May 17, 2019 8:12am

I still believe as I alluded to on Thursday a.m. “we’re headed into overbought territory”

Pre-open indications: 2 BUYs and 4 SELLs

If you think you understand perception, think again and then again. Liquidity remains a cause for concern!

 

 

Framing the headlines … perception which becomes reality!

 

Dow futures are DOWN -0.71% (-183 points), S&P futures are DOWN -0.73% (-21 points) and NASDAQ futures are DOWN -0.89% (-68 points)

 

US stock futures fall as trade tensions linger

European stocks also trade lower with the pan-European STOXX 600 dropping 0.6% after the opening bell;

Asian Pacific shares were mixed; Japan and Australian markets rose, while South Korean shares slipped;

 

Data docket: consumer sentiment numbers are due at 10 a.m. ET.

  • A number of Fed speeches are also scheduled for Friday. At 10 a.m. ET, Federal Reserve vice Chair Richard Clarida will be speaking on the Fed’s review of its monetary policy strategy, followed by New York Fed President John Williams’ speech in New York at 11:15 a.m. ET, and Dallas Fed President Robert Kaplan’s speech at 1:10 p.m. ET.

 

Henry’omics:

Stock index futures traded lower Friday as trade tensions between the U.S. and China continue to dominate investor sentiment.

I stated in last night’s newsletter, “Sector equities and markets rose on Thursday as the rising share pricing was better aligned with fundamentals; but if the fundamentals are not matching rising share pricing – look out below!”

  • Thursday’s range of the 29 upside was +0.53% (PSTI) to +26.05% (ADVM) while the 12 downside ranged from -0.04% (ONCE) to -4.47% (HSGX);
  • The last three (3) sessions, the IBB was up +3.06% while Monday and the previous three (3) sessions the IBB was down -4.06%;

From Thursday’s closing bell post, “sector wings it to the upside but, can it be sustained (?), volume is low to the up and downside. I say take it as you can get it (profit) – if it’s there!”

Last night’s LOW volumes have set-up a purge:

  • 9 out of the 29 upside had higher than the 3 month average volume;
  • 2 out of the 12  downside had higher than the 3 month average volume;

Q2/19 so far:

  • In May, there were 6 negative and 6 positive closes;
  • In April, there has been 10 positive and 11 negative closes;

 

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

Athersys (ATHX) closed up +$0.15 to $2.03. A typical “Icarus” flight which will melt and fall back into its usual position – depressed. Who can believe any consistent upside that stays? – Overbought – SELL;

Biostage (BSTG) closed flat at $2.58 after Wednesday’s +$0.18 and Tuesday’s down -$0.10. Who is buying this cash bankrupt company – fraud is deception and this CEO and CFO have the practice down pat. Just wait the evolving “story” is yet to be totally outed! Many questions surround unpaid quarterly liabilities to manipulate their reporting of their cash position, runway and lack of regulatory standing.  How many excuses does this CEO have left after too many BAD decisions affected past stake and shareholder’s equity? – Maintaining SELL;

Fate Therapeutics (FATE) closed up +$1.18 or +6.42% to $19.55 after Wednesday’s $18.37, Tuesday’s $17.28 and Monday’s $16.71. It’s a profit target take – SELL;

Ionis Pharmaceuticals (IONS) closed up +$1.23 to $67.78 after Wednesday’s +$0.19 to $66.74, Monday’s -$2.73 to $66.56 and Friday’s -$1.92 and exceeding “street” expectation – Maintaining BUY;

ReNeuron (RENE.L) closed up +$17.00 to $305.00 after Wednesday’s +$18.00 to 290.00, Tuesday’s +$7.00 to $272.00, Monday’s -$5.00 to $265.00 following last Friday’s -$6.00 at $270.00. RENE.L has a time differential trading of +$12.00 – BUY to SELL;

Verastem Oncology (VSTM) closed traded flat at $1.54 after Wednesday’s +$0.04 to $1.54. VSTM Wednesday announced a poster highlighting dose modification data from the P3 DUO study evaluating COPIKTRA (duvelisib) in patients with relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL) after at least two prior therapies. The poster, entitled “Effect of dose modifications on response to duvelisib in patients with relapsed/refractory (R/R) CLL/SLL in the DUO trial,” will be presented at the American Society of Clinical Oncology (ASCO) 2019 Annual Meeting, taking place May 31 – June 4, 2019, in Chicago. COPIKTRA, an oral inhibitor of phosphoinositide 3-kinase (PI3K), and the first approved dual inhibitor of PI3K-delta and PI3K-gamma, received approval from the U.S. FDA for this same indication in September 2018 – 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.