: Top Stocks You Should Watch Now!

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Jensen Huang may have burst the quantum computing bubble when he said it would take over 15 years for quantum computers to gain widespread use. And yet four quantum computing stocks made it to the top of the list in the StockCharts Technical Rank (SCTR) Report in the Top 10 Mid-Cap Category. You can thank Microsoft (MSFT) for this — the company is talking about becoming ‘quantum-ready’ this year.

A few weeks ago, we covered quantum computing stocks. At the time, the four stocks discussed in the article — Quantum Computing, Inc. (QUBT), Rigetti Computing, Inc. (RGTI), Quantum Corp. (QMCO), and D-Wave Quantum, Inc. (QBTS) — were in the small-cap category. In three weeks, three of these stocks crossed into the mid-cap category. The fourth stock that climbed up the ladder was IonQ, Inc. (IONQ). The four stocks that made it to the top on Thursday are displayed in the image below.

FIGURE 1. TOP 10 MID-CAP SCTR STOCKS. Quantum computing stocks clinch the top four spots.Image source: StockCharts.com. For educational purposes.

In the last article, QUBT, RGTI, and QBTS were trending higher and above their 21-day exponential moving average (EMA). Things have changed since then. IONQ also followed a similar pattern as the other three stocks (see chart layout below).

FIGURE 2. TOP FOUR QUANTUM COMPUTING STOCKS. QUBT, RGTI, IONQ, and QBTS were the top four stocks in the mid-cap SCTR category.Chart source: StockChartsACP. For educational purposes.

All four stocks gapped lower after Huang’s statement, reached a support level of a previous low, and bounced back. QUBT, RGTI, and QBTS are battling at or close to their 21-day EMA, whereas IONQ has broken above it.

Will these stocks gain enough momentum to re-establish their bullish trend? The moving average convergence/divergence (MACD) hasn’t given the signal yet. Once it does, and all four stocks break above their 21-day EMA and revisit their 52-week highs, they could continue their bullish trend.

Get Your Quantum Advantage

It’s worth creating a ChartList of quantum computing stocks even if you’re on the face. At a favorable price point, quantum computing stocks could be worthwhile investments. If you have the luxury of investing for several years, this could be a group of stocks that could add value to your portfolio. There’s also the Defiance Quantum ETF (QTUM) that will give you broad exposure to several quantum computing and other technology stocks. For more details on QTUM, check out this Symbol Summary page.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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What are Dividend Stocks?

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While many stocks may be a risky gamble, dividend stocks can offer less volatility, higher returns and stable passive income.

In this article

    What are dividend stocks?

    Dividend stocks reward their shareholders with regular payments out of company earnings. These payouts may come quarterly, semi-annually or annually. The board of directors is responsible for setting the company’s dividend policy and for determining the size of the dividend payout based on the firm’s long-term revenue outlook.

    The more shares an investor holds in a particular dividend stock, the higher the payment you receive will be. For example, if you own 100 shares of a stock paying an annual cash dividend of $3, you would receive $300 in annual dividends from that company. If that company paid a quarterly dividend, you would receive $75 in dividends every three months for a total of $300 over the course of the year.

    Cash dividend payments are typically sent to shareholders through the investor’s brokerage account. However, companies may also pay out dividends by issuing stock (referred to as a stock dividend), or by offering discounts on stock purchases through dividend reinvestment programs (DRIPs).

    Other dividend types include special dividends, which are one-time payments to holders of common stock that are paid out from a company’s accumulated profits; there are also preferred dividends, which are paid to holders of preferred stock on a quarterly basis at a fixed rate.

    When declaring a dividend, an ex-dividend date is set based on stock exchange rules. This date determines whether or not shareholders in the company are eligible for the dividend payout.

    Those shareholders that purchased stock before the ex-dividend date are entitled to the dividend. Conversely, if you purchased stock on or after the ex-dividend date, the seller will receive the payout and you will have to wait until the next declared dividend to reap the rewards of holding a dividend stock.

    To determine an ex-dividend date, check a company’s dividend announcement, where it should note that the dividend will be paid to stockholders of record up to a certain date.

    Pros and cons of investing in dividend stocks

    There are several advantages to dividend stocks, especially for those who prefer a long-term approach to investing, including acting as a source of income and providing stability.

    Companies that pay stock dividends and DRIPs offer investors the opportunity to grow their holdings. Cash dividend stocks, on the other hand, provide an additional source of income that can be used for things such as your mortgage, vacations, healthcare or a child’s university tuition.

