July 5, 2018 7:29am

Can it continue with the low volume spurts?

With macro and tariff issues hanging; some days, it’s just about trying to understand which side of the trade to be on or be ready for?

 

Pre-open indications: 4 SELLs

Out and about: Are gene editing stocks getting ahead of themselves i.e. pricing – what’s proven yet – nothing – are there surprises in the future to prove their true or negative value?

 

RMi reports the pricing component of pre-open indications that shed light on share pricing events and its follow-on value!

Want to know WHY, subscribe!

U.S. stock index futures set for solid gains

Dow futures are UP +0.66% (+159 points) and NASDAQ futures are UP +0.73% (+50 points)

 

U.S. stock index futures ticked higher ahead of Thursday’s open, boosted by a positive trading day in markets overseas.

European markets rally as auto stocks jump 3%

Asian stocks decline, with investors cautious as a first wave of tariffs looms

 

Data docket: ADP employment data is due at 8:15 a.m. ET, followed by jobless claims at 8:30 a.m. ET, services purchasing managers’ index at 9:45 a.m. ET, and the ISM non-manufacturing report at 10 a.m. ET. The Federal Open Market Committee is expected to publish the minutes from its latest central banking meeting at 2 p.m.

  • The latest round of non-farm payrolls data — a key piece of data which provides clues to investors as to how the U.S. economy is performing – is due Friday.

 

Henry’omics:

 

Does one REALLY want to be thinking of HOT equities in this holiday laden Thursday with Friday approaching – I’d be LIGHTENING the “load” of many – low volume “run-ups” scare me into being (SELL) trigger happy!

Thursday should be quirky with …

Market anxiety surrounding a potential trade war between the U.S. and other major economies continues to rattle investors. Investors are turning their attention to … Friday, when $34 billion worth of U.S. tariffs on China, with Beijing also expected to respond with its own levies on U.S. goods <CNBC>.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a +3% upside in Thursday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a +0.34% upside in Thursday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Thursday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a +0.59% upside in Thursday’s pre-open

 

From Tuesday’s night’s newsletter: “even I was surprised by the forward motion of the sector.”

Reiterating, ““It’s that time again, quarterly results are being prepared: loss per share (LPS), operational spending, ATM usage and the always lingering issues of stock-based compensation.”

The iShares NASDAQ Biotechnology (IBB) was DOWN -0.09% after Monday’s +0.79%,  Friday’s +1.73%,  Wednesday was a holiday and last Thursday’s was up +0.57%  … with appositive  aggregate of +3% - even as the pre-open indication is up, look for some weakness in the third trading (or fourth) day of July.

I always want to know what happened PRIOR to what might happen today – it sets a tone of consequence!

Of the 45 companies covered on Tuesday; 9 downside equities finished in a range of -$0.01 (CUR) to -$1.50 (RENE.L) while the 33 upside equities oscillated from +$0.03 (ONVO) to $3.45 (BLUE)with 3 flat close.

  • Tuesday’s gainers ranged from +0.55% < ALNY +$0.54> to +11.41% <BLFS +$1.71 > in 33 equities;
  • Tuesday’s decliners ranged from -0.14% <RARE -$0.11 > to -5.97% <BSTG -$0.27 > in 9 equities;

 

Companies in my headlights – It’s your decision; I provide the idea and context:

UniQure N.V. (QURE) closed up +$0.31 to $39.49 with 117.8 K shares traded <3 month average = 381 K shares> after Monday’s (+$1.3) at $39.19 with low volume of 193.8 K shares traded <3 month average = 384.6 K shares>. The last seven (7) sessions saw a range of $35.63 to $39.49 while June was a good month for appreciation having opened at $35.29; saw a low of $33.72 and a high of $39.94 in June’s twenty-one (21) sessions – Maintaining  SELL;

What has gene editing shown us to date – I haven’t see or have heard ground breaking RESULTS, just a could or might be platform:

CRISPR Therapeutics (CRSP) closed up +$1.21 to $61.26 with 1.6 M shares traded <3 month average = 497.9 K shares) after Monday’s $60.05 (+$1.29) having ended June at $58.76 and started at $67.13 with a low of $57.00 – Maintaining SELL;

Intellia Therapeutics (NTLA) closed up +$0.84 to $29.57 with 508.9 K shares traded <3 month average = 964.1 K shares> after Monday’s $28.73 (+$1.37) while ending June at $$27.36 and started at $25.45 with a low of $24.94 and a high of $30.79 - Maintaining SELL:

Editas Medicine (EDIT) closed down -$0.17 to $36.82 with 441.9 K shares traded <3 month average = 1.03 M shares>after Monday’s $36.99 (+$1.16).  EDIT ended June at $35.83 and opened (June) at $37.01; saw a high of $41.01 and a low of $35.68 - Maintaining SELL:

Gene editing stocks are again getting lofty after feeling little pain and are trading magnets with yet to be proven platform “integrity” – there is still a “stain” of “a disturbing link between the gene-editing technology and cancer”.  <HWM>

Editas' (EDIT) lead program, EDIT-101 for the treatment of Leber Congenital Amaurosis snips out a little section of DNA that allows a sight-related gene to be expressed normally, but it doesn't add anything. Intellia (NTLA) and its partner Regeneron (REGN) intend to disrupt the production of transthyretin by snipping out a section of DNA without replacing anything either. “Two separate laboratories have noticed the same problem. When replacing inherited mutations with functional copies, cells that lack a tumor suppressor protein called p53 survive the process a lot more often than ones that don't. Last July, Novartis (NVS) noticed that stem cells poorly tolerate the gene-swapping process, but they could increase gene-insertion success 15-fold by inhibiting p53 activity. More recently, a team from Sweden noticed a similar issue in retina cells.” CRISPR Therapeutics (CRSP) expects to begin clinical trials in Europe with a beta-thalassemia candidate that also snips but doesn't replace. Although p53 issues probably won't impede CTX001's progress, it could hinder the lead program in CRSP's immuno-oncology portfolio. <MotleyFool, 6/13/18>

 

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.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.