March 11, 2020 7:52am

As I stated last night, “Selling is NOT done YET!! Too much upside, too soon unless the supposed and projected stimulus meets expectation but, we all must be thankful that bottoms are potentially discovered.”

Q4 and FY19 earnings results: BioLife Solutions (BLFS)

March continues as a rollercoaster month – My version of the morning’s numbers is written to be informative; it’s what is about to happen 

Dow future are DOWN -3.11% (-772 points), S&P futures are DOWN -3.31% (-95 points) and NASDAQ futures are DOWN -2.84% (-237 points)

 

U.S. stock futures fell sharply pointing to another volatile session as the number of coronavirus cases around the world keeps rising;

European markets advanced with the pan-European Stoxx 600 climbed 0.9% by mid-morning as the Bank of England (BOE) announced an emergency cut to interest rates in an attempt to limit the economic impact from the new coronavirus;

Asia Pacific markets, Australia, South Korea, mainland China and Hong Kong tumbled as investors waited for developments around government stimulus with the coronavirus continuing to spread.

 

Data Docket: monthly consumer price figures at 8:30 a.m. ET and federal budget numbers are due at 2 p.m. ET.

 

Henry’omics:

Algorithms are running the markets while investors are monitoring the market for the impact of the coronavirus hoping for a fiscal and monetary policy responses.

The number of coronavirus cases around the world total more than 100,000, according to data from Johns Hopkins University. In the U.S. alone, more than 1,000 cases have been confirmed.

“We need to see meaningful support for economic activity and credit backstops especially for small businesses, not a targeted approach executed only by the executive branch,” Joe Kalish, chief global macro strategist at Ned Davis Research, said in a note. “We will likely need congressional involvement.  This is a potential solvency problem.” <CNBC>

U.S. President Donald Trump pitched a 0% payroll tax for employers and employees for the rest of the year during a meeting with Republican lawmakers on Capitol Hill Tuesday. Japan also unveiled a package worth about $4 billion on Tuesday to cope with the coronavirus outbreak, according to Reuters.

 

We are reacting by utilizing a stimulus package, not being proactive to those who or will need help but, who knew this weaponized virus would be let loose by the Chinese!

There I said it …

No help should be given to airlines, crew ships – help everyday people re reducing the currently sick by temporary hospitals and measures to reduce infection!

 

Tuesday night’s title: “the velocity of valuation heads north however, there still exists a level of market uncertainty, it’s time to buy cell and gene therapy equities especially if … they have announced Q4 and FY19 results. There will still be share pricing pain that will hopefully be weighed by forthcoming gains”

  • the NASDAQ closed UP +393.58 points (+4.95%);
  • the IBB closed up +2.31% and XBI closed up +2.26%;
  • the close was positive with an A/D line of 24/10, 1 flat of 35 covered;
  • the range of the 24-upside was +0.27% (FIXX) to +21.04% (MESO) while the 10-downside ranged from -0.20% (STML) to -16.29% (ADRO); 
  • 11 out of the 24-upside had higher than the 3-month average volume;
  • 5 out of the 10-downside had higher than the 3-month average volume;

 

Q1:

March registered 3 positive and 4 negative closes

February registered 9 negative, 9 positive closes, 3 vacation days and 1 holiday.

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:

let electronic trading and algorithm dig a bigger hole in your holdings

 

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.