    Another attractive feature of dividend stocks is the security they offer. Companies that are able to pay dividends are often well-managed firms with the ability to generate consistent revenues, even in the face of a volatile market.

    As for taxation on dividend stocks, for investors in the US and Canada, the tax rate on qualified or eligible dividends will typically be lower than other forms of investment income. The dividend tax rate will depend on many factors such as your income, where you live, where the company is based and what kind of account you hold the stock in.

    Both the US and Canada have lowered taxes for dividends on American and Canadian companies, respectively, compared to foreign companies. The amount of tax credit towards dividend income also vary depending on the state or province in which you live.

    In the US, you will be taxed less if your dividends are held in an IRA or a 401(k) plan, but if you receive your dividend payments through a brokerage account, that tax rate will be higher. In Canada, you will not need to pay taxes if your dividend shares are held in a TFSA, and you will only pay taxes on dividends in an RRSP when the funds are withdrawn from the account.

    There are downsides to dividend stocks as well. Firstly, when companies are doling out a portion of the profits to shareholders, less capital is being put back into growing the business. This means that dividend stocks have less potential to gain in value. For investors big on growth stocks, these might not be an ideal portfolio addition. There is also the risk that during a downturn in the markets, a company may be forced to pare down its dividend payments or suspend them entirely.

    There are a number of important metrics typically available through online financial and brokerage websites that investors can use to evaluate whether or not a particular dividend stock is right for their portfolio. The three most useful metrics are the debt-to-equity ratio, the dividend yield and the dividend payout ratio.

    What is debt-to-equity ratio?

    The debt-to-equity ratio calculates the amount of total debt (including financial liabilities) that a company holds compared to total shareholder equity. Basically, it’s a measure of the extent to which a company can cover its debt and is used to evaluate a company’s financial health.

    In the context of dividend stocks, a high debt-to-equity ratio can threaten a company’s ability to maintain its dividend. Avoiding companies with a debt-to-equity ratio higher than two is a good rule of thumb, and ratios below one are typically considered good.

    However, it is important to keep in mind that normal ranges for debt-to-equity ratios do depend on the sector. For example, according to January 2025 data from FullRatio, US companies in most of the mining and metals industries had some of the lowest average debt-to-equity ratios of all industries at around 0.2 or below. However, copper, uranium and oil and gas companies had higher debt-to-equity ratios, with averages falling in a range of 0.46 to 0.98 depending on the industry.

    What is dividend yield?

    While the debt-to-equity ratio can be used to evaluate any stock, the dividend yield is a metric specific to evaluating dividend stocks. The dividend yield is a ratio in percentage form that represents the income paid out to shareholders compared to a company’s share price. This ratio is calculated by dividing the annual dividend payment per share by the current share price, meaning it changes with share price fluctuations.

    Investors can use dividend yields to compare the investment value of a dividend stock with its peers in a given sector. “Dividend yield can help investors evaluate the potential profit for every dollar they invest, and judge the risks of investing in a particular company,” Business Insider states.

    For example, let’s say you are choosing between three dividend stocks in a sector with an average dividend yield of 5 percent. Company A pays an annual dividend of $3 per share and is currently trading at $50, meaning it has a dividend yield of 6 percent. Company B also pays an annual dividend of $3 per share, but its current share price is $100, which is a 3 percent dividend yield. Company C pays a dividend of $4 per share and is trading at $40, giving it a dividend yield of 10 percent.

    Taking into account the average dividend yield for the sector, Company A is the best choice of the three. While Company C has a much higher yield, it’s out of line with the sector average, which might be a signal that the company poses a greater investment risk.

    “While a high dividend yield may be appealing, it doesn’t necessarily mean a stock is a smart investment,” Investopedia states. “Overly high dividend yields may indicate that a company is struggling.”

    Conversely, a dividend yield of below 2 percent may be an indication that the company is more focused on growth and investing back into the business rather than sharing profits with stockholders.

    Most financial advisors say investors should look for companies with dividend yields of between 2 and 6 percent.

    Dividend yields move in the opposite direction of stock prices. In the example above, Company C was previously trading at $80 per share before a massive recall of its product was forecast to cost it millions of dollars in lost revenue, causing a massive selloff. Therefore, its ultra-high dividend yield is a negative signal to investors.

    The example of Company C is another reason why investors would be wise not to pick stocks based on one metric alone.

    What is dividend payout ratio?

