Dyax (DYAX)

Company

"Dyax Corp. is a biopharmaceutical company focused on the discovery, development and commercialization of antibodies, small proteins and peptides as therapeutic products for unmet medical needs, particularly in the areas of inflammation and oncology. Dyax currently has two recombinant proteins in phase II clinical trials. DX-88 is in phase II trials for the potential treatment of hereditary angioedema in collaboration with Genzyme Corporation. Dyax is also evaluating DX-88 in phase I/II studies for its potential use during open-heart surgery, specifically on-pump CABG (coronary artery bypass grafting) procedures. The Company's second clinical compound, DX-890, is in phase II clinical trials for the potential treatment of cystic fibrosis." (company website)

Buy

5-Aug-05. With my first lot of DYAX up by more than 20%, and a second lot up 8%, I added to my position with another lot.

The chart is still strong, and, with the earlier lots, my average share price is now $5.88, giving me cushion in case of a deeper pull-back.

• Price momentum (PPO) — very high
• Trend (ADX) — still strengthening, but may have reached a peak
• Money flow (CMF) — strongly positive
• Relative strength (RSI) — very strong, although the stochastic RSI (StochRSI) indicates it may be overbought
• Volume — stable with above-average-volume days being up-days

Sell

3-Oct-05. I had such high hopes for Dyax. And for the first three weeks, my expectations were being fulfilled, and I bought two additional lots. But then DYAX's fortunes reversed, and it has been bouncing along between $5.30 and $6.00. Although it opened today above the 50-day moving average, it could not hold the gain and started on down, triggering a stop-loss order set for $5.40.

I did make a small profit on the first lot, but it was wiped out — and more — by the loss on the second and third lots.