TUES. MAY 4- Cancer Research

The approval by the FDA of Dendreon's (DNDN) prostate cancer vaccine Provenge was a major coup for the company. It is in fact the only product that the company has been developing; they took a huge gamble and won with several analysts estimating the company could reap billions of dollars in revenues within a decade. The company has waged a three-year war with regulators over its drug. It has been a frequent subject of discussion among traders and scientists alike. Provenge is the first therapeutic entity which is designed to treat the body's immune system to destroy tumors rather than the common alternative which is to attack the tumors directly. Pretty heady stuff- the stuff of what has been entirely science fiction until now. I don't think it's a stretch to note that almost everyone reading this piece if not everyone has been touched by cancer in some way whether it be directly or a family member or friend. Thus, the FDA approval of Provenge opens up an array of possibilities in the world of cancer research. For day traders, the focus can now go on to companies attempting to develop drugs in the cancer immunotherapy genre rather than just an anecdote to the problem (instead of solving the problem). Companies such as tiny Oncothyreon (ONTY) and Celldex Therapeutics (CLDX) to big companies such as Bristol Myers (BMY) are feverishly attempting to develop similar products using similar methods. What this now does is open up a whole new group of stocks for day traders- particularly now- as the focus once the DNDN fever settles down is "who's next." Thus, expect shares of tiny companies to randomly soar (and fall back) as rumors spread over the coming days much less years as people in general (including day traders) try to play the game of "who can be the next DNDN."

Markets throughout the world were weaker overnight with Hong Kong down 0.2%, but China down over 1%. Most European bourses are down 1% as well. Commodities are mixed with oil down over 1%, but gold up a little. The dollar is again the strongest currency with it up slightly against the yen and the euro now testing 1.31. The major triggers seem to be worries about the approaching oil slick to the U.S. coastline and rumors that Spain will soon need a bailout as unemployment exceeds 20% there. Futures are retracing about half of yesterday’s gains at this point. For today, look for a very choppy session with prices remaining on the downside. Track the euro and keep an eye on the drillers and earnings plays as your main stocks to trade on the session.

Reiterating-


If the whole story is not there -

If something is good, assume either a short thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified.

If something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified-


Good- The following stocks have good news and/or a strong technical pattern

SLXP- positive phase III results for Xifaxan

MCK- great earnings

NTRI- great earnings

CSTR- closed near a high

TEX- closed near a high on vague takeover rumors

ASIA- good earnings

PFG- decent earnings

SM- decent earnings

SNCR- good earnings

HLF- decent earnings

NKE- mentioned on “Mad Money” last night

CVS- decent earnings

IPXL- great earnings

CTSH- good earnings

PFE- decent earnings







Bad-The following stocks have bad news and/or a weak technical pattern

CLF- closed near a low

ENP- closed near a low

BZH- poor earnings and share offering

LF- poor earnings

HOLX- poor earnings

GNK- poor earnings

PBI- poor earnings

EOG- poor earnings

APC- poor earnings

FMC- poor earnings

DEER- closed near a new trend low

TNL- poor earnings

PEI- share offering

AOL –closed near a low

MAC- poor earnings

SU- poor earnings

TEVA- poor earnings

ADM- poor earnings

EMR- poor earnings

OSG- poor earnings

RDN- poor earnings

COCO- poor earnings

SHOO- poor earnings






Earnings:

TUES MAY 4 BEFORE

ADM AMT ARM

BHI BZH COCO

CTSH CVS DIN

EMR HNT HSIC

LNT MA MAC

MLM MMC MRK

MRO NYX OSG

RDC RDN RTI

SHOO SU TEVA

VNO

TUES MAY 4 AFTER

ACAS ATW BRE

CEPH CHK ECLP

FRT INT IPI

MWA MYGN ONXX

PXD SBAC SGY

TIE TRLG UNM

XCO XL


Good luck today.


Epiphany Trading, LLC


www.epiphanytrading.com


Erik R. Kolodny- Chief Markets Strategist
Brendan P. Byrne- President
Joseph R. McCandless- Managing Partner
D. Timothy Seaquist- Managing Partner