    Let’s look at another important tool for evaluating dividend stocks: the dividend payout ratio. The dividend payout ratio helps investors measure the risk associated with a particular company’s dividend payment. The ratio is calculated by dividing total dividends by net income. It tells you how much of the company’s net income goes toward paying dividends.

    If a company’s dividend payout ratio shows it is using all of its income to pay dividends, then its dividend program is likely not sustainable. The closer the ratio is to 100 percent, the more likely a company’s dividend program will be cut once the market cycles into a downturn. Nerd Wallet advises investors to rule out companies with dividend payout ratios of 80 percent or above, while Investopedia reports that companies with dividend payout ratios of less than 50 percent are “considered stable” and have “the potential for sustainable long-term earnings growth.”

    What are dividend aristocrats?

    Investors looking for the most stable, reliable dividend stocks turn to dividend aristocrats, which are are S&P 500 (INDEXSP:.INX) companies known for consistently increasing their dividends for at least 25 years. Dividend aristocrats come out of a broad range of industries, such as energy, pharmaceuticals, consumer goods, technology, precious metals mining, financial services and automotive. Well-known companies that are dividend aristocrats include:

        Are dividend aristocrat stocks good investments?

        It should be noted that even dividend aristocrats are not entirely immune from the havoc a recession can wreak on a company’s financial health.

        “Of the 60 dividend aristocrats that existed in 2007, 16 of them cut or suspended their dividends during the financial crisis,” notes Simply Safe Dividends, which offers the Dividend Safety Score system alongside a suite of portfolio-tracking tools. “While bank stocks accounted for the majority of those cuts, it’s never easy to predict which sector will experience the next shock.”

        During the economic shock induced by the COVID-19 pandemic in 2020, 25 percent of the companies covered by Simply Safe Dividend’s Dividend Safety Score cut their dividends.

        Choosing to invest in a dividend stock generally comes down to your risk tolerance. The best way to mitigate your risk of losing money by investing in a dividend stock is to perform adequate due diligence.

        Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.

        This post appeared first on investingnews.com

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        Top 5 NASDAQ Genetics Stocks (Updated January 2025)

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        Discoveries made by companies in the genetics sector help support every other life science industry in a variety of ways.

        One of the genetic sector’s major contributions is the discovery of new genetic drivers of diseases. Genetic testing has grown substantially over the last few years thanks to advances in technology; growth has also been spurred by an increase in chronic diseases and the continuing development of test kits for therapeutic areas with unmet medical needs.

        Gene therapy is also a huge driver of growth in the overarching genetics market. It’s estimated that in 2024 this market was worth US$8.98 billion, and is expected to reach an impressive US$57.13 billion by 2034, growing at a compound annual growth rate of 18.52 percent over that time period.

        This important segment of the life science market is focused on how genes can help treat or prevent serious conditions in patients. This includes the potential for healthcare professionals to implement gene therapy at the cellular level instead of using medication or surgery, replacing “faulty” genes with new ones to potentially cure diseases.

        Pharma and biotech companies often dabble in genetics along with their core disciplines, meaning that some firms may also have operations in other areas. The top NASDAQ genetics stocks listed below have products related to gene therapy, genetic testing, genetically defined cancers and rare genetic diseases.

        Data for this list of genetics stocks on the NASDAQ was collected on January 15, 2024, using TradingView’s stock screener, and stocks with market caps above US$50 million were considered.

        1. Avidity Biosciences (NASDAQ:RNA)

        Year-over-year gain: 149.51 percent
        Market cap: US$3.33 billion
        Share price: US$27.87

        Avidity Biosciences is a biopharma firm developing a new form of RNA therapy called antibody oligonucleotide conjugates (AOC) that targeted the genes causing rare muscle diseases. Through its proprietary AOC platform, Avidity is conducting clinical development programs for three rare muscle diseases: AOC 1001 for myotonic dystrophy type 1, AOC 1044 for Duchenne muscular dystrophy and AOC 1020 for facioscapulohumeral muscular dystrophy. The company is also working to expand its pipeline into cardiology and immunology.

        Avidity announced on February 20, 2024, that the US Food and Drug Administration (FDA) granted rare pediatric disease designation to its investigational therapy AOC 1044 for the treatment of Duchenne muscular dystrophy in people with certain mutations. Shares in the company rose more than 43 percent following the news to US$20.11 by March 1.

        The FDA awarded breakthrough therapy designation to Avidity’s lead clinical development program, AOC 1001 for the treatment of myotonic dystrophy type 1, in early May.

