RegMed Investors’ (RMi) pre-open: futures are pointing lower; how many times can I write, rollercoaster in a title

October 7, 2019 8:31am

Too many … last week, the IBB ranged -2.89% and the XBI +0.50%

Volume remains low, volatility high and percentage moves are all over the map

News: Verastem (VSTM) and its partner Yakult Honsha Co., Ltd has dosed the first patient in a P1b Japanese bridging study evaluating COPIKTRA® (duvelisib) in patients with relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL) following at least one prior therapy. Editas Medicine, Inc. (EDIT) and MaxCyte, announced a new clinical and commercial license agreement. EDIT will use MaxCyte’s Flow Electroporation® technology and ExPERT™ instruments for the advancement of engineered cell medicines, including EDIT-301, an experimental CRISPR medicine designed to durably treat sickle cell disease and beta-thalassemia.

The sector is … still what it is, until it isn’t and even then it doesn’t seem to be … that is after taking a deep breath and holding it

My version of the morning’s numbers is written to be informative than just about changes to fundamentals; it’s what happened or will beyond the headline and what could happen to the close

Dow futures are DOWN -0.20% (-54 points), S&P futures are DOWN -0.24% (-7 points) and NASDAQ futures are DOWN -0.25% (-20 points)

Futures on the Dow, S&P and NASDAQ are slightly lower. The moves in pre-market trade come after a media report suggested Chinese officials were increasingly reluctant to agree to a broad trade deal pursued by President Trump;

European markets traded cautiously as traders search for hints on the direction of Brexit and U.S.-China trade talks with the pan-European Stoxx 600 hovering around the flat line mid-morning;

Asia Pacific markets were mixed as investors awaited a fresh round of U.S.-China trade negotiations expected to begin later this week.

Data docket: consumer credit figures for August will be released at 3 p.m. ET.

Henry’omics:

Cause and effect; the world’s two largest economies have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

The outcome from this week’s trade discussions “will likely be pivotal in determining if the two sides can reach an interim trade deal that postpones further tariff escalation,” analysts at Eurasia Group wrote in a note last week. They said there is a 40% probability to an interim deal, and a 60% chance that Trump at least postpones further tariff hikes <CNBC>.

I am on the sidelines watching for a srum!

Friday night’s newsletter heading: “a “goldilocks” upside move. The jobs report was solid enough to dampen recession fears but, as I had forecasted “mundane”.

• The NASDAQ closed up +110.21 (+1.40%);
• The IBB closed up +0.74% and the XBI closed up +0.16%
• The close was positive with an A/D line of 24/17. 2 flats and 2 acquired;
• The range of the 24 upside was +0.14% (IONS) to +8.63% (RENE.L) while the 17 downside ranged from -0.41% (PSTI) to -7.62% (ONVO);
• 7 out of the 24 upside had higher than the 3 month average volume;
• 3 out of the 17 downside had higher than the 3 month average volume;

• October registered 1 positive, 1 neutral and 2 negative close, so far …
• September, there were 1 holiday, 11 negative, 7 positive and 2 non reported sessions;

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.