February 20, 2020 8:24am

We are always contending with ramifications of profit-taking and infection undercurrents

Pre-open indications: 1 BUY and 7 SELLs

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

 

 

Dow future are DOWN -0.15% (-43 points), S&P futures are DOWN -0.18% (-6 points) and NASDAQ futures are DOWN -0.20% (-19 points)

 

U.S. stock index futures are pointing to a lower open after closing at record highs;

European markets fell with the pan-European Stoxx 600 edged -0.3% lower in early trade;

Asia Pacific markets were up after China lowered its benchmark lending rates to mitigate the economic impact of the coronavirus outbreak. Mainland Chinese stocks rose by the afternoon, with the Shanghai composite up about 0.5%. The Shenzhen composite also gained 1.031% while the Shenzhen component advanced 1.26%.

Data Docket: U.S. jobless claims data for last week is due at 8:30 a.m. ET and January’s leading index reading will be published at 10 a.m. ET

 

Henry’omics:

Earnings will be the key driver of cell and gene therapy sector share pricing action through the next 60 sessions.

Yesterday’s gold is today’s tin … to trim!

My true contrarian BUY is bluebird bio (BLUE) which has fallen since 2/12/20 -$11.12; haven’t seen the price so low since 12/5-9/19.

The coronavirus reminds us just how small the world is,” said Ed Yardeni, president and chief investment strategist at Yardeni Research. “Even as the infection has been largely contained to China, the business ramifications have rippled across the world.” <CNBC>

 

Wednesday night’s post’s title was: “are investors listening, earning’s season leaves whispers all through this and next month.”

  • the NASDAQ closed UP +84.44 points (+0.87%)
  • the IBB closed up +0.96% and XBI closed up +0.74%
  • the close was positive with an A/D line of 25/10, 0 flat of 35 covered;
  • the range of the 25-upside was +0.11% (VCEL) to +9.16% (CLLS) while the 10-downside ranged from -0.13% (SGMO) to -10.63% (BSTG);
  • 4 out of the 25-upside had higher than the 3-month average volume;
  • 3 out of the 10-downside had higher than the 3-month average volume;

 

Q1:

February registered 4 negative, 8 positive closes and 1 holiday – so far.

January registered 9 negative, 10 positive closes and 2 holidays.

Q4:

  • December register 11 negative and 10 positive closes
  • November registered 1 holiday, 12 positive and 8 negative close;
  • October registered 10 positive, 1 neutral and 14 negative closes;

 

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

Pre-open indications:

  • SELL: it will probably be a skim and trim upside session – CLLS, FATE, GBT, AXGN while maintaining on RENE.L, BCLI and PSTI
  • BUY: 1 – bluebird bio (BLUE) a true contrarian call as the average analyst price target was broadly unchanged at US$132, perhaps implicitly signaling that the weaker earnings outlook is not expected to have a lingering impact

 

 

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.