        Avidity’s stock price jumped by nearly US$10 to US$38.36 per share on June 12, the day Avidity shared positive initial data from the Phase 1/2 trial of AOC 1020, which “demonstrat(ed) unprecedented and consistent reductions of greater than 50% in DUX4 regulated genes, trends of functional improvement, and favorable safety and tolerability in people living with facioscapulohumeral muscular dystrophy.”

        By August 9, shares in the company had risen by a further 22 percent to US$46.95 per share after it announced positive data from its Phase 1/2 trial for AOC 1044 in people living with Duchenne muscular dystrophy, including results showing a significant increase of 25 percent of normal in dystrophin production and a reduction of creatine kinase levels to near normal.

        Shares in Avidity reached a yearly peak of US$52.50 on November 13, a day after the company introduced its first two precision cardiology development candidates targeting the root cause of genetic diseases of the heart.

        2. Wave Life Sciences (NASDAQ:WVE)

        Company Profile

        Year-over-year gain: 134.08 percent
        Market cap: US$1.75 billion
        Share price: US$11.47

        Wave Life Sciences is another clinical-stage firm focused on unlocking insights from human genetics to deliver RNA-based medicines. The company’s PRISM platform is targeting both rare and prevalent disorders. Its pipeline includes clinical programs for Duchenne muscular dystrophy, alpha-1 antitrypsin deficiency and Huntington’s disease, as well as a preclinical program in obesity.

        Wave’s stock value made its biggest gains mostly in the fourth quarter of 2024. On September 24, Wave announced positive interim data from its ongoing Phase 2 FORWARD-53 study of WVE-N531 being investigated in boys with Duchenne muscular dystrophy. The news led shares in the company to grow in price by more than 68 percent to close at US$9.01 on September 25.

        Wave’s share price received its biggest boost on October 16, rising more than 70 percent to US$14.90, when the company shared positive proof-of-mechanism data demonstrating the “first-ever therapeutic RNA editing in humans” achieved in its RestorAATion-2 trial of WVE-006 in alpha-1 antitrypsin deficiency.

        Shares in Wave reached their highest yearly peak at US$16.44 on November 8.

        3. UniQure (NASDAQ:QURE)

        Year-over-year gain: 127.85 percent
        Market cap: US$747.59 million
        Share price: US$13.99

        UniQure is a gene therapy company focused on patients with severe medical needs. In November 2022, the FDA approved the company’s gene therapy Hemgenix (etranacogene dezaparvovec), which is the world’s first gene therapy for hemophilia B. Today, uniQure’s proprietary gene therapy pipeline includes treatments for patients with Huntington’s disease, refractory temporal lobe epilepsy, ALS and Fabry disease.

        UniQure had its first big leap in its share value after the company announced a positive interim data update showing slowing of disease progression in its Phase 1/2 trials of AMT-130 for Huntington’s disease on July 9, 2024. The stock shot up more than 167 percent to US$10.12 per share.

        Its next significant move to the upside came on December 10 when shares reached US$15.30 after uniQure notified shareholders it had reached an agreement with the FDA on an accelerated approval pathway for AMT-130.

        “This is an important milestone for the Huntington’s disease community as it puts us on the most rapid and efficient pathway to deliver a potentially life-changing therapy to people living with this devastating neurodegenerative disorder,’ said Walid Abi-Saab, chief medical officer of uniQure. “We have initiated BLA readiness activities and look forward to further engaging with the FDA in the first half of 2025 to discuss our statistical analysis plan and the technical CMC requirements.”

        Shares in uniQure hit a yearly high of US$18.05 on January 2, 2025.

        4. Sangamo Therapeutics (NASDAQ:SGMO)

        Year-over-year gain: 114.05 percent
        Market cap: US$229.51 million
        Share price: US$1.10

        Sangamo Therapeutics is a genomic medicine company developing multiple platforms for developing gene therapies, such as gene editing and cell therapy, to address the unmet needs of patients afflicted with serious neurological diseases.

        On July 24, 2024, the company reported on positive topline results from the Phase 3 AFFINE trial evaluating giroctocogene fitelparvovec, an investigational gene therapy for the treatment of adults with moderately severe to severe hemophilia A. The company was co-developing the therapy with and licensing it to Pfizer (NYSE:PFE). Sangamo’s share value more than doubled from July 23 to reach US$0.92 per share on July 29.

