May 29, 2019 8:07am

In some days and many sessions it seems like a game played to initiate trading

Remember, if you choose Rock, you will win against Scissors but lose against Paper; if you choose Scissors, you will win against Paper but lose against Rock and if you choose Paper, you will win against Rock but lose against Scissor

Pre-open indications: 2 BUY, 1 SELL and 3 TRADES

Insight from 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 DOWN -0.65%% (-166 points), S&P futures are DOWN -0.56% (-16 points) and NASDAQ futures are also DOWN -0.74% (-54 points)

 

U.S. stock index futures were sharply lower Wednesday morning, as bond yields fell again triggering concerns about the economic outlook. Increasing trade tensions in the China-U.S. trade fight also weighed on markets.

European equities feeling anxiety and fears of a coming political battle between Italy and the EU have returned this week with markets or bourses continuing to tumble amid worries over the U.S.-China trade war and a potential budget standoff between Italy and the EU.

Asian Pacific markets declined following overnight losses in U.S. markets that saw the Dow (-237.92 points), S&P (-23.67 points) and the NASDAQ (-29.56 points) fall.

 

Data docket: the Richmond Fed manufacturing survey for May is expected at around 10 a.m. ET, with Dallas Fed services data set to follow slightly later in the session.

 

Henry’omics:

Dow, S&P and NASDAQ futures are indicating a negative open.

Many, actually MOST of the oversold are crying out … oversold and ripe for some picking!

Yet I am looking (and hoping) that many of the oversold are recognized and the overbought are moved to make room for the undervalued – typical game for rock paper scissors.

The Dow was set to add to its 4.7% decline so far in May with risk aversion increasing in recent days as bond yields dropped. The 10-year Treasury note yield, which touched a 19-month low on Tuesday, declined again in early trading Wednesday to 2.24%. A portion of the so-called yield curve further inverted as 3-month Treasury bills last yielded 2.3456%, well above the 10-year rate <CNBC>.

From Tuesday’s closing bell post, “comes easy, goes as fast with the sector opening positive and closing to the downside; it’s not hard to be right so often, it’s about refining expectation and defining insight.”

  • Last night’s close was negative with an Advance/Decline line (A/DL )of 16/27 and 0 flats and 2 acquired;
  • Tuesday’s range of the 16 upside was +0.07% (RARE) to +7.19% (RGNX) while the 27 downside ranged from -0.09% (ONVO) to -12.71% (BLCM);
  • 6 out of the 16 upside had higher than the 3 month average volume;
  • 8 out of the 27 downside had higher than the 3 month average volume;
  • Yesterday, the IBB was down -1.25% while the Russell 2000 index of smaller companies gave up 10.09 points, or -0.7%, to 1,504.02.

Q2/19 so far:

  • In May, there were 11 negative, 1 holiday and 8 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:

BioMarin Pharmaceuticals (BMRN) closed down -$4.57 or -5.1% to $84.50 after Monday’s market close and Friday’s +$2.10 to $89.07. BMRN's gene therapy for hemophilia A dropped potentially life-threatening bleeding events from more than a dozen to zero. But in a competitive market to find the next big and expensive treatment to help — or even cure — hemophilia A patients, questions linger around how long the treatment sticks with patients. On the surface, BMRN's disclosures around valrox Tuesday were positive. BMRN said a late-stage clinical trial found that eight patients met pre-specified criteria for Factor VIII activity levels (Ron Leuty, SFBT). That study and a P1/2 study dropped the median number of annual bleeding events to zero after three years, as valrox could hit the market by the end of 2020. The drop in the number of bleeding events is significant, both from a statistical point of view and for patients. – SELL to BUY;

CRISPR Therapeutics (CRSP) closed down -$0.28 to $36.72 after Friday’s $37.00, Thursday’s $36.81 and last Wednesday’s $38.82. Back and forth and oversold as May 1st opened at $38.82 – TRADE;

Editas Medicine (EDIT) closed down -$0.29 to $21.43 after Friday’s $21.71, Thursday’s $21.18 and last Wednesday’s $22.00 and the previous Tuesday’s 22.99 while may opened at $23.22 – Oversold – TRADE;

Intellia Therapeutics (NTLA) closed down -$0.09 to $14.76 after Friday’s $14.85, Thursday’s $14.42, and last Wednesday’s $14.81 following the previous Tuesday’s $15.78 coming off a decline on Monday’s $14.97 – Oversold, TRADE;

ReNeuron (RENE.L) closed up +$10.00 to $315.00 after Monday’s market holiday and Friday’s +$20.00 to $305.00 after Thursday’s -$2.50 to $285.00 after Wednesday’s $287.50 after Tuesday’s +$10.00 to $287.49, Monday’s -$14.50 to $302.50. RENE.L has a time differential trading with a market downside of -$11.00 or -3.49% – BUY 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.