A Different Kind Of Strength
Thursday’s momentum selloff hit the iShares MSCI USA Momentum Factor ETF (MTUM 0.00%↑) hard: it fell 3.7%. uniQure (QURE 0.00%↑) gained 1.9%, while ClearPoint Neuro (CLPT 0.00%↑) finished flat.
Both biotech stocks are also up for the week through Thursday’s close: uniQure by 6.1% and ClearPoint by 2.0%, compared with a 1.6% decline for the momentum ETF. Here’s that divergence, measured from last Friday’s close.
The Therapy And Its Delivery
In The Biology Won on June 17th, we explained why an FDA shift helped both companies.
uniQure’s AMT-130 is a gene therapy for Huntington’s disease. ClearPoint provides navigation and delivery technology used to administer it directly into the brain.
The regulatory opening mattered to the therapy’s developer and to the company helping deliver it. We returned to that relationship in the free section of Fundamentals Get A Vote on June 29th, when we discussed making explicit exceptions for biotech re-rating opportunities.
Making The Exception Explicit
ClearPoint still fails our strict technical entry gates. Its resilience alongside uniQure during this week’s momentum meltdown suggests both stocks may be finding a bottom here. That’s the reason we’re making an exception and adding a new bullish trade on ClearPoint today. Negative clinical news or renewed FDA pushback could still send both stocks lower.
Both of today’s ideas come from our Multibaggers, a subset of accounts on our Market Watchers X list with documented winners of 100% or more. The second trade adds a separate biotech catalyst. Full entries and exit plans are below.
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Today’s First Multibaggers Trade
Theme: Gene therapy progress drives delivery demand.
RSI: 32; Chartmill Technical Rating: 0; Setup Rating: 3; Fundamental Rating: 2.