        On October 22, Sangamo announced that the FDA has given the company a clear regulatory pathway to accelerated approval for its wholly owned gene therapy product candidate isaralgagene civaparvovec (ST-920), for the treatment of Fabry disease. Sangamo said it expects a potential biologics license application submission in the second half of 2025. Shares in the genetic stock rose more than 69 percent in one day to US$1.54, and continued climbing over the following weeks to its highest yearly peak of US$2.87 on November 9.

        However, the company was hit by a surprise at the end of 2024, and announced on December 30 that Pfizer decided to terminate its global collaboration and license agreement with Sangamo for the hemophilia A treatment. The termination is effective April 21, 2025, at which time Pfizer will return full rights to the therapy to Sangamo.

        ‘We are committed to exploring the optimal path forward for this important treatment, including seeking the right partner with the focus and understanding of the genomic medicine commercial environment to bring this medicine to patients,’ Sangamo CEO Sandy Macrae stated in the release. The news gave the stock a more than 56 percent hair cut to US$1.01 per share.

        5. Stoke Therapeutics (NASDAQ:STOK)

        Year-over-year gain: 88.67 percent
        Market cap: US$502.66 million
        Share price: US$9.49

        Stoke Therapeutics is another biotech company with a focus on developing RNA medicine. With its proprietary research platform TANGO, which stands for targeted augmentation of nuclear gene output, the company is developing antisense oligonucleotides to selectively restore protein levels.

        Stoke’s first product candidate, zorevunersen (STK-001), is in clinical testing for the treatment of Dravet syndrome, a severe genetic epilepsy. The company is also developing STK-002 for the treatment of autosomal dominant optic atrophy, an inherited optic nerve disorder.

        On March 25, 2024, Stoke announced “landmark new data” supporting the potential for its STK-001 product candidate to become the first disease-modifying medicine for the treatment of patients with Dravet syndrome. A few days later, the company’s share price had risen by 118 percent to reach US$14.17 per share.

        Shares of Stoke Therapeutics hit a yearly peak of US$17.52 on June 13.

        Other good news coming out of Stoke during 2024 included new positive data out of its Phase 1/2a and open-label extension studies for STK-001 on September 10, as well as the FDA granting STK-001 breakthrough therapy designation on December 4 for the treatment of Dravet syndrome ‘with a confirmed mutation, not associated with gain-of-function, in the SCN1A gene.’

        Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

        This post appeared first on investingnews.com

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        Vanadium Market Forecast: Top Trends for Vanadium in 2025

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        The vanadium market is poised for shifts this year driven by a projected rise in demand from energy storage and steel sectors.

        Energy storage systems that utilize vanadium redox flow batteries (VRFBs) are gaining traction as renewable energy deployment accelerates, boosting demand for high-purity vanadium.

        However, global supply remains constrained due to limited mining projects and geopolitical uncertainties, particularly in China and Russia, key producers.

        Additionally, environmental regulations and advancements in recycling technology may influence supply dynamics. Market observers will also watch potential price volatility tied to steel demand, the largest consumer of vanadium globally.

        In September 2024 China introduced new standards for rebar which are anticipated to increase high quality vanadium demand in the segment.

        “Production of rebar with the new standards will increase per annum vanadium nitrogen consumption by roughly 15 percent,” A July Fastmarkets report noted. “That calculation is based on China’s 2023 rebar production volume.”

        “Vanadium demand in steel alloys will rise in 2025 due to change in Chinese rebar standards. However, expected demand rise in steel will not be as high as estimated from battery manufacturing in the medium term due to slow down in the Chinese construction industry,” said Piyush Goel, commodities consultant at CRU Group via email.

        He added: “Vanadium demand in batteries is estimated to rise rapidly, this rise in demand will primarily come from China due to targeted government policies due towards vanadium redox flow batteries (VRFBs).”

        China, which is the leading producer of vanadium, is also expected to drive global demand in the year ahead.

        “Rise in vanadium demand in the medium term (till 2029) is estimated to be heavily concentrated in China because we estimate VRFB demand to pick-up faster in China compared to other regions,” he said. “Similarly, Chinese rebar standards also changed – requiring higher vanadium intensity steel. Due to the rapid rise in domestic vanadium demand, China is likely to become a net importer of vanadium as the Chinese market goes into deficit from surplus.”

        Vanadium demand faces rebar challenges, with limited boost from batteries

        Even though Fastmarkets is calling for a 15 percent uptick in vanadium demand for rebar, this will only bring demand back up to previous levels.

