July 13, 2018 7:40am

As the sector churns and maybe burns

I say, stay in your lane on some equities!

 

Pre-open indications: 4 SELLs, 1 BUY and 1 HOLD (see note)

 

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U.S. stock index futures swing cautiously higher

Dow futures are UP +0.04% (+9 points) and NASDAQ futures are UP +0.10% (+7 points)

 

U.S. stock index futures fluctuate ahead of Friday’s open, as trade tensions between the U.S. and major economies took a backseat for the time being;

European markets edge higher amid global trade fears;

Asian stocks extend gains amid relief over lack of trade escalation

 

Data docket: import prices are due out at 8:30 a.m. ET, followed by consumer sentiment at 10 a.m. ET. Elsewhere, the U.S. FED is expected to publish its latest Monetary Policy Report to Congress.

 

Henry’omics:

 

I DON'T have much to say ... in one word - CAUTION!

 

As range bound trading lingers, low volume does NOT define sentiment which always hinges on which direction <down or upside> will flip

The issue of the day and coming weekend, concerns about a potential broadening trade war between the U.S. and major economies keep investors on edge,

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Friday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Friday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Friday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a -0.21% downside in Friday’s pre-open

 

The back-up of today's moves:

From Thursday’s night’s newsletter: “the continuous battle of the value – the oversold versus the overbought after a positive open, a neutral mid-day, a rebounding close.”

I also stated, “The issue, most of the upside moves come on low volume shadowed by greater volume to the downside

The iShares NASDAQ Biotechnology (IBB) was UP +1.17%, Wednesday’s -0.29%, Tuesday’s  -0.17%,  Monday’s +0.52% and last Friday’s +3.78 … for a weekly upside of +5.01% - I’m back to “smelling” some downside …

Of the 45 companies covered on Thursday; 19 downside equities finished in a range of -$0.03 (OVVO) to -$6.45 (RGNX) while the 24 upside equities oscillated from +$0.01 (BSTG) to $3.20 (BMRN) with 2 flat closes.

  • Thursday’s decliners ranged from -2.17% <ONVO -$0.03 > to -7.94% <RGNX -$6.45 > in 19 equities;
  • Thursday’s gainers ranged from +0.25% < BSTG +$0.01> to +3.20% <BMRN +$3.30> in 24 equities;

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:

BioLife Solutions (BLFS) closed up +$1.80 to $19.00. BLFS has spurted from $14.99, a $4.01 or +21.1%. “Icarus” flew too high and the wax on the wings (of the share price” -Maintaining SELL;

bluebird bio (BLUE) closed up again +$1.95 to $180.30 after Wednesday’s $178.35, Tuesday’s $177.50, Monday’s $173.00 and last Friday’s $169.95 following the previous Thursday’s $162.20, Wednesday’s $157.45 and Tuesday’s $154.00. There is a $26.30 or +14.58% premium – as BLUE hits another new high, I tend to suspect the target is on its back. The aftermarket indicates a downslide – Maintaining SELL

CRISPR Therapeutics (CRSP) closed up again +$0.86 to $65.05 after Wednesday’s +$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 -$0.25 or -0.38% - Maintaining SELL;

Homology Medicine (FIXX) closed up +$0.95 to $21.74 on very low volume – 29.6 K shares traded <3 month average = 142.5 K shares>. July started at $20.24, hit a high of $22.49 in eight (8) sessions – 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. The stock will more than probably take a hit after a +$1.08 or +3.44% upswing in one (1) day – BUY to HOLD and STAY in this stock; how many times have I been this emphatic - NEVER;

Sage Therapeutics (SAGE) closed up +$2.56 to $167.79. The CEOs of SAGE appeared on Jim Cramer’s “bells and whistles” show saying, “The medical community needs a reboot in the way it sees depression”, CEO Jeff Jonas argued on Thursday in the interview with Cramer. SAGE's postpartum drug has passed Phase 3 of clinical trials and is currently in the registration period for trials on a wider group of patients. The aftermarket indicates a positive +$0.21 or +0.13% - 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.