March 20, 2020 8:42am

Is that a hand of cards?

Are today’s advances a brief interruption from the extreme volatility and will sustainability be badly interrogated?

Pre-open indications: 1 BUY, 1 Maintaining SELL and 5 Sell into Strength

March continues as a rollercoaster theme month – my version of the morning’s forecast is written to what I perceive is about to happened 

Dow future are UP +2.04% (+405 points), S&P futures are UP +1.50% (+36 points) and NASDAQ futures are UP +3.13% (+228 points)

 

U.S. stock futures pointed to a second (2nd) day of gains as the Nasdaq futures hit a ‘limit up’ level ... although futures are coming off their pre-market highs;

European markets bounced as central banks and governments around the world adopt a “whatever it takes” approach to mitigating the economic hit from the coronavirus pandemic as the pan-European Stoxx 600 climbed 3.5% in early trade;

Asia Pacific markets were inclining, Japanese markets experienced a holiday as South Korea, mainland China (loan prime rates (LPR) on Friday were kept unchanged), Hong Kong and Australia all jumped with the MSCI Asia ex-Japan index gaining +4.32%.

 

Data Docket: The U.S. central bank has pushed out more than $200 billion in monetary stimulus this week alone; that number could be much higher by the end of Friday.

 

Henry’omics:

Referencing the title, Nasdaq-100 futures jumped nearly 5% and were “limit up,” meaning no trades could take place above those levels.

  • CME Group halts futures at certain bands in overnight trading in order to curb panic trading. Futures have hit these extreme levels multiple times during this volatile month, mostly to the downside.

 

Stimulated liquidity and any sustainability should or could quell the violence of volatility!

The last trading session of the week - TGIF ...!

 

Thursday night’s title: “the cell and gene therapy sector rise like the mythological phoenix; following violent and involuntary volatility continuing a state of panic and forced liquidations. Don’t expect much sustainability as electronic machine trading have no emotion or soul.”

  • the NASDAQ closed UP +160.73 points (+2.03%);
  • the IBB closed up +2.78% and XBI also closed up +5.76%;
  • the range of the 30-upside was +0.68% (SAGE) to +57.06% (PGEN) the 5-downside ranged from -0.87% (GBT) to -14.93% (MESO); 
  • 17 out of the 30-upside had higher than the 3-month average volume;
  • 4 out of the 5-downside had higher than the 3-month average volume;

 

Q1:

  • March registered 8 negative and 6 positive 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 8 negative, 12 positive and 1 holiday closes;
  • October registered 14 negative, 10 positive and 1 neutral closes;

 

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

Pre-open indications: pull back for a better prepared position - save the portfolio!

Maintaining SELL:

  • Fate Therapeutics (FATE closed up +$1.49 or +6.49% after Wednesday’s +$0.77 to $22.97;

BUY:

  • CRISPR Therapeutics (CRSP closed up +$1.10 or =2.86% after Wednesday’s +$1.47 to $38.47 and has a +$2.41 or +6.09% pre-market indication;

Sell into strength: algos and electronic trading are going to be ‘ruling” on the side of profit

  • Athersys (ATHX closed up +$0.43 and has a pre-market indication of +$0.05 or +2.70%;
  • Applied Genetic Therapeutics (AGTC closed up +$0.43 or +18.22% to $2.79 after being down -$0.29 to $2.36 which HAD aa -$0.12 or -4.30% aftermarket indication;
  • bluebird bio (BLUE closed up +$4.46 or +10.63% to $46.43 after being down -$1.58 and had a -$0.43 or -0.93%aftermarket indication;
  • Intellia Therapeutics (NTLA closed up +$1.37 or +12.33% to $12.48 after being down -$0.47 to $11.11 and has a +$0.02 aftermarket indication;
  • Sangamo Therapeutics (SGMO closed up +$0.57 or +10.25% to $6.13 after being up +$0.06 to $5.56 and has a +$0.17 or +2.77% pre-market indication;

 

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.