        As Erik Sardain, principal analyst for Project Blue explained, China’s weak construction market has caused a 15 percent year-on-year decline in domestic rebar construction.

        Despite positivity in the VRFB space, Sardain doesn’t expect this to offset the lower rebar demand.

        The principal analyst went on to point out that quantifying the amount of vanadium used in batteries and energy storage is challenging to tally. He also questioned the forecasted demand trends from the battery segment.

        “I think the market got it wrong for one main reason, because the market is assuming that the vanadium redox battery for the storage system is going to be something worldwide,” he said. “And at Project Blue, we don’t think it’s going to be global. We think it’s going to be primarily China.”

        He attributes this to the types of installations that are being deployed utilizing VRFB energy storage systems, explaining that China is using it to power grids while other countries are using the technology for small scale applications.

        Taking a more optimistic and long-term view, CRU’s Goel sees more viability in the battery and energy storage segments.

        “VRFBs will have a considerable impact on the vanadium industry through the next two decades but will play a minor role in the energy storage space – accounting for only 3.5 percent of total battery energy storage installations by 2035,” said Goel.

        “Although VRFBs will make up a small portion of total energy storage, they are significant consumers of vanadium and will consume the majority of global vanadium in 2035, compared to ~6 percent in 2024,” he added.

        Supply picture blurred by geopolitics

        As the ongoing Ukraine war and tensions between the US and China and the US and its allies grows, many metals and minerals have faced volatility. These tensions have disrupted critical metals markets, spurring policymakers to fast-track new supply chains.

        China’s restrictions on gallium and germanium exports in August 2023 escalated to a complete ban on shipments to the US in December 2024, intensifying global supply concerns.

        Potential export caps, and tariffs threaten to disrupt already fragile supply chains, however Goel doesn’t foresee these issues impacting the vanadium market.

        “Similar trade restrictions are unlikely in vanadium, as most of the recent rise in vanadium demand is coming from China, which means China is likely to become a net importer if no new capacity is opened,” he said. “This also means that should China become import reliant for a meaningful share of vanadium, which is to be used in 2 significant national industries (steel and energy storage), vanadium will move up in criticality matrices for China – moving nearer to materials like iron ore, potash, and high purity quartz.”

        As demand in China picks up, Sardain anticipates the Asian nation will ramp up production.

        “With the current geopolitical environment, there is absolutely no way that China is going to rely on imports of vanadium,” he said.

        According to Goel, China isn’t the only country that is looking to be less reliant on imports.

        “Governments worldwide have recognized vanadium as a critical mineral, leading to increased support for emerging vanadium projects,” said Goel.

        He referenced Australian company Vecco Group which received an AU$3.8 million grant to advance the feasibility and design of a high-purity vanadium project in Brisbane.

        “However, such grants are not enough to bring a project from conception to production. The current low vanadium pricing environment is a barrier to increasing ex-China capacity,” he added.

        Australia to dominate growing supply capacity

        While China will dominate the vanadium market narrative in 2025, Australia is positioning itself to become a production hub.

        In addition to Vecco’s government support the company’s project was granted “coordinated project” status by the Queensland government. The status designation streamlines approvals for major developments with significant impacts, centralizing assessments and enabling public consultation.

        In late December, Explorer and developer QEM (ASX:QEM) also received coordinated project status from Queensland’s Office of the Coordinator-General for its Julia Creek vanadium and energy project.

        According to a July release, a scoping study completed on the Julia Creek deposit affirms the company’s aims to produce approximately 10,571 tonnes of 99.95 percent pure V2O5 and 313 million litres of transport fuel annually over a 30 year mine life.

        In mid-January Australian Vanadium (ASX:AVL,OTC Pink:ATVVF) was granted environmental approval for its Gabanintha vanadium project in Western Australia.

        The approval covers a mine, concentrator, processing plant, and supporting infrastructure, including a bore field and camp. The company is updating its Optimised Feasibility Study to integrate Gabanintha into its Australian Vanadium Project, one of the largest and highest-grade vanadium deposits.

        Trends to watch

        Underscoring the magnitude of weakness in the 2024 vanadium market Sardain recounted the factors that impeded price growth.

        He explained that despite several factors that should have boosted vanadium demand, the market remained surprisingly weak. Chinese monetary stimulus measures and stricter rebar standard enforcement failed to drive prices higher.

        Russian vanadium pentoxide exports to China have dried up, and supply uncertainties persist in South Africa. These conditions, which typically would have supported price increases, have had little impact, highlighting the subdued demand, especially in China.

