October 2, 2018 7:52am

I’m waiting for some of the oversold to “value-up”, maybe today, tomorrow  - likely if not by Friday

A black-and-white answer, cover the bases after steep dives

 

Pre-open Indications: 6 BUYs and 3 SELLs

 

A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.

RMi outlines preludes and aftermaths; I won’t apologize for being a “Devil’s Advocate” challenging views or consensus by building a possible case for alternative explanations -SUBSCRIBE!

U.S. stock index futures are fluctuating downward …

Dow futures are DOWN -0.27% (-71 points) and NASDAQ futures are DOWN -0.37% (-29 points)

 

US futures are sharply diving ahead of the open following Monday's market rally

European stocks were lower g, after anti-euro comments from an Italian party official sent Rome's bond yields up to multi-year highs.

Asia markets were largely negative as ties between the U.S. and China appeared to have taken a turn for the worse.

 

Data docket: NONE, although Fed Vice Chair Randal Quarles will be in Washington in front of the Committee on Banking, Housing, and Urban Affairs, where he is set to discuss implementation of the economic growth, regulatory relief and the consumer protection act.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a -0.16% DOWNSIDE in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a -0.16% DOWNSIDE in Tuesday’s pre-open

 

Henry’omics:

Markets around the globe are seeing red Tuesday, with markets in Asia and Europe trading mostly lower.

As to the title, “probability is defined as the likelihood of something is to happen. Many events can't be predicted with total certainty. The best we can say is how likely they are to happen!”

 

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

From Monday’s night’s newsletter: “just when you thought value would return to the oversold as the NASDAQ (-0.11%) stumbled and I having stated, “The oversold will be in a race to be overbought”– missed that “divination”, so after a deep decline, maybe tomorrow? Is it risk, sentiment or just plain volatility and time to skim any upside from sector participants?”

Of the 45 companies covered on Monday; 33 downside equities finished in a range of -0.25% (FATE) to -10.95% (BOLD) while 13 upside equity oscillated from +0.10% (RARE) to +7.48% (CUR +0.08) with 1 flat close (PSTI).

The iShares NASDAQ Biotechnology (IBB): a week’s history lesson; for a five session aggregate of +2.23% - consider a downside sprig!

  • In 1 session in October (out of 1) – there was 1 negative close
  • In 19 sessions in September – there were 10 negative closes and 9 positive close;
  • In 21 August sessions – 6 had negative and 15 had positive closes

 

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

Alnylam Pharmaceuticals (ALNY) closed up +$0.81 to $88.33 and is up in the aftermarket +$0.07 or +0.08%. Will it continue to be momentum driven? - BUY;

BioLife Solutions (BLFS) closed down -$0.33 to $17.17 after Friday’s $17.50, Thursday’s $17.23 and last Wednesday’s $16.70. BLFS announced that Q3 preliminary revenue from sales of media products reached a record $5.3 million which represents a 79% increase over Q3/17 yet; Q2’s revenue was $5.2M). I still think it is OVERBOUGHT. The 52 week change in pricing is +210.28% - there’s room for one heck of a lot of depreciation – SELL;

CRISPR Therapeutics (CRSP) closed down -$2.01); I still believe CRSP is OVERBOUGHT. 52 week change for CRSP = +141.16%. There is a lot of room for downside – Maintaining SELL;

Editas Medicine (EDIT) closed down-$1.35 and Intellia Therapeutics (NTLA) closed down -$1.49. The 52 week change is EDIT = +29.56% and NTLA = +4.72%, they’re both rebound candidates – two (2) BUYs;

Applied Genetic Technologies (AGTC) closed down -$0.45 to $6.85 after Friday’s $7.30 and Thursday’s $7.35 having jumped from $6.50 over a Wells Fargo report on comparables initial data of P1/2 positive results - Nightstar Therapeutics PLC (NITE) which is down -$1.91 or -9.35% to $18.52 today after Friday’s $20.43 and Thursday’s $18.62. NO data from late starting trials (2 years) - Maintaining SELL;

BioMarin Pharmaceuticals (BMRN) closed up +$1.65 to $98.62 and is up +$0.18 or +0.18% in the aftermarket . Momentum candidate– BUY;

SAGE Therapeutics (SAGE) closed down -$2.35 to $138 with an aftermarket indication of +$1.66 or +1.19%.90.  OVERSOLD – Maintaining BUY;

Verastem Oncology (VSTM) closed down -$0.74 to $6.51 with a FDA approval and Chinese collaboration has been subjected to trading pressures and OVERSOLD and has an aftermarket indication of +$0.18 or +2.84%. I am Maintaining 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.