May 22, 2020 8:02am
I’ll stick to cocktails of indication intelligence and humint analysis based on sector perceptions
Pre-open indications: 2 BUYs and 7 SELLs
Long weekend approaching and I am truly thankful as my brain is mush after treading this volatility!
What I provide is an “intelligence daily” to “never leave an investor uninformed”! Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors who make money and for those who read and don’t weep! Check the BOTTOM LINE <read more>
Dow future are DOWN -0,34% (-82 points), S&P futures are DOWN -0.28% (-8 points) and NASDAQ futures are DOWN -0.35% (-33 points)
U.S. stock futures fell after yesterday’s decline, a miserable weekly jobless claim data and rising tensions with China, the major averages remained on pace for solid weekly gains;
European stocks traded lower as ties between the U.S. and China come under further strain, potentially threatening the “Phase One” trade deal signed earlier this year helping the pan-European Stoxx 600 to drop -1.6% in early trade;
Asia Pacific markets fell as rising tensions between the U.S. and China weighed on investor sentiment.
Hong Kong’s Hang Seng index plunged; China is poised to impose a new national security law on Hong Kong while also announcing it will not set a GDP target for 2020. Japan, Australia and South Korea closed lower as the MSCI Asia ex-Japan index dropped 2.68%.
I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”
Another week and all we can say is … END it!
Momentum is fragmented, volatility exceeds volume and we shouldn’t base our buying positions in this climate on hope!”
Enjoy the weekend, start early and be safe!
Thursday night’s newsletter’s title:” the road to a peak was relatively easy, falling down from the upside was hurtful yet, the RegMed/cell and gene therapy sector blossomed.”
- The NASDAQ closed DOWN -80.89 points (-0.97%);
- Thursday closed positive at 29/13 and 3 flats;
- Volume was still LOW with 5 out of the 29-upside having higher than the 3-month average volume and 0 out of the 13-downside having higher than the 3-month average volume.
The percentage (%) of the 29-upside were +0.05% (SAGE) to +8.32% (FATE) while the 13-downside ranged from -0.02% (RARE) to -5.11% (VCEL);
- The IBB closed down -1.08% after Wednesday’s +2.06%, Tuesday’s down -1.92% and Monday’s up of +1.16%;
- The XBI also closed down -0.83% after Wednesday’s +2.89%, Tuesday’s down -2.85% and Monday’s up of +2.91%;
- May registered 6 negative, 9 positive closes – so far
- April registered 10 negative, 11 positive closes and 1 holiday.
- 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 ...
Maintaining Selling into any strength:
- Athersys (ATHX) closed down -$0.06 after Wednesday’s +$0.20, Tuesday’s-$0.085 and Monday’s +$0.035. SELL into trials which will take time plus a lingering negative includes taking PPP funds from the government while simultaneously raising $57.6 M.
SELL after/to strength:
- Brainstorm Cell Therapeutics (BCLI) jumped +$0.30 on what and has a negative -$0.07 or -1.14% aftermarket indication;
- Cellectis SA (CLLS) closed up +$1.33 after Wednesday’s +$0.36 to $19.55 and has a negative -$0.33 or -1.58% aftermarket indication. I’d ride the upside and the SELL as 5/13 saw $13.70 and started the month of May at $12.06. Another early call;
- Adverum Biotechnologies (ADVM) closed up +$0.46 after Wednesday’s +$1.00 or +5.29% to $19.92 and has NO aftermarket indication however, the month of May started at $12.00;
- CRISPR Therapeutics (CRSP) closed up again +$0.99 to $67.78after Wednesday’s +$3.23 to $66.79 after Tuesday’s down -$0.42 and has a positive +$0.67 or +0.99% aftermarket indication however, a 52-week change of +81.45, a chart that looks very “peaky” as the month of May opened at $48.46. a target of trading;
- Intellia Therapeutics (NTLA) closed up again +$0.77 after Wednesday’s +$0.36, Tuesday’s +$0.74 to $19.44 and Monday’s +$1.31 after hitting a 52-week high which threatens me as to ownership. But, NTLA has a +$0.23 or +1.12% aftermarket indication with a 52-week high of +37.31%;
- Regenxbio (RGNX) closed up again +$0.29 to $42.23 after Wednesday’s +$3.65 to $41.94 and has a negative -$0.47 or -1.12% aftermarket indication)
- Applied Genetic Technologies (AGTC) closed up +$0.13 after Wednesday’s +$0.15 and Tuesday’s +$0.02 news and has a positive +$0.06 or +1.34% aftermarket indication;
- Pluristem (PSTI) closed down -$0.26 after Wednesday’s +$0.01, Tuesday’s -$0.51 and Monday’s -$0.57 and has a positive +$0.03 or +0.35% aftermarket indication. Traders are “scoring” on taking down PSTI however recent news (which was sold into) highlights an … 87.5% survival rate of patients on invasive mechanical ventilation injected with PLX cells, 75% of patients no longer in need of any mechanical ventilation, 62.5% of the patients discharged alive from the hospital after a 28-day study in PSTI’s recently announced FDA P2 study. A compassionate use program should NOT be underestimated. I’m also a sucker for the oversold, the problem with PSTI is they have to overcome past issues and define the veracity of their messaging;
The BOTTOM LINE: My trigger finger gets itchy with sector sessions that scratch highs. It’s the algorithms and electronic trading that I fear – NO human investing input!
I am an adherent of … “The future remains uncertain, and thus, we are not confident in saying a second wave cannot happen -- but the good news, there has yet to be a second wave in re-opened economies,” said Tom Lee, founder and head of research at Fundstrat Global Advisors, in a note. “We remain in the half-full camp and believe stocks offer pretty good risk/reward, even here.” <CNBC>
Another quote from others, “Artificially low volatility has driven a wide range of investment strategies which generate small returns under stable conditions but are vulnerable to large losses under stressful conditions” <MarketWatch>
NEVER a follower but, I ALWAYs listen and consider the input of others - some even say it better!
Remember, reopening is about revamping the broken supply chain, there will be an acceleration of business openings but, people are still scared of going out-and-about.
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.