        “To be really honest, I was expecting the market to pick up in the second half of 2024,” he said.

        Sardain continued: “I was expecting this to happen because I was looking at the interest rate in Europe, the ECB cutting interest rate. I was expecting some kind of recovery for the European economy. I was expecting the Chinese government to be more proactive. I was expecting the property market in China to stabilize. So, I was expecting some kind of rebound in the second half, which didn’t take place.”

        Although the 2024 market didn’t perform to expectation, Sardain sees promise in the months ahead.

        “I think that the market is currently bottoming out. I believe that we are very close to the stabilization of the property market in China. Whether it’s going to happen in Q1 or Q2 I don’t know, but definitely and maybe some kind of very, very, very mild recovery in the second half [of the year],” he said.

        Highlighting the market’s positive fundamentals CRU’s Goel also sees a price rebound in 2025.

        “We are estimating a global supply deficit in 2025 due to change in rebar standards and rise in vanadium battery demand, causing vanadium prices to rise,” said Goel. “ As more supply comes online in 2026 and 2027, by 2027 vanadium prices will come down when compared to 2025 prices, but crucially remain higher than the pricing in the last 12 months.”

        Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

        This post appeared first on investingnews.com

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        David Erfle: Cash Position Never Larger, Chaos and Volatility Ahead

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        For Erfle, interest from generalist investors is the key missing ingredient, but it may finally return this year.

        ‘That’s what we need — we need to get that generalist investor interest back into this sector. They left in 2012, 2013 and they haven’t returned,’ he explained during the conversation.

        ‘That’s created this incredible opportunity in gold stocks, and especially in juniors. We’ve got a lot of them that are bifurcating higher and doing well, but most are still underowned and definitely being ignored by the generalist investor.’

        Even so, Erfle suggested that market participants be cautious in 2025.

        ‘Be very careful this year in this market. Build up some cash, have some physical gold, have some junk silver just in case,’ he said. ‘Personally, as far as my investments are concerned … I’ve never had a cash position this large before, because I’m really concerned about the volatility and the chaos that I think 2025 is going to bring.’

        Watch the interview for more of his thoughts on gold and silver.

        Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

        This post appeared first on investingnews.com

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        British PM caps a week of frenzied diplomacy, as Ukraine’s European allies try to strengthen its hand

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        The British prime minister’s visit to Kyiv, his first since taking office in July, caps a week of hurried diplomatic activity by Ukraine’s NATO allies, keen to prove their commitment as uncertainty hangs over the incoming Trump administration.

        The “100-year partnership” – the centerpiece of Keir Starmer’s visit – did have an air of a PR stunt about it in a country that has no idea what will happen in one year, and the text of the agreement didn’t offer anything revolutionary. The UK is already the third biggest military donor to Ukraine (though it’s given just over 10% of what the US has) and the two countries inked a bilateral security cooperation agreement last year. The 100-year deal adds maritime security, social integration, and a new UK program to track stolen grain to the slate, but none of those comes close to the security guarantees Ukraine is looking for, a point Starmer indirectly acknowledged. “We will work with you and all of our allies on steps that would be robust enough to guarantee Ukraine’s security,” he promised in a press conference in Kyiv.

        Ukraine is on the clock here. The Institute for the Study of War estimates Russia gained more than 4,000 square kilometers of territory in 2024 (some of it retaken from Ukrainian forces in its own Kursk region), more than 10 times its total gains in 2023, though it came at significant manpower cost. The Trump administration has made clear it will push for a diplomatic solution that may involve Ukraine accepting these losses.

        And so “peace through strength,” as Starmer posted on X Thursday, has become the refrain. In other words, try to put Ukraine in the strongest possible position, economically, politically and militarily, to negotiate. The same motto was in used in Warsaw, Poland, on Wednesday when President Volodymyr Zelensky met Polish Prime Minister Donald Tusk, who promised to accelerate Ukraine’s path to EU membership. Germany, Ukraine’s second biggest military backer, sent its defense minister to Kyiv Tuesday, with the promise of a brand-new artillery system.

        Perhaps the strongest signal of support came from French President Emmanuel Macron, who called Zelensky on Monday to discuss, among other things, a French proposal to deploy “military contingents” in Ukraine – European boots on the ground – as a deterrent against any Russian effort to advance further into the country or beyond. “This is an issue that we are all discussing,” said Starmer Thursday, “but it must be capable of deterring future aggression. So that’s the test of any discussion, any conversation that we’re having.”

