April 29, 2020 8:05am

Volatility caused by electronic trading keeps visibility at a minimum

Pre-open indications: 6 BUYs and 2 SELLs

Q1 earnings: CRISPER Therapeutics (CRSP) with a Q1 net loss was $69.7 million or -$1.15 per share compared to net loss of $48.4 million or -$0.93 per share for Q1/19 and is first out of gate of my 35 covered companies

What I provide is an “intelligence daily” to inform the RegMed/cell and gene therapy sector and its investors utilizing my focus on indication analysis. An indication can be a development of almost any kind. Specifically, it may be a confirmed fact, a possible fact, or an absence of “something”, a fragment of information or even an observation. The sole requirement is that it provides insight to plan vision into a likely course of action. Check the BOTTOM LINE <read more>


Dow future are UP +0.62% (+148 points), S&P futures are UP +0.77% (+22 points) and NASDAQ futures are UP +1.02% (+69 points)

 

U.S. stock futures point to a positive open as investors looked for guidance from the Fed on the future interest rates with a gradual reopening of the economy;

European markets were muted as investors reacted to a deluge of major earnings reports (Airbus, Deutsche Bank, Barclays, GSK, Standard Chartered and Volkswagen reporting), ahead of the latest monetary policy decision from the U.S. Fed as the pan-European Stoxx 600 fluctuated either side of the flatline;

Asia Pacific markets rose with mainland China mixed, South Korea’s Kospi gained and in Australia, the S&P/ASX 200 rose as shares of major banks such as Commonwealth Bank of Australia and Westpac advanced at least 4% each with the MSCI Asia ex-Japan index rising 0.99%.

 

Data docket: U.S. gross domestic product at 8:30 a.m. ET. Economists forecast the U.S. economy shrank by 3.5% in the first quarter as the pandemic disrupted economic activities. U.S. GDP grew by 2.1% in the fourth quarter. The Fed’s monetary policy decision at 2 p.m. ET Wednesday. Investors will look to the central bank’s statement and chairman Jerome Powell’s virtual press conference for clues about how long interest rates will stay near zero as the economy seeks to emerge from coronavirus crisis.

 

Henry’omics:

All eyes will be on the Fed’s monetary policy decision at 2 p.m. ET Wednesday. Investors will look to the central bank’s statement and chairman Jerome Powell’s virtual press conference for clues about how long interest rates will stay near zero as the economy seeks to emerge from coronavirus crisis. <CNBC>

Reality is what it is; instead of trying to guess at what sector will do, I continue to do what I always do, and that means watching what the sector’s patterns and markets are whispering to me.

Earnings season has official started as the first announcement out of the gate was CRISPR Therapeutics AG (CRSP) which came-out with a quarterly loss of $1.15 per share versus the Zacks Consensus Estimate of a loss of $1.09. This compares to loss of $0.93 per share a year ago. These figures were adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.50%. CRSP shares have lost about 9.7% since the beginning of the year versus the S&P 500's decline of -10.9%. Cash position was $889.7 million with a Q1 net loss was $69.7 million or -$1.15 per share compared to net loss of $48.4 million or -$0.93 per share for Q1/19.

Maybe a session … WITHOUT negativity.

 

Tuesday night’s title: “yesterday’s upside strength did not sustain the sector’s share pricing today. It’s about selling into strengths as the sector peaks and squeaks as sustainability is not a trend or friend.”

  • The NASDAQ closed DOWN -122.43 points (-1.40%);
  • The IBB closed down -2.13% and XBI also closed down -3.09%;
  • The CBOE Volatility Index (VVIX: INDEX) was up +0.84%;
  • The advance/Decline (A/D) line closed negative at 7/28;
  • The % of the 7-upside were +0.61% (CLLS) to +4.61% (AXGN) while the 28-downside ranged from -0.49% (BCLI) to -13.1% (MESO); 
  • 0 out of the 7-upside had higher than the 3-month average volume;
  • 6 out of the 28-downside had higher than the 3-month average volume;

Q2:

  • April registered 9 negative, 10 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:

BUY:

  • bluebird bio (BLUE) closed down -$4.19 after Monday’s up +$2.94 after 2 positive closes and has a positive +$2.10 or +3.84% aftermarket indication;
  • Alnylam Pharmaceuticals (ALNY) closed down -$5.20 and has a positive +$0.78 or +0.57% aftermarket indications;
  • Fate Therapeutics (FATE) closed down -$2.23 and had a positive +$0.57 or +2.05% aftermarket indication;
  • Ionis Pharmaceuticals (IONS) closed down -$1.18 and had a positive +$0.73 or +1.28% aftermarket indication;
  • Mesoblast (MESO) closed down -$1.52 after Monday’s $3.86 with a positive +$0.12 or +1.19% aftermarket indication;
  • Sage Therapeutics (SAGE) closed down -$0.65 and had a positive +$0.34 or +0.85% aftermarket indication;

SELL:

  • CRISPR Therapeutics (CRSP) closed down -$2.48 after Monday’s up +$0.39 and had a negative -$1.52 or -2.89% aftermarket indication after earnings;
  • ReNeuron (RENE.L) closed down -$5.00 after 4 positive session closes and has a US pre-market pricing of -$2.50;

 

The BOTTOM LINE: When will equity demand recuperate to pre-virus levels?

NO solid answer as …

It’s similar to a retelling of “Romeo and Juliet” but, in our sector, the question is; who are the sellers or when should buyers purchase downtrodden equities. “Deny thy pricing and refuse thy orders or if thou wilt not be but sworn”

And look at what they did; MY focus of utilizing the indications “system” demonstrates real warning or possible buying signals.

 

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.