The CRISPR stocks are getting smoked this morning.  A new study is out suggesting CRISPR is dangerous and possibly doesn’t even work in humans.  No doubt it’s a damning study for CRISPR.

All recent research suggests that we know little about gene manipulation and it will probably take years if not decades to make this technology work.  Thus there are huge risks to investing in these stocks.  This hasn’t really deterred the market or speculators in a meaningful way before today.

Let’s turn to the price action of the stocks themselves.

Editas has seen sharp rallies and deep corrections over the past year.  False breakouts and many times where the stock looks dead.  That’s just where we are with these stocks.  They make a nice story to sell, so money keeps piling in.

After closing Friday in the 33s, this thing is opening in the 29s.  Momentum is broken.

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Looking at CRISPR Therapeutics, we see it recently broke a long time resistance.  It’s a great looking longer term chart.  I’m watching to see if the moving averages provide some support.  It’s entirely possible that this whole breakout could be a fake move, but we can’t make that assertion until the breakout is lost.

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The beliefs and incentives in many research labs are so strong that action will be action taken (new studies, reports) to disprove the negative findings and show there is still hope for the technology.

One positive is this actually emboldens the bears.  As we’ve seen time and again over the last few months in the market, any time bears get emboldened, they get destroyed.

Is that enough to prevent the music from stopping?  Who knows.  Although we can never know for sure ahead of time, the momentum is lost for now.