June 19, 2019 7:31am
Two (2) weeks before the month and Q2 ends, re-balance risk, set appropriate “earnings” anticipation to ensure a portfolio is comfortably aligned with expectation
It’s all about the Fed making a decision on interest rates at 2.p.m. ET, with investors hopeful that Fed Chair Powell will signal a rate cut in the near future and not be played at musical “Chairs” or just cheap talk
Pre-open indications: 1 BUY and 6 SELL
You can lead a horse to water but you can't make him drink' is a proverb which means that you can give investors an opportunity but can’t force them to take it.
There is no breadline for share pricing and fact based intelligence!
Dow futures are UP +0.01% (+2 points), S&P futures are DOWN -0.04% (-2 points) and NASDAQ futures are DOWN -0.02% (-2 point)
U.S. stock index futures are fluctuating on Wednesday morning, as investors wait to hear from the Fed’s Chair Powell;
European markets edged lower as the pan-European Stoxx 600 traded -0.3% midway through the morning session;
Asia Pacific markets rose following positive developments overnight on the U.S.-China trade front;
Data docket: the biggest one of all, the Fed “outcome”
There’s a special focus on the outcome of the Fed meeting Wednesday ... not only are traders are keen to understand the chances of rate cuts this year, but they are also interested to know if President Trump will or could remove Powell from his position or was he (Trump all talk and bluster).
What more is there to say, the sector is co-dependent on the macro view of the Fed!
From Tuesday night’s post, “riding the sector trend as the market surges.”
- Tuesday closed POSITIVE with 33 decliners, 9 advancers, 1 flat and 2 acquired (AST & OSIR);
- The range of the 33 upside was +0.05% (PSTI) to +13.16% (XON) while the 9 downside ranged from -1.41% (MESO) to -12.25% (HSGX -$0.029);
- 3 out of the 9 downside had higher than the 3 month average volume;
- 9 out of the 33 upside had higher than the 3 month average volume;
- The iShares NASDAQ Biotechnology (IBB) indicator: Tuesday closed up +1.38% after Monday’s +2.96%, Friday’s -0.93%, Thursday’s +0.75% and last Wednesday’s +0.61% %;
Q2/19 so far:
- In June, there were 7 positive, 1 neutral and 5 negative close, so far;
- In May, there were 14 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:
bluebird bio (BLUE) closed down -$4.38 to $118.32 and has a positive +$1.08 or +0.91% aftermarket indication after news of pricing concerns about manufacturing hiccups will prevent the biotech company from selling its gene therapy until 2020. The gene therapy costs $1.8 million; double that of SVB Leerink analyst Mani Foroohar's estimate for $900 K. Before BLUE can launch in Europe; it will have to make changes to its manufacturing process. BLUE closed Monday at $122.70, Friday at $117.66, Thursday’s $123.94 and last Wednesday at $117.46 while experiencing a 52 week -30.99% downdraft – BUY;
Intrexon (XON) closed up +$1.00 to $8.60, a +13.16% increase in one session on news of a medical cannabis partnership. This chart is “toppy” and XON has its troubles – SELL;
Regenxbio (RGNX) closed up +$1.60 to $53.03 and has a positive +$0.12 or +0.23% aftermarket indication. RGNX has a 52 week change of -15.06% after Monday’s $51.43, Friday’s $48.27, Thursday’s $49.43 and last Wednesday’s $46.85 – SELL;
ReNeuron (RENE.L) closed down -$5.00 to $237.50 after Monday’s -$7.50 to $242.50, Friday’s +$20.00 to $250.00, Thursday’s $230.00 and last Wednesday’s $232.00. RENE.L has been floating on the market’s downfalls with a downdraft of -$17.75 or -7.47% in the differential trading – BUY to SELL;
uniQure N.V. (QURE) closed down -$3.13 to $78.01 after Monday’s +$8.59 to $81.14, Friday’s +$1.34 to $72.55 after a “run” of putting itself up for sale, take the money - Maintaining SELL;
Sage Therapeutics (SAGE) closed up +$2.61 to $182.39 after Monday’s +$5.52 to $179.78, Friday’s $174.26, Thursday’s $175.84 and last Wednesday’s $168.73 – chart still looks “toppy” – Maintaining SELL;
Voyager Therapeutics (VYGR) closed up +$1.13 to $27.88 after Monday’s $26.75, Friday’s $24.24, Thursday’s $24.68 and last Wednesday’s $23.53. VYGR restructured its gene therapy relationship with Sanofi Genzyme. Under the terms of the agreement, VYGR gains worldwide rights to the VY-HTT01 Huntington’s disease program and ex-U.S. rights to the VY-FXN01 Friedreich’s ataxia program. The ex-U.S. rights to VY-FXN01 are, in turn, transferred from VYGR to Neurocrine Biosciences under the terms of the collaboration agreement between VYGR and Neurocrine Biosciences announced in January 2019. Additionally, Sanofi Genzyme obtains exclusive option rights to select novel AAV capsids owned or controlled by Voyager for exclusive use for up to two non-central nervous system (non-CNS) indications. VYGR has a 52 week change of +22.88% – 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.