October 9, 2018 7:36am

It’s time or soon will be as I track aftermarket indications and more

After five (5) October negative sessions out of six (6) and in September – there were 10 negative closes and 9 positive sessions

Pre-open indications: 4 BUYs and 5 SELLs

RMi outlines preludes and aftermaths defining the daily metric’s dosage of facts and objectivity - SUBSCRIBE!


U.S. stock index futures are fluctuating downward

Dow futures are DOWN -0.59% (-156 points) and NASDAQ futures are DOWN -0.61% (-45 points)

 

U.S. stock index futures were lower ahead of Tuesday's open.

European stocks edged lower, amid simmering tensions between Italy and the European Union (EU) over the former's 2019 budget.

Asian markets were mostly lower; following yesterday’s U.S. market’s mixed finish while Chinese markets made a partial recovery after declines in the previous session that followed the country's central bank cutting the reserve requirement for banks over the weekend.

Data docket: the September NFIB Survey out at 6 a.m. ET.

  • The New York Fed President John Williams is due to co-host a central banking forum in Bali, Indonesia, at 9.15 ET time.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a NEGATIVE -0.03% DOWNSIDE in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating 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 NEGATIVE -0.33% DOWNSIDE in Tuesday’s pre-open

 

Henry’omics:

Equity markets are poised for a lower open as investors grapple with higher interest rates in the U.S. Economic data released last week showed an improvement in the health of the U.S. economy, which has pushed up expectations that the Fed will raise rates at a more rapid pace <CNBC>

Like a fix ... I need some UPSIDE!

From Monday’s night’s newsletter: “no snap, barely a crackle with a precipitous drop. Continuous divergence classifies lower bottoms as volume remains low.”

  • Of the 45 companies covered on Monday; 34 downside equities finished in a range of -0.02% (ONCE) to -8.66% (KOOL -$0.04) while 10 upside equities oscillated from +0.24% (BMRN) to +7.14% (BSTG) with 1  flat close (OSIR);
  • Concerning Monday’s close “snap, crackle and pop” title: Sage Therapeutics (SAGE +$0.49), BioMarin (BMRN +$0.24) crackled while bluebird bio (BLUE -$9.95) and Ionis (IONS -$3.73) dropped. The CRISPRS – lost even more snap (CRSP -$1.88, NTLA -$0.48 and EDIT -$1.01) while AGTC (-$0.39) continued its decline;
  • Volume was still LOW … look at the depth – 6 out of 10 of the upside had higher volume while the downside imploded 13 had greater volume out of 34.

The iShares NASDAQ Biotechnology (IBB): a week’s history lesson; for a five session aggregate of -4.76% - at the least consider an upside move after 4 negative sessions out of 5!

  • In 6 sessions in October – there were 5 negative closes and 1 positive 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:

Biostage (BSTG) closed up +$0.20 to $3.00 based on what – day trading? The terminal death suit is still a “sword of Damocles” over the company’s reputation after its reverse split “decapitates” those investors who bought-into a dysfunctional management team, a BOD that suddenly resigned and that is only 1% of their issues – MY OPINION. The BIG question, what do they really have “under-the-hood” – NOTHING. Maintaining SELL;

MiMedx (MDXG -$0.15) just can’t escape the WSJ headlines, “Cheaper products kept out of its offerings to VA hospitals. Maintaining SELL;

Osiris (OSIR) closed down -$0.00 with 37.7 K shares traded is still caught up in being ‘slogged” by day trading – how many CEOs have they had in three (3) years – 6 and what about NY’s Southern District court proceedings? Maintaining SELL;

CRISPR Therapeutics (CRSP) closed down -$2.00 after Friday’s +$1.00 to $28.57 to $28.57, last Monday’s -$2.01 -$2.62 on Tuesday, Wednesday’s -$0.72, Thursday’s -$1.44; That is a -$5.99 decline in six (6) sessions with a rebound in store as the aftermarket indication is a positive +$0.29 or +0.81% - BUY;

Editas Medicine (EDIT) closed down -$0.71 to $27.86 after Friday’s $28.57, Thursday’s $28.61, Wednesday’s $30.212, Tuesday’s $29.11 and last Monday’s $30.47. A rebound should be in-store – BUY;

Intellia Therapeutics (NTLA) closed down -$0.14 to $24.20 after Friday’s $24.34, Thursday’s $24.40, Wednesday’s $25.98, Tuesday’s $25.76 and last Monday’s $27.13. A rebound should be in-store – BUY;

Spark Therapeutics (ONCE) closed down -$0.01 after Friday’s -$0.40 to $48.62 and news of new data for SPK-3006, an investigational liver-directed adeno-associated viral (AAV) gene therapy for Pompe disease. The data from the IND  enabling studies were presented Saturday, Oct. 6, 2018, in an oral presentation, “Safety and efficacy evaluation of investigational liver gene transfer for secretable GAA in the treatment of Pompe disease,” during the Late Breaking Session at the 23rd International Congress of the World Muscle Society in Argentina – Maintaining BUY;

Vericel (VCEL) closed down -$0.50 to $13.50 and has a negative aftermarket indication of -$0.25 or -1.85%. VCEL has a 52 week change of +204.35%, there is pretty much room for more downdrafts. Also there product matrix has a seasonal response; also notice how some of their comparables have “stuffing the channel” issues or pricing questions to patient providers – SELL;

Verastem Oncology (VSTM) closed down -$0.24 after Friday’s +$0.13 to $6.93. News of the National Comprehensive Cancer Network® (NCCN®) adding COPIKTRA™ (duvelisib) capsules to the Clinical Practice Guidelines in Oncology (NCCN Guidelines®) for follicular lymphoma (FL) should generate some upside. HOWEVER, use of COPIKTRA is also associated with adverse reactions which may require dose reduction, the treatment delay or discontinuation of COPIKTRA. WARNINGS AND PRECAUTIONS are provided for infections, diarrhea or colitis, cutaneous reactions, pneumonitis, hepatotoxicity, neutropenia, and embryo-fetal toxicity – TRADE to 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.