Opexa Therapeutics up 270% on Phase IIb Positive Results

• Ian Wyatt
• On 12:00 am EDT, Tuesday September 8, 2009

Stocks closed up today with a late afternoon rally starting during the last hour of trading. Investors reacted positively to take-over news and rising commodity prices, most notably gold, which broke through the $1,000 barrier before retreating to $993.60.

 

The Dow finished the day at 9,497, up 56 points; the Nasdaq ended at 2,038, up 19 points; and the S&P 500 closed at 1,025, up 9 points.

 

Stocks on the Russell 2000 drove up that index to 576, up nearly 6 points for the day.

 

Advances lead declines by a ratio of 3 to 1 on the NYSE, 3 to 2 on the Nasdaq, and 7 to 3 on the Amex.

 

Small-cap price gainers trading over 1 million shares include Opexa Therapeutics (NasdaqCM:OPXA - News) up 270% on positive news concerning its drug for treating multiple sclerosis. Patients taking the drug, Tovaxin, are those affected by relapsing remitting multiple sclerosis which is typically the initial stage of the progressive form of the disease. The company reported that 83% of patients taking the experimental drug were relapse-free after a year in the study. The firm also announced that it has plans to bring in similar patients to the first test for another Phase IIb study.

 

Other small-cap gainers for the day include Intellon Corporation (NasdaqGM:ITLN - News), up 42%; Cadbury plc (NYSE:CBY - News), up 38%; Akorn (NasdaqGM:AKRX - News), up 26%; and Odyssey Re Holdings (NYSE:ORH - News), up 26%.

 

*****Some selling early last week got the bears excited that the imminent crash they've been expecting was finally at hand. But once again, the Cash for Clunker Stocks Rally rolled on. The S&P 500 needs less than 10 points to set another new high for 2009.

 

I want to be clear that just because I've started calling this rally the Cash for Clunker Stocks Rally doesn't mean I think all stocks are clunkers, or that I think the market is on the verge of a collapse.

 

The Cash for Clunker Stocks Rally began when government stimulus efforts created a situation where Clunker Stocks like Bank of America (NYSE:BAC) and Citigroup (NYSE:C - News) could start to earn their way out of virtual insolvency.

 

All you have to do is look at a chart for AIG (NYSE:AIG) to see the Cash for Clunker Stock effect. The rising tide may have started with the Clunkers, but its lifting quality stocks, too.

*****Another blockbuster acquisition was announced over the long weekend. Kraft (NYSE:KFT - News) offered $16.7 billion for the U.K.'s Cadbury. The flow of deals we've seen in the last two weeks tells us two important things. One, the credit markets are much improved. And two, companies believe valuations are attractive.

 

Both are important factors for stocks prices.

 

*****Gold prices busted out above $1,000 an ounce in early trading today. As of this writing its just under that mark. The primary driver for gold is the insistence of central banks around the world to keep rates low and stimulus programs intact.

 

Of course, continued low interest rates are inflationary. And now that the global economy is growing again, the point where inflation picks up is closer.

 

Right now, it's just the unemployment rate that's keeping inflation in check. But once we see any improvement there, price inflation won't be far behind.

 

Gold at a $1,000 might sound high. But if you adjust for inflation, gold would have to rally to over $2,000 an ounce match the record highs set in the 1980s.

 

Clearly, there's a lot of upside for gold - and gold mining stocks. I've got a few high-quality gold miners in the Global Commodity Investing portfolio. One of them is up 25% in the last week and looks poised for at least another 25% move higher. Click here for details.

Buzz up!