March 27, 2020 8:27am

It’s been asked, “take the surge in equities with a grain of salt; how much real buying is behind this week moves, besides the bailout-induced short-covering”

Pre-open indications: Could be a ‘whack-a-stock” sort of day by the “machines” – the possible 8

I say today what others won't, so you can do what others can't 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 -3.13% (- 700 points), S&P futures are DOWN -2.87% (-75 points) and NASDAQ futures are DOWN -2.68% (-210 points)


U.S. stock futures pointed lower open following a sharp rally sparked by expectations of “colossal” fiscal stimulus while markets shook-off the spike in unemployment data;

European stocks declined while policymakers scramble to come-up with a unified response while the pan-European Stoxx 600 fell 2.5% in early trade;

Asia Pacific markets were mixed with Australian stocks tumbling 5% while most major markets advanced, led by Japan as the MSCI Asia ex-Japan index rose 0.25%.


Data docket: China’s industrial profits for January-February plunged 38.3% year-on-year, according to the country’s National Bureau of Statistics. The period covered by the data release coincided with lockdowns announced by the Chinese government to combat the spread of the coronavirus in the country, where the disease was first reported.



Three (3) positive closes, the absence of news, a stimulus and an increase in the INFECTION CURVE, alternating ETF’s (IBB and XBI) with low volume “non -directional and minimal” as I wrote last night; I believe is a set-up for a “shaving” of share pricings as this market has placed its vote on cyclicals and momentum and growth.

What did markets expect other than a Friday decline after three (3) positives – another up session?


It’s a sprint, them a walk to be followed by another sprint type of market race – easily fatigued as investment in equity markets are pulled and carried across finish lines that keep moving!

I wouldn’t necessarily take the price actions in this volatile risk-oriented market and sector as a true reflection of what is and going to be.

I also wrote, “Once the pandemic inflexion rate has lowered or flattened the curve will volatility relent and share pricing move to the next, of the next and next new normal!”

To paraphrase a quote from Yogi Berra … “it ain’t over until it’s over”.

  • It ain't over till (or until) the fat lady sings … is a colloquialism which is often used as a proverb;
  • It means that one should not presume to know the outcome of an event which is still in progress;
  •  The phrase is used when a situation is (or appears to be) nearing its conclusion.

Remember, there is NO return on risk – keep your distance, there are too many unknowns in an immediate future of confusion and frustration!


Thursday night’s title: “recovery rally with liquidity and ETF dislocations still at stake as a market trades on bare-bones information.”

  • the NASDAQ closed UP +413.24 points (+5.60%);
  • the IBB closed up +4.70% and XBI also closed up +3.97%;
  • the close was positive with an A/D line of 27/7, 1 flat of 35 covered;
  • the range of the 27-upside was +0.24% (STML) to +14.22% (VCEL) while the 7-downside ranged from -0.38% (FATE) to -18.60% (BSTG -$0.80);
  • 8 out of the 27-upside had higher than the 3-month average volume;
  • 4 out of the 7-downside had higher than the 3-month average volume;


  • March registered 10 negative and 9 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.


  • December registered 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:

Could be a ‘whack-a-stock” sort of day by the “machines” as investors have little impact. Potential victims are: ALNY, IONS, CRSP, RARE, VCEL, BSTG, RENE.L and SAGE


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.