April 12, 2019 7:41am
Oversold is a subjective term; since traders and analysts all use different tools, I see oversold equities while some see stocks that have further to decline
Pre-open indications: 6 BUYs and 3 TRADEs
Yesterday’s tin could be today’s gold!
The 6 W’s: Who, what, where, when, why and what of it … so who is going to do what?
Dow futures are UP +0.69% (+181 points), S&P futures are UP +0.51% (+15 points) and NASDAQ futures are +0.48% (+37 points)
U.S. stock index futures were slightly higher Friday morning, as market participants awaited the start of earnings season;
European stocks edge higher amid investor caution over global growth;
Asian stocks were mixed; China’s March trade surplus soars past expectations;
Data docket: import prices for March and consumer sentiment figures for April will be published at 8:30 a.m. ET and 10:00 a.m. ET, respectively.
Friday’s indications in the pre-market:
The iShares Nasdaq Biotechnology (IBB) is NOT indicating;
The SPDR S&P Biotech ETF (XBI) is NOT indicating;
The Health Care Select Sector SPDR ETF (XLV) is NOT indicating;
The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.35% UPSIDE;
Market focus is largely attuned to corporate earnings, with major U.S. banks set to get the ball rolling later in the session.
Sector focus is to avoid the wall of worry and depreciating equities to see them crawl their way up and forward.
TGIF, it has been a long week and looking forward to a long weekend with Monday’s start of the Boston Marathon which starts a mile away on their 26.5 mile run to Boston – it’s usually a day of being shut-downs (streets) and neighborhood cocktails that start early.
From Thursday’s closing bell post, “more than a few blips, pricing declines outpaced Wednesday’s upside rally ran out of confidence. The sector is what it is, until it isn’t and even then it doesn’t seem to be… volume <versus 3 month average> was low to the downside (7/32) and a bit higher to the up (6/11).”
- The Advance/Decline (A/D) line close was negative with an A/DL of 11/32 and 1 flat and 1 acquired;
- Range of the 11 upside was +0.0% (O) to +% (B) while the 32 downside ranged from -0.17% (KOOL -$0.0005) to -9.59% (BLCM).
- 6 out of the 11 upside had higher than the 3 month average volume
- 7 out of the 32 downside experienced greater volume than the 3 month average
- In April, there has been 5 positive and 4 negative closes – so far;
- In March’s 21 sessions, there were 7 negative and 14 positive closes;
- Thursday night, the IBB was down -1.70% after Wednesday’s +1.10%, Tuesday were down -1.61% after Monday’s -0.43% - time for a mild upswing or lateral move!
Companies in my headlights – It’s your decision; I provide an idea and context:
Alnylam Pharmaceuticals (ALNY) closed down -$2.79 to $88.10 after Wednesday’s +$1.98 to $90.89 and Tuesday’ -$1.26 to $88.91, Monday’s -$2.62 to $90.17 and last Friday’s +$1.34 to $92.79 following news of Regeneron Pharmaceuticals partnered to develop treatments for eye and central nervous system diseases using RNA interference. Regeneron will make a $400 million upfront payment to Alnylam and to purchase $400 million of Alnylam equity at a price per share of $90. ALNY is eligible to receive up to an additional $200 million in milestone payments upon achievement of certain criteria during early clinical development for the programs – Maintaining BUY:
CRISPR Therapeutics (CRSP) closed up +$1.14 to $38.81 after Tuesday’s -$0.99 to $37.68 with a positive +$0.08 or +0.21% aftermarket indication. Monday closed at $38.67 following last Friday’s $38.42 – TRADE;
Editas Medicine (EDIT) closed down -$2.18 to $25.49 after Wednesday’s -$1.31 to $37.51, Wednesday’s +$1.00 to $27.67, Tuesday’s -$0.58 to $26.67 and has a positive +0.51 or +2% aftermarket indication. Monday closed at $27.25 following last Friday’s $27.48 – TRADE;
Homology Medicine (FIXX) closed down -$0.06 to $22.05 and has a positive +$0.25 or +1.13% upside aftermarket indication following Wednesday’s $22.11, Tuesday’s $23.57, Monday’s $29.56 and last Friday’s $30.34 following a 5.55 M share offering priced at $22.50 - BUY
Intellia Therapeutics (NTLA) closed down -$0.59 to $17.19 after Wednesday’s +$0.53 to $17.78, Tuesday’s -$0.92 to $17.25 with a positive +$0.12 or +0.70% aftermarket indication. Monday closed at $18.17 following last Friday’s $18.41 and last Thursday’s $18.15 – TRADE;
ReNeuron Group (AIM: RENE) closed up +$25.00 to $241.00 after Wednesday’s -$5.00 to $216.00, Tuesday’s +$51.00 to $222.00 and is “pegged” up (+$14.00) the U.S’s pre-market open news of a partnership with Forsun Pharmaceuticals for the development, manufacture and commercialization of CTX and hRPC cell therapy programs in the People's Republic of China. ReNeuron will receive US$7.9 million on entering into the Agreement, up to US$7.9 million in near-term operational milestones and up to US$10.5 million in future regulatory milestone payments. In addition, post-launch profit threshold milestone payments are due at a rate of 5% of annual net profits derived from the licensed products in the year the relevant net profit milestones are exceeded, leading to total estimated milestone payments of US$104.8 million provided all milestones and profit thresholds are successfully met - BUY;
Spark Therapeutics (ONCE) closed down -$1.14 to $111.74 and has a positive +$0.36 or +0.32% aftermarket indication. Wednesday closed at $112.88, Tuesday’s $112.78, Monday’s $112.81 and last Friday’s $112.57 – oversold, BUY;
Ultragenyx Pharmaceuticals (RARE) closed down -$1.65 to $71.48 and has a positive +$0.64 or +0.80% aftermarket indication. Wednesday closed at $73.13, Tuesday $72.01, Monday at $73.36 and last Friday at $74.36 – oversold – BUY;
Verastem Oncology (VSTM) closed down -$0.14 to $2.72 and has a positive +$0.06 or +2.21% aftermarket indication. Wednesday closed at $2.86, Tuesday $.2.84, Monday at $3.01 and last Friday at $3.14 – oversold – 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.