October 21, 2021 7:39am
There’s always a capricious twist to this market and slim pickings in pre-open indications
Pre-open indications: 2 SELLs, 1 SELL into Strength, and 2 BUYs with 1 Pump (or No Promote)
News: Intellia Therapeutics (NTLA +$3.85 or +2.98% in pre-open) the U.S. FDA has granted orphan drug designation to NTLA-2001 for the treatment of transthyretin (ATTR) amyloidosis.
What I provide is an intelligence daily. RMi outlines the prelude to the daily dose of facts and objectivity! My version of the morning’s “indications” is about what you need to know; it’s what could happen or materialize after the opening and what might happen during the session.
Remember that overnight and pre-open actions in futures doesn't necessarily translate into actual trading in the coming day’s session.
Dow futures are DOWN -0.27% (-95 points), S&P futures are DOWN -0.22% (-10 point) and NASDAQ futures are DOWN -0.18% (-27 point)
Stock futures declined in early trading on Thursday,
European stocks dipped slightly as the pan-European Stoxx 600 fell -0.2% by late morning,
Asia-Pacific stocks were mixed with Japan leading fellow loser China as investors scrutinized the latest missed bond coupon of developer China Evergrande Group in Hong Kong.
Economic data docket: jobless claims and home sales
Henry’omics:
Stock futures slip after Dow retakes record high …
The Dow jumped +0.43% which also hit its peak from mid-August, the S&P 500 climbed 0.37% for its sixth (6th) straight positive day, sitting just 0.2% below its all-time high while the Nasdaq closed Wednesday’s session slightly lower -0.05%.
- The Nasdaq had rallied for five straight sessions with a Wednesday fractional loss - that is an indicator.
Interesting note: The FDA on Wednesday authorized Covid vaccine booster shots made by Johnson & Johnson (JNJ) and Moderna (MRNA), another critical step in distributing the extra doses in the U.S. Key element: the “allowance” to “mix and match” vaccines, getting a booster shot from a different drugmaker than the one from their initial doses or secondary shot. The ruling now goes to the Centers for Disease Control and Prevention and its vaccine advisory committee, which has scheduled a meeting Thursday to discuss MRNA’s and JNJ’s booster data.
- The committee recommended the Moderna booster for elderly people and at-risk adults six months after they complete their primary series of shots, bringing it in line with the distribution plan for Pfizer and BioNTech’s booster. It also endorsed J&J boosters for everyone 18 and older who received the initial shot at least two months ago.
If you didn’t remember what happen at Wednesday night’s close and the quarter’s “number’s” impact, you won’t be prepared for today’s session:
- Wednesday’s evening’s recap: “pain follows gains with today’s spin down the drain while volume remains low. The pump and promote is ... BACK: Biostage (BSTG) closed +$0.30 with 8,356 shares traded after Tuesday’s flat with 1,500 shares traded, Monday’s flat with 4,000 shares traded.” … https://www.regmedinvestors.com/articles/12147
Q4: October, 7 positive and 7 negative closes
Q3/21:
- September, 1 holiday, 10 positive and 10 negative close
- August - 12 positive and 10 negative close
- July: 6 positives, 1 holiday and 15 negative closes
Companies in my headlights – It’s your decision; I provide an idea and context:
SELL into a Pump or no promote:
Biostage (BSTG) closed up +$0.30 with 8,356 shares traded after being flat at $3.00 with 1,488 shares traded after Monday’s -$0.065 with 4,041 shares traded, Friday’s -$0.035 with 528 shares traded, and last Thursday’s flat at $3.13 with 22 shares traded after last Wednesday’s +$0.09 with 3,492 shares traded – WOW.
- For a company with NO clinical trial, an a one (1) and a half year approved IND, four (4) employees and NO CRO <clinical research organization> initiation.
- What’s there to invest in – the “Sword of Damocles” hanging over its recent insurance company rejection of legal expense/costs of a terminal death suit against the company?
SELL:
bluebird bio (BLUE) closed down -$0.51 to $20.98 and indicates another fall of -$0.38 or -1.81% after the company split into two pieces,
Pluristem (PSTI) closed up +$0.08 to $2.71 with a negative -$0.05 or -1.83% pre-open indication,
BUY:
Editas Medicine (EDIT) closed down -$0.84 to $38.41 and has a positive +$0.42 or +1.09% pre-open indication,
Intellia Therapeutics (NTLA) closed down -$3.54 to $129.14 after Tuesday’s +$1.85 to $132.68 after Monday’s +$0.34 to $130.83 fallowing Friday -$1.28 to $130.49 and has a positive +$3.85 or +2.98% pre-open indication on news <above>.
SELL into Strength:
Sage Therapeutics (SAGE) closed up =$0.61 to $40.90 and has a positive +$0.58 or +1.42% pre-open indication
The BOTTOM LINE: Yesterday, the sector ended lower (with an advance/decline line of 12/21,1 flat and 1 acquired as traders took profits.
Don't forget about earnings season. It's highly risky to buy a stock just before earnings, and investors may want to take whole or partial profits on holdings with tiny gains.
As I stated, it was time to profit … before declines!
The stem, cell and gene therapy earnings will be beginning 10/28 Thursday with Alnylam Pharmaceuticals leading the releases with Sage Therapeutics (SAGE) on 11/2 and Athersys ATHX) coming 11/15 (to date).
What changes, there is too much uncertainty, that doesn’t appeal to my continued skepticism …
Sector stocks have traded choppily over the past several weeks as investors contemplated the implications of upcoming earnings releases that are coming …
RMi’s daily report is a primer that may say little or a lot; yet it serves as insurance that all indications are being examined and evaluated.
Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice. Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors. All investments are subject to risks. Investors should consider investment objectives.
Regulation Analyst Certification (Reg AC): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.
