Answers - Finance

A barrel of oil bounced to over $60 Thu, which triggered a steep sell-off in the stock market Thu and Fri, although oil pulled-back to around $59 a barrel, and closed at $59.84 a barrel Fri.

There are many reasons why oil prices are high, including a "price premium" for potentially n

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

egative geopolitical events, the start of the hurricane season Jun 1st (which may affect refineries in the Gulf), the 4th of July holiday (which is the start of the summer driving season), and end-of-the quarter window dressing (which may keep oil prices and oil stocks high). However,

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

the most influencial factor is stronger than expected global economic growth. Both U.S. monetary and fiscal policies remain stimulative, and the global economy continues to expand at above trend growth. Moreover, financial markets have not slowed the global economy through negative "

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

Wealth Effects."

The price of oil has a weaker influence on U.S. producers, because the U.S. economy has become lighter (for example, the products Microsoft produces weigh little). Nonetheless, high oil prices will have some negative effect on earnings, particularly producers of heav

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

products (e.g. in China, which is moving from the Agricultural Revolution into the Industrial Revolution, while the U.S. is moving from the Information Revolution into the Biotech Revolution). Also, U.S. productivity growth is slowing, which is negative for earnings. On the consumpti

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

on side, a higher oil price is a tax, because consumers substitute other products for higher priced oil products. So, demand or prices for other goods fall. Consequently, a higher oil price will slow output growth and lower living standards rather than cause inflation.

The four chart

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

s below are same period daily charts of SPX (S&P 500), OEX (S&P 100), OIH (oil stocks index), and TLT (long bond ETF). SPX (the largest 500 stocks) has outperformed OEX (the largest 100 stocks) for several years. Currently, OEX is relatively undervalued compared to SPX. The four chart

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

s show the general stock market (i.e. SPX and OEX) OIH, and TLT generally rallied together recently. However, they may move in different directions over the next few weeks.

The first chart shows SPX fell to the congestion area (circle), which is a major short-term support area. Also,

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

SPX 1,192 has been a major (support and resistance) level, for several months, although SPX closed at 1,191 1/2. The Price-by-Volume bar (on left side of chart) shows additional support at 1,180 to 1,190. Both the 50 day MA, currently at 1,181 1/2 and the 200 day MA, currently at 1,17

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

4, are rising. Major resistance is in the low 1,200s (psychological resistance at 1,200, 10 and 20 day MAs, and top of congestion area). SPX has created a bearish head & shoulders pattern so far this year. There are open gaps at 1,174, 1,143, and 1,138, which may close this summer. En

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

d-of-the quarter window dressing by Thu, new quarter on Fri, and the 4th of Jul holiday Mon may be bullish for the stock market next week.

The second chart shows OEX fell below major support levels over the two day sell-off, i.e. below the 10 20 50 and 200 day MAs, below the congesti

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

on area (circle), and below the Price-by-Volume bar in the mid 560s. Next major support is in the low 550s, which is the middle of a previous congestion area. Major resistance is at 564 to 567 (where there are several resistance points). Over the past five years, the OEX to SPX ratio

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ell from 57% to 47%, after rising from 46% to 57% over the previous five years. Moreover, OEX underperformed SPX over the past two months. So, OEX is relatively undervalued compared to SPX.

The third chart shows OIH rallied from just over $84 to over $105 a share, while oil rallied f

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

rom $47 to $60 a barrel. If oil is in a $50 to $60 range, then OIH may consolidate and fall to the mid-$90s a share. The fourth chart reflects falling long bond yields recently (since TLT and long bond yields move in opposite dirctions). Also, the flattening of the yield curve recentl

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

y is predicting slower economic growth. Global economic growth is likely to slow over the next year or two, since the global economy cannot maintain above trend growth. Consequently, both the stock market and oil prices should fall (i.e. SPX OEX and OIH). However, slower disinflationa

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

ry growth or slower inflationary growth (i.e. stagflation) will determine TLT.

Economic reports next week are: Mon: None, Tue: Consumer Confidence, Wed: Final GDP and GDP Chain Price Deflator, Thu: Personal Income, Personal Spending, Unemployment Claims, Chicago PMI, and the FOMC ann

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

uncement, Fri: Construction Spending, ISM Index, Auto Sales, and Michigan Consumer Sentiment. There are notable earnings reports only on Wed: ORCL RIMM GIS COMS MON TONS.

There may be excellent option trading opportunities next week. If the price of oil pulls-back, OIH may fall, whil

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

e SPX and OEX may bounce (although, longer-term SPX OEX and OIH may fall). TLT may fall after the FOMC announcement Thu, since it may maintain its balanced stance on growth and inflation. Perhaps, OIH will trade between 100 1/2 and 104 1/2, while OEX trades in the high 550s to high 56

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

0s. TLT may pullback one or two points, and major support is at 93 1/2. A heavy producer e.g. X (U.S. Steel), which is beaten down, may rise on a pullback in oil prices. SPX puts may be a buy at 1,200. The Dow Industrials fell from over 10,600 to below 10,300 Thu and Fri (The Dow boun

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

ced sharply off 10,000 two months ago). So, DIA calls may be a buy. There also may be an excellent opportunity to make gains on earnings, e.g. GIS calls.

See http://www.peaktrader.com Forum Index Market Overview section for charts

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.answers.org.ua/article/104470/answers-Stocks-Oil-and-Bonds.html">Stocks, Oil, and Bonds</a>

BB link (for phorums):
[url=http://www.answers.org.ua/article/104470/answers-Stocks-Oil-and-Bonds.html]Stocks, Oil, and Bonds[/url]

Boomers are people just like you and me. Boomers are a prime and growing target audience. Does your product speak to them? Does your product’s packaging compel them to buy it? If not, you are missing a very important market segment.

Have you checked your company's email server for leak? A leaky email server can actually be an unwitting accessory to cyber crimes.

There are various programs available to help people become debt free. Here are a few tips on how to eliminate debts using the internet.

Tags

Links

Answers - Stocks, Oil, and Bonds

Related Articles: