April 21, 2020 7:51am

With this market volatility, investors should plan an exit strategy before executing any perceived opportunity

News: Athersys (ATHX) closed its 28.58 million share offering with proceeds of $57.6 million; Sangamo Therapeutics (SGMO) and Mogrify LTD (private) have executed a collaboration and exclusive license agreement for SGMO to develop allogeneic cell therapies from Mogrify’s proprietary induced pluripotent stem cells (iPSCs) and embryonic stem cells (ESCs) and SGMO’s zinc finger protein (ZFP) gene-engineered chimeric antigen receptor regulatory T cell (CAR-Treg) technology.

Pre-open indications: 10 SELLs into Strength and 3 BUYs with aftermarket indications

Sector intel, ideas, fact-based opinions and Insight in a volatile climate; check the BOTTOM LINE and profit from RMi’s analysis!

Dow future are DOWN -1.93% (-454 points), S&P futures are DOWN -1.46% (-41 points) and NASDAQ futures are DOWN -0.88% (-77 points)

 

U.S. tock futures pointed to a down opening on Tuesday as oil prices remained under pressure following an unprecedented wipeout a day earlier.

  • The more actively-traded June oil contract shed earlier gains and fell about 1%. The May contract, which triggered Monday’s stock sell-off with a bizarre move below zero into negative prices, also shed earlier gains and returned to negative territory.

European markets traded sharply lower as oil market volatility and the coronavirus outbreak remained in focus with the pan-European Stoxx 600 falling almost 2%

Asia Pacific markets fell as uncertainty weighed over the health of North Korean leader Kim Jong Un; he is supposedly in “grave danger after a surgery. Hong Kong’s Hang Seng index fell along with mainland China and the Shanghai composite while South Korea’s Kospi dropped as Japan’s Nikkei fell and Australian’ equities slipped

 

Data docket: employment figures in the U.K. rose more slowly in March than in February — an early sign of the coronavirus’ impact on the country’s economy.

 

Henry’omics:

Indexes dropped on Monday setting-up another l volatile week, with the Dow falling nearly 600 points, as an unprecedented plunge in oil prices weighed on investor sentiment.

Yet the RegMed/cell and gene therapy sector was NOT mired in the indexes’ brushfire but, it does forecast anxiety or fear of peaks – I say so!

Reiterating, I do NOT TRUST ANY upside/inclines as they alternate (real words – stripped of value by algorithms and electronics) too frequently!

 

The BOTTOM LINE: My on-going mantra, “"Worry about losing money, not making money."

Optimistic attitudes as the reopening of the economy is heading for an intense debate but, face headwinds.

The government sponsored “Paycheck Protection Program” has run out of money, but it’s not the only option to keep some small businesses afloat as TOO MANY undeserving companies and major universities with huge endowment SKIM and abuse small businesses who need access to capital.

Headwind problems are more attuned to a force-10 hurricane …

 

Monday night’s title: “sector closed positive as indexes dived; however, the RSI (the relative strength index) is overbought; meaning my 35 sector companies are vulnerable to price skimming.”

  • The NASDAQ closed DOWN -89.41 points (-1.03%);
  • The IBB closed up +1.29% and XBI also closed up +3.72%;
  • The CBOE Volatility Index (VVIX: INDEX) was up +5.21 points or +13.79% at 43.41;
  • Monday closed positive at 30/10;
  • 16 out of the 30-upside had higher than the 3-month average volume;
  • 3 out of the 10-downside had higher than the 3-month average volume;

Q2:

  • April registered 6 negative, 7 positive closes and 1 holiday.

Q1:

  • March registered 11 negative, 10 positive closes and 1 neutral close.
  • February registered 9 negative, 9 positive closes, 3 vacation days and 1 holiday.
  • January registered 9 negative, 10 positive closes and 2 holidays.

 

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

SELL into strength:

  • Alnylam Pharmaceuticals (ALNY +$10.76 after Thursday’s +$6.22, Wednesday’s +$1.06, Tuesday’s +$1.71 and last Monday’s +$2.63) with 9-sessions of upside;
  • CRISPR Therapeutics (CRSP - aftermarket indication of +$0.30 or +0.57% having closed up +$.04 after Friday’s +$1.91 after Thursday’s +$1.12 and Wednesday’s +$1.38 with 4-sessions of upside),
  • Verastem (VSTM having closed up +$0.70 and an aftermarket indication of +$0.05 or +1.29%),
  • bluebird bio (BLUE having closed up +$2.82 and an aftermarket indication of -$0.05 or -0.09%),
  • Sage Therapeutics (SAGE having closed up +$3.34 and an aftermarket indication of -$0.04 or -0.11% with 3-sessions of upside),
  • Ionis Pharmaceuticals (IONS closed up +$0.47 with an aftermarket indication of +$0.06 or +0.11%),
  • Regenxbio (RGNX closed up +$1.55 with an aftermarket of +$0.23 or +0.63%),
  • uniQure NV (QURE closed up +$1.55 with an aftermarket indication of +$0.43 or +0.74%),
  • Athersys (ATHX closed up +$0.14 and had an aftermarket indication +$0.04 or +1.81%) – closure of $57.6 M offering,
  • Editas Medicine (EDIT closed up+$0.82 and had an aftermarket indication of +$0.21 or +0.85%),

BUY:

  • BioLife Solutions (BLFS closed down -$0.44 and has an aftermarket indication of +0.01 or +0.10%),
  • Sangamo Therapeutics (SGMO closed up +$0.45 and has an aftermarket indication of +$0.12 or +1.52%) and news;
  • Vericel (VCEL closed up +$0.06 and had an aftermarket indication of +$0.29 or +2.27%),

 

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.