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The Light Crude Continuous Contract hit an all-time high at $70.85 a barrel, while Unleaded Gasoline Futures spiked 50% or $1 a gallon on Tuesday. However, oil clos

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ed the week at $67.57 a barrel, while gasoline finished the week up 15%. There's still uncertainty over the extent of oil and gasoline disruptions in the Gulf, over

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

the next few weeks or months, caused by hurricane Katrina. However, there are many forces keeping a lid on oil and gasoline prices.

The summer driving season ends

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

after Labor Day. President Bush urged Americans to conserve gasoline. Many Americans canceled driving plans for the Labor Day weekend, because of price spikes in re

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

ail gasoline. There were thousands of complaints about price gouging at gas stations last week. European governments are shipping oil and refined products to the U.

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

. The U.S. government opened the Strategic Petroleum Reserve, to oil firms, and suspended restrictions on regional gasoline standards. The strong U.S. economic expa

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

nsion has been slowing, and may continue to slow in coming months.

Oil and gasoline may have hit short-term tops on Tuesday, while it seems oil stocks had "blow-of

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

" tops (opposite of capitulations) Wednesday and Thursday. Consequently, oil stocks may be in a volatile range over the next few weeks, along with the stock market

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

in general.

The first chart below is an OIH weekly chart. Last week, OIH, an oil ETF (i.e. basket of oil stocks) traded between 112 and 122. I suspect, the volatil

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

trading range will continue, while oil stays in the $60s. OIH has major resistance in the low 120s and major support in the low 110s. So, there may be excellent op

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ortunities to trade OIH options (or options on other oil stocks) next week.

The second chart is an SPX daily chart. There's significant short-term support around 1

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

,200 (i.e. psychological support, 200 day MA, and Parabolic SAR buy signal). Last week, 1,225 was resistance. If SPX holds 1,225, it may trade up to 1,245 (recent h

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

gh), and 1,253 (multi-year Fibonacci level). However, SPX has open gaps at 1,174, 1,143, and 1,138.

September options expire in two weeks. Some current September M

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ax Pain expirations are: SPX 1,220 with the value of calls 150% more than the value of puts (which is bearish, because the put/call is a contrarian indicator). SPX

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

losed at 1,218. OEX 565 with the value of puts 130% greater than the value of calls (which is bullish). OEX closed at just over 563. QQQQ 39 with the value of puts

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

5% more than the value of calls. QQQQ closed at 38 3/4. Volatility normally picks-up two weeks before options expiration.

Economic reports next week are: Mon: None

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

(market closed for Labor Day), Tue: Revised Productivity, and Fed's Beige Book, Wed: Unemployment Claims, and Wholesale Inventories, and Fri: Export & Import Price

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

. Also, in September, the FOMC meeting, earnings warnings, and end-of-the-quarter window dressing should influence the market.

The uncertainty of oil and gasoline

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

prices, and economic data, caused by hurricane Katrina should contribute to volatility over the next two weeks. The stock market may continue to consolidate, short-

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

erm, until earnings warning season in late September, and third quarter earnings in October.

Charts available at PeakTrader.com Forum Index Market Overview section

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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This week I was involved in a situation where a salesperson that had lots of energy, didn't seem to be reaching the success or goals expected. It was clear that the sales activity was there. However, after listening and watching the salesperson in action. We knew the sales process wasn't being followed. The situation made me think about how easily we can slip into bad habits.

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