Hottest Stocks in CW 26/21

The "Fear of Missing Out" – FOMO for short – leads traders to buy stocks whose price has already risen significantly. Last week this was the case with Editas Medicine. The U.S. biotech company which develops gene therapies based on the CRISPR method (molecular biology method to cut and change DNA), is benefiting from encouraging news from the industry. Competitor Intellia Therapeutics last week published clinical data, for the first time confirming the safety and efficacy of CRISP genome editing in living human organisms.

The "buying the dip" trading motive is evident when traders buy falling stocks in the hope of a bottoming out – in other words, the imminent turnaround. This is what happened with the Munich brake manufacturer Knorr-Bremse last week. Traders pounced on the stock after the security had previously lost a good 15 percent in value on a weekly basis. The stock price slide followed the announcement that Knorr-Bremse intends to become the main investor in German automotive supplier Hella. Knorr-Bremse investors presumably reacted with incomprehension because Hella is a passenger car supplier, while Knorr-Bremse specializes in trucks and trains.

The SDAX-listed semiconductor and microsystems technology manufacturer Süss MicroTec is currently staging a respectable rally after share price losses in April and May. Over the week, the stock gained a good six percent. This brings the stock back within reach of the multi-year high of 29.80 euros reached at the end of April. Close enough for many wikifolio traders. They sold stocks last week and thus realized profits.

Selling when prices are falling – this is what characterizes the "Jumping the Ship" category. That fate befell Varta last week. The stocks of the German battery group was down around 4.5 percent on a 7-day basis. Concerns about the strengthening of Asian competition in the button cell market are currently likely to cause volatility and sales of the stock.

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