May 21, 2019 7:56am
Cross currents abate; the wind is finally at our back for how long (?) while Peloton Therapeutics about to IPO gets acquisition offer by Merck
As I stated last night “think Tuesday and Wednesday, after every drop, there is usually a pop”.
Pre-open indications: 5 BUYs and 1 SELLs
Unique insights from what's likely to remain a volatile climate; RMi outlines preludes and aftermaths defining the daily dose of factors, investment thesis and objectivity!
The 6 W’s: Who, what, where, when, why and what of it …
Dow futures are UP +0.4% (+105 points), S&P futures are UP +0.48% (+14 points) and NASDAQ futures are UP +0.67% (+50 points)
Futures on the Dow, S&P, and NASDAQ were pointed to early gains at the open;
European markets are higher as the pan-European STOXX 600 edged 0.3% higher;
Asian Pacific markets were mostly higher as a temporary reprieve in U.S.-China trade tensions provided a breather;
Data docket: the Philadelphia Fed non-manufacturing survey for May is set to come out at around 8:30 a.m. ET, followed by existing home sales figures for April at around 10 a.m. ET.
The sector is oversold and sentiment is just a by-product of any upside moves!
U.S. stock index futures were higher Tuesday morning, as fears seem to abate as the oversold are such a target and the U.S. government temporarily eased some trade restrictions imposed on China’s Huawei Technologies.
- The move sought to minimize disruption for the telecom company’s customers around the world.
The temporary easing of trade restrictions won some respite with market participants ahead of Tuesday’s opening bell. However, an increasingly fraught atmosphere between Washington and Beijing has continued to keep financial markets on edge.
- Market nerves were calmed today … for now, wait there will be more and a different topic
From Monday’s closing bell post, “the sector is slipping and sliding, there is more to the decline than a trade war. Volume is extremely light, percentage (%) change of the up and downsides are marginal and breath is weak while volatility jumps!”
- Last night’s percentage (%) indicators: Monday’s range of the 11 upside was +0.02% (ONCE) to +3.66% (PSTI) while the 31 downside ranged from -0.21% (XON) to -7.51% (BLCM);
- Upside volume stats: Monday: 2 out of the 11 upside had higher than the 3 month average volume;
- Downside volume stats: Monday: x out of the 31 downside had higher than the 3 month average volume;
Q2/19 so far:
- In May, there were 8 negative and 6 positive closes;
- In April, there has been 10 positive and 11 negative closes;
In two (2) sessions, Monday and Friday, the IBB was down -2.04% - a swing needed!
Companies in my headlights – It’s your decision; I provide an idea and context: post earnings release:
Applied Genetic Technologies (AGTC) closed down -$0.06 to $3.67. OVERSOLD with clinical date in second half. Even as the bottom has appeared more and lately– Maintaining BUY;
Biostage (BSTG) closed flat again on Monday, Friday after Thursday’s $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;
bluebird bio (BLUE) closed down -$6.86 to $121.48 after Friday’s $128.34, Thursday’s $130.80, Wednesday’s $124.83 and last Tuesday’s $126.88. OVERSOLD - BUY
Ionis Pharmaceuticals (IONS) closed up +$0.06 to $67.46 after Friday’s -$0.38 to $67.40, Thursday’s $67.78, Wednesday’s $66.55, Tuesday’s $67.74– Maintaining BUY;
ReNeuron (RENE.L) closed down -$14.50 to $302.50 after Thursday’s +$17.00 to $305.00, Wednesday’s +$18.00 to 290.00, Tuesday’s +$7.00 to $272.00 and last Monday’s -$5.00 to $265.00. RENE.L has a time differential trading with an upside of +$3.49 - SELL to BUY;
Verastem Oncology (VSTM) closed up +$0.01 to $1.54 after Friday’s -$0.01 to $1.53, Thursday’s flat at $1.54 following Wednesday’s $1.54 and last Tuesday’s $1.50. Oversold– 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.