        And perhaps in a sign of the diplomatic challenge ahead, Zelensky and Starmer did not shy away from discussing the elephant in the room – the imminent transfer of power in the US. For Zelensky, who has actively tried to charm the incoming administration in recent weeks, even endorsing Trump’s claim he can end the war quickly, there was no talk of managing without Washington’s help. “We do not consider security guarantees for Ukraine without the United States, so it is too early to talk about the details,” he told reporters.

        Starmer took a conciliatory tone, paying tribute to the US contribution so far, and promising: “We can, we will continue to work with the US on this. We are working today. We will work tomorrow.”

        This post appeared first on cnn.com

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        There’s a sudden thaw in US-Cuba relations – but for how long?

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        Cuban officials on Thursday freed a prominent opposition activist, a last-minute diplomatic change in fortunes for the Biden administration which had sought his release but long seemed unable to influence events on the island.

        Jose Daniel Ferrer, the leader of one of the largest banned anti-government groups in Cuba, was released two days after a surprise flurry of diplomatic activity involving the communist-run island in the waning days of the Biden administration.

        On Tuesday, State Department officials announced the removal of Cuba from a US list of countries that support terrorism, also saying that Cuban officials had agreed to a Vatican request to free Cubans jailed for anti-government activity among other crimes.

        Cuban officials said they would “gradually” free 553 prisoners, although they cautioned that they were not issuing an amnesty and that those being selected for release could be forced to complete their sentences if they didn’t exhibit “good social behavior.”

        For more than three years, US officials in particular had called on the Cuban government to release Ferrer, who was convicted of participating in the July 11, 2021 protests, the most wide spread demonstrations to take place on the island since Fidel Castro’s 1959 revolution.

        “Don’t be afraid to fight for a free, prosperous and just Cuba,” Ferrer said in a telephone interview following his release Thursday with Radio Martí, a US government-funded radio station that Cuban officials have long accused of trying to destabilize the island.

        While the fiery comments by Ferrer, whom the Cuban government calls “a mercenary” in the employ of the US, are likely to make officials in Havana grit their teeth, for years their top priority has been to convince US officials to remove them from the list of countries that support terrorism, which incurs devastating economic penalties.

        Upon taking office, Biden seemed poised to do that until the 2021 protests that led to more than a thousand Cubans convicted in mass trials for rising up against the government.

        Following the protests, State Department officials conditioned any improvement in relations on the release of the protestors while Cuban officials said they had received no concrete guarantees that economic sanctions would actually be lifted and that the US should stay out of the island’s internal affairs.

        Even visits by Vatican representatives to the island to press for the release of the protestors were unable to break the deadlock until the final days of the Biden administration.

        But even as governments across the region applaud the surprise diplomatic breakthrough this week, it looks unlikely that the incoming Trump administration will build upon the brief thaw in relations.

        On Wednesday, Sen. Marco Rubio, Trump’s pick for Secretary of State and one of the most hardline opponents to Cuba’s government, blasted their removal from the terrorism list and lifting of other sanctions.

        “There is zero doubt in my mind that they meet all the qualifications for being a state sponsor of terrorism,” Rubio said during his confirmation hearing.

        While Rubio said during that hearing that any policy changes would be decided by President Trump, he seemed confident of the incoming administration’s position on Cuba.

        “I think people know my feelings and I think they know what the president’s feelings have been about these issues when he was president previously,” he said. “And nothing that the Biden administration has agreed to in the last 12 or 18 hours binds the next administration, which starts on Monday.”

        But ramping up pressure on Cuba again after more than 60 years of US economic sanctions was unlikely to force the government to adopt political reforms said Peter Kornbluh, the co-author of “Back Channel to Cuba: The Hidden History of Negotiations Between Washington and Havana.”

        “Biden got some results,” he said. “He has reminded the world of the model of diplomacy and backchannel efforts to advance US interests. Trump and Rubio represent a model of coercion: sticks versus Biden’s carrots.”

        Speaking to reporters Wednesday, Cuban Foreign Minister Bruno Rodriguez Parilla said if the incoming Trump administration did place Cuba back on the list of countries that support terrorism, it would prove his government’s point that the list had become political tool rather than a deterrent.

        “If another president came and included Cuba on the list again, we would have to ask ourselves what the reasons are, what the agencies of the US government would say, where the credibility of the government would be,” he said.

        This post appeared first on cnn.com

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