April 17, 2019 8:01am
There should be a sector-wide round-up of oversold stocks to the upside pen
Pre-open indications: 5 BUYs and 3 TRADEs
We crave explanations because they give us an illusion of control.
The 6 W’s: Who, what, where, when, why and what of it … the real question is who is going to do what?
Dow futures are UP +0.16% (+43 points), S&P futures are UP +0.23% (+7 points) and NASDAQ futures are UP +0.36% (+28 points)
Dow futures rose while S&P and NASDAQ futures are streaming higher;
European markets edge lower as the pan-European Stoxx 600 was down around 0.2% during morning trade, with most sectors and major bourses in negative territory;
Asian stock markets closed higher following the release of better-than-expected economic numbers from China
Data docket: International trade data figures out at 8.30 a.m. ET and wholesale investors due at 10 a.m. ET.
- Investors will also be keeping an eye on any further developments from the U.S. Federal Reserve. Philadelphia Fed President Patrick Harker will speak at 12.30 p.m. ET as well as St. Louis Fed President James Bullard.
Wednesday’s ETF 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 +0.23% UPSIDE;
With the indexes moving to the upside corral, I have expectation that MORE of the downtrodden oversold follow the herd to the pen.
Investors, test your skills in deducing the timing of a recovery … it’s time to trial our “breakaway roping, oversold tying, and volume bending” share pricing rodeo – they’re still a skill event.
From Tuesday’s closing bell post, “the risk-on/risk-off silhouette; the issues: downtrends are considered resistance as volume effects momentum.”
- 7 out of the 23 upside had higher than the 3 month average volume
- 7 out of the 17 downside experienced greater volume than the 3 month average
- In April, there has been 6 positive and 6 negative closes – so far;
- In March’s 21 sessions, there were 7 negative and 14 positive closes;
- Monday night, the IBB was down -1% after Monday’s -0.50% following Friday’s -0.76%, Thursday’s -1.70% and last Wednesday’s +1.10% - that’s -2.86% for the week time for an upswing!
Companies in my headlights – It’s your decision; I provide an idea and context:
Alnylam Pharmaceuticals (ALNY) closed up +$0.03 to $88.56 after Monday’s -$1.28 to $88.53 and has a positive +$0.24 or +0.27% aftermarket indication following news of positive complete results from the ENVISION phase III study of givosiran, an investigational RNAi therapeutic targeting aminolevulinic acid synthase 1 (ALAS1) for the treatment of acute hepatic porphyria (AHP). In the study, givosiran met the primary efficacy endpoint, with a 74% mean reduction relative to placebo in the annualized rate of composite porphyria attacks. There was a corresponding 90% median reduction in composite annualized attack rate (AAR) – Maintaining BUY;
CRISPR Therapeutics (CRSP) closed up +$1.93 to $39.08 after Monday’s -$0.76 to $37.15, Friday’s +$0.40 to $37.91, Thursday’s $37.51 and last Wednesday’s $38.82 with a downside indication of -$0.84 or -2.15% in the aftermarket. Overbought, take profit – TRADE;
Editas Medicine (EDIT) closed up +$0.68 to $27.22 after Monday’s +$0.45 to $26.54, Friday’s +$0.60 to $26.09, Thursday’s -$2.18 to $25.49 and last Wednesday’s -$1.31 to $27.67 with No aftermarket indication yet, I be taking “chips” off the table – TRADE;
Intellia Therapeutics (NTLA) closed up +$0.54 to $17.39 after Monday’s -$0.16 to $16.86, Friday’s-$0.16 to $17.03, Thursday’s -$0.59 to $17.19 and last Wednesday’s +$0.53 to $17.78 with an upside +$0.11 or +0.63% aftermarket indication – TRADE;
Mesoblast Limited (MESO) closed flat at $5.74 after Monday’s +$0.19 to $5.74. There is an expectation of upside on news of the FDA has agreed that MESO can submit on a rolling basis a Biologics License Application (BLA) for its allogeneic cellular medicine remestemcel-L in children with steroid-refractory acute Graft Versus Host Disease (SR-aGVHD). MESO will submit each module of the BLA to the FDA on a rolling basis as it is completed. The rolling process will provide opportunity for ongoing and frequent communication, and during this process MESO expects to be able to address any substantial matters raised by the FDA – BUY;
ReNeuron Group (AIM: RENE) closed down -$9.00 to $228.00 after Monday’s flat at $237.00, Friday’s -$4.00 to $237.00, Thursday’s +$25.00 to $241.00 and last Wednesday’s -$5.00 to $216.00 and is “pegged” up (+4.61) following news of a partnership with Forsun Pharmaceuticals – SELL to BUY;
Spark Therapeutics (ONCE) closed up +$0.06 to $111.16 after Friday’s -$0.62 to $111.12 following Thursday’s -$1.14 to $111.74, Wednesday’s $112.88 and last Tuesday’s $112.78– oversold, Maintaining BUY;
Verastem Oncology (VSTM) closed flat at $2.37 after Monday’s -$0.26 to $2.37, Friday’s -$0.09 to $2.63 following Thursday’s-$0.14 to $2.72 and last Wednesday closed at $2.86 – 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.