July 12, 2018 8:21am

Momentum is on the side of the undervalued as the IBB is up +0.28%

Yet anxiety and nervousness remains an undercurrent

 

Pre-open indications: 2 SELLs and 2 BUY

 

I say today what others won’t, so you can do what others can’t!

 

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 point to a rebound

Dow futures are UP +0.77% (+189 points) and NASDAQ futures are UP +0.53% (+39 points)

 

U.S. stock index futures indicated a higher open on Thursday, as investors focus on earnings and monitor developments at a NATO summit in Brussels, Belgium.

European markets higher after latest trade war jolt;

Asian markets gain, with China leading the advance after recent trade shock

 

Data docket: new jobless claims due at 8:30 a.m. ET and inflation numbers due at the same time.

 

Henry’omics:

 

Investors seem to be more laid-back re their approach to the remainder of the weekd after yesterday’s upside movement!

When one gets lazy, distracted or just accepts the distortions in the sector's perception of valuation versus stock pricing - start selling!

Even though, I'm looking at being lazy - today - I'm NOT counting but, waiting for my "cards" to play-out!

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a +0.28% upside in Thursday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Thursday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) a +0.31% upside indicating in Thursday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a +0.54% upside in Thursday’s pre-open

 

From Wednesday’s night’s newsletter: “Another bounce-back from an oversold condition … even as the IBB was DOWN! – Just a game of pick-up-sticks; they will be thrown again! Expect more volatility moving forward on the conveyor belt of share pricing.”

I also stated, “It’s a question of sorting-out the useful from pointless data in an investment decision in this market!”

The iShares NASDAQ Biotechnology (IBB) was DOWN -0.29% after Wednesday’s -0.17% after Monday’s +0.52%, Friday’s 3.78%, Thursday’s +1.26% post last Wednesday’s holiday ….

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 Wednesday; 18 downside equities finished in a range of -$0.03 (PSTI) to -$1.70 (FIXX) while the 24 upside equities oscillated from +$0.01 (ATHX) to $18.00 (RENE.L) with 3 flat closes;
  • Wednesday’s decliners ranged from -0.08% <QURE -$0.03 > to -7.56% <FIXX -$1.70 > in 18 equities;
  • Wednesday’s gainers ranged from +0.08% <EDIT +$0.03> to +22.22% < RENE.L +$18.00> in 24 equities;

 

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

Asterias Biosciences INYSEMKT: AST) closed up +$0.05 to $1.60 after Tuesday’s +$0.10 to $1.55 on news of its Safety Review Committee (SRC) scheduled for the first clinical trial of AST-VAC2 to review the safety and tolerability recommending continuation of the study and moving to parallel enrollment of the second and third patients in the advanced cancer cohort (Arm A), as planned per the study’s protocol. Today, AST entered into an exclusive license agreement with The Regents of the University of California.  Under the agreement, AST has exclusive rights in all fields of use for a patent family that claims a method of improving recovery in a patient that has suffered an ischemic stroke by administering to the patient stem cell-derived oligodendrocyte progenitor cells.  The pending patent applications in the US, Canada, China, Japan, Australia, and before the European Patent Organization that are included in the exclusive license were filed after initial testing of AST-OPC1. With a positive pre-market indication of +$0.20 or +12.50% and news as a stimulant – Maintaining BUY:

CRISPR Therapeutics (CRSP) closed up +$1.78 to $54.19 with 902.1 M shares traded after Tuesday’s -$1.00 to $62.21, Monday’s +$0.33 to $63.21 and last Friday’s +$1.14 to $62.88 with 651.65 K shares traded <3 month average = 1.5554 M shares) post the previous Thursday’s +0.48 to $61.74 with 837.7 K shares traded. June ended at $58.76 and started at $67.13 with a low of $57.00.–  The “music” has to stop sooner than later – the aftermarket indicates a negative -$0.41 or -0.66% - Maintaining SELL;

Editas Medicine (EDIT) closed up +$0.03 to $38.00 with 533.1 K shares traded after Tuesday’s -$0.42 or -1.09% to $37.97, Monday’s +$0.45 to $38.39 with 792.4 K shares traded, Friday’s +$1.01 to $37.94 with 6.01.8 k shares traded <3 month average = 1.016 M shares> and last Thursday’s +0.01 to $36.83 with 734.5 K shares traded. 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:

Intellia (NTLA) closed up +$0.88 to $31.39 with 750.9 k shares traded <3 month average = 930.6 K shares> after Tuesday’s $30.51. Monday’s $31.36, Friday’s $31.44 and last Thursday’s $29.66. After reviewing the strategy and tactics of the CEO (albeit briefly) at the Oppenheimer meeting, I am optimist especially in regard to their partnering programs and cautious approach to the clinical path – BUY,

 

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.