July 26, 2018 7:43am

Are we set to stand tall or fall?

Biotech could be a safe corner for quiet time

 

Pre-open indications: 2 BUYs, 5 SELLs and a trade into aftermarket strength (NTLA)

 

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U.S. stock index futures are struggling

Dow futures are UP +0.15% (+37 points) and NASDAQ futures are DOWN -0.78% (-58 points)

 

U.S. stock index futures pointed to a mixed open

European stocks move higher after US-EU trade gathering;

Asian stocks closed mixed, with losses in the Chinese markets deepening by the day's finish.

 

Data docket: jobless claims, and advance economic indicators are due out at 8:30 a.m. ET, followed by the Kansas City Fed's manufacturing survey at 11 a.m. ET.

 

Henry’omics:

U.S. stock-index futures mostly pointed to a drop at the open Thursday, led lower by Facebook’s (FB) big premarket fall after its disappointing quarterly report. One of the reasons for the decline was … weak guidance … “our” universe’s CEL should learn from others mistakes and pronto …

A day of watch your stocks, keep your hands off some buttons and wait for most equities to find their balance.

FB should get slammed and hopefully investors will seek slice in biotech?

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating 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) is indicating a -0.96% DOWNSIDE in Thursday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a+0.05% UPSIDE in Thursday’s pre-open

 

From Tuesday’s night’s newsletter: “the baton got passed in the race of distance in the sector closing positive as markets took-off at the close. Earnings (LPS or loss-per-share) are about to start which validates the shaky pricing.”

I also stated, “The sector is suffering snail’s pace growth; again it’s a momentum that has suffered. There is still a lot of risk in the sector as we approach “earnings” or LPS (loss-per-share) season. Sentiment is missing the beat as trading has hit a bottom; and I hope to see a reversal?”

The iShares NASDAQ Biotechnology (IBB) was UP +1.11% after Tuesday’s -0.14%, Monday’s -0.06%, Friday’s-0.08% and last Thursday’s +0.10% … for a five session aggregate of +0.93% …

 

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

  • Last week had 3 negative closes, 2 positive sessions and started this week, Monday and Tuesday experiencing negative sessions with Wednesday beating the curse to turn positive;
  • For the month so far, July has experienced 11 positive closes, 6 negative closes and 1 holiday;
  • Of the 45 companies covered on Tuesday; 16 downside equities finished in a range of -$0.03 (HSGX) to -$4.69 (SAGE) while the 24 upside equities oscillated from +$0.01 (BCLI) to $8.85 (BLUE) with 5 flat closes;
  • Wednesday’s decliners ranged from -0.06% < ONCE -$0.05> to -13.51% <BSTG -$0.52 > in 16 equities;
  • Wednesday’s gainers ranged from +0.23% <BCLI +$0.01 > to +9.62% <MDXG +$0.38 > in 24 equities;

 

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

bluebird bio (BLUE) closed up +$8.85 to $172.50 after Tuesday’s $163.65 and Monday’s $177.25. The aftermarket indication is a negative -$2.50 or -1.45% after the $550 M offering priced at $162.50. There will be a lot of flipping with the price move post the deal offered – Maintaining SELL;

CRISPR Therapeutics (CSP) closed down -$0.99 to $50.82 after Tuesday’s -$5.46 to $51.81 post Monday’s $57.72 and is down in the aftermarket another -$0.82 or -1.61% - Maintaining SELL;

Editas Medicine (EDIT) closed down -$0.64 to $31.82 after Tuesday’s -$2.91 to $32.46 post Monday’s $35.37 and has a negative aftermarket -$0.22 or -0.69% - Maintaining SELL;

Intellia Therapeutics (NTLA) closed down -$0.28 to $28.21 after Tuesday’s -$1.96 to $28.49 post Monday’s $30.45 and has a positive aftermarket indication of +$0.24 or +0.85% - Trade;

Fate Therapeutics (FATE) closed down again -$0.46 to $9.27 after Tuesday’s -$1.135 to $9.735 post Monday’s $10.87. FATE has been in MY oversold list having started July at $11.77, having seen a high of $12.44 and a low of $9.735 – Oversold - Maintaining BUY;

Pluristem (PSATI) closed flat at $1.28 and due to a patent award in Japan has a pre-market upside of +$0.02 (indication). Japan Patent Office has granted PSTI a patent for the treatment of Acute Radiation Syndrome (ARS) and its impact on the gastrointestinal tract. The patent titled “Methods for Treating Radiation or Chemical Injury” relates to intramuscular (IM) administration of adherent stromal cells, cultured under three-dimensional culturing conditions, for mitigating intestinal damage in patients that have been exposed to radiation or chemotherapy – BUY;

Sage Therapeutics (SAGE) closed down -$4.69 to $156.09 after Tuesday’s $160.78 and Monday’s $168.20. The aftermarket indication is a negative -$1.09 or -0.70% - SELL;

Solid Biosciences (SLDB) closed down -$1.35 to $37.89 following Tuesday’s $39.24 and Monday’s $40.17, last Friday’s $43.11 and the previous Thursday’s $44.11 – Overbought with a negative aftermarket indication of -$0.44 or -1.16% - SELL;

 

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.