Using High Volume News to Find Big Gains: Three Pharma Plays

NewsQuantified enables smaller investors to pursue the sort of proven news-based trading strategy that hedge funds have been using for years.

Here’s how it works.

Once you subscribe to our platform, you’ll have access to alerts hundreds of daily news events—and information on their impacts on the price of the associated stock.

Of course, not every news event drive major price changes. But we make numerous strategies for finding impactful events easy to implement. One strategy is to buy/short on news that appears to be driving heavy volume.

Our platform makes all the relevant news-price data easy to access and fully sortable. You can see the highest volume news of events of the day with a few simple clicks.

Here are just a few opportunities you could have accessed today by using NewsQuantified to identify events driving a high-volume of trades. Today’s examples all happen to be from the pharmaceutical sector.

Using NewsQuantified to Identify Profitable Volume in a Complex Market

1.  Arena Pharmaceuticals (ARNA): 30 percent gains in one day.

Performance simce event chart ARNA

Our subscribers were alerted that ARNA released Stage 2 clinical-trial results for its highly anticipated Ralinepag treatment.

Ralinepag has the potential to be a significant treatment option for patients with pulmonary arterial hypertension, and investors bought ARNA heavily on the news.

Non-specialist investors can’t easily interpret news about clinical trial results—but it’s easy to spot heavy volume and harvest the consequent gains.

And remember, you don’t have to buy right away to profit. Research suggests that big news events like this are associated with higher than average gains for the next 90 days.

2.  Neothetics (NEOT):  10% gains on news of a strategic shift.

Performance simce event chart NEOT

Volume analysis allowed NewsQuantified members to identify a different sort of news-based opportunity in the pharma sector.

Clinical-stage drug developer Neothetics has been struggling; they announced a new plan to seek either acquisition or another form of strategic partnership with another firm. Executives believe this option poses the strongest chance of delivering optimum value to the shareholders. Investors agree, and bought to the tune of a 10% gain on the news.

Not every news-driven buying opportunity is a flashy new technology. Our platform helps you identify quieter profit opportunities, too—like a struggling firm finding a more productive use for its capital.

3. Simulations Plus (SLP): Solid 8+% gains on a strong earnings report.

Performance simce event chart SLP

The news can offer a breadth of different analytical angles—even on one day in just one industry.

Simulations Plus, the foremost maker of simulation products used in researching new drugs, announced quarterly earnings that were up 12% from last year. This report beat analyst expectations and precipitated a substantial rally, sitting at 8.9% at the time of this writing.

Strategic shifts, new products, and strong earnings news produced three different ways to profit from the news in today’s market.

The world’s market news, the crowd’s wisdom, your profit.

Our system makes it simple to connect the dots and match big volume with associated news events. From there, it’s simply a matter of noting whether the momentum is upward or downward.

We provide the financial intelligence that you need to implement a common-sense trading strategy that is limited only by your access to the right information.

Click here to sign up for a free training today. You’ll see how easy to use our platform really is—and how many profitable trades it can unlock.

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