June 17, 2020 8:09am

Reflects speculation that new virus outbreaks won’t lead to pull backs from the plodding reopening of business and local economies.

Pre-open indications: 2 BUYs

News: ReNeuron (RENE.L) has news of a submitted protocol amendment to the U.S. FDA to expand the ongoing P2a clinical study of its hRPC stem cell therapy candidate in retinitis pigmentosa (RP) to treat patients at a higher dose level. 

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Dow futures are UP +0.70% (+184 points), S&P futures are UP +0.58% (+18 points) and NASDAQ futures are UP +0.59% (+59 points)

 

U.S. stock futures suggested the market would continue to move higher;

European stocks gained as optimism stimulates economic recovery as the pan-European Stoxx 600 climbed by 0.8% in early trading;

Asia Pacific stocks were mostly higher as the International Monetary Fund said the global economy is set to see a more significant contraction than it previously forecast. Only exception was Japan as the MSCI Asia ex-Japan index was 0.34% higher;

  • In regional economic data, Japan’s exports plunged 28.3% year-on-year in May, according to provisional trade statistics released Wednesday by the country’s Ministry of Finance.

 

Data docket: Mortgage applications to purchase a home rose 4% last week from the previous week and were a remarkable 21% higher than a year ago, according to the Mortgage Bankers Association. It was the ninth consecutive week of gains and the highest volume in more than 11 years. The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.30% from 3.38%.

 

Henry’omics:

From the title, optimism is a term derived from the Latin optimum, meaning "best". Being optimistic, in the typical sense of the word, is defined as expecting the best possible outcome from any given situation.

The term is about the best of all possible worlds … and we are NOT in one!

Are we headed to a four (4) session streak that will possibly stimulate fatigue or algorithmic attack?

 

Tuesday’s night post’s title: “retail sales data offset rise in coronavirus infections; while valuations are in flux, some deflated, others stretched until investors are driven away by poor data, lured elsewhere or algorithmic hit jobs.”

  • The NASDAQ closed UP +169.84 points (+1.75%);
  • The IBB closed +1.83% and XBI also closed up +1.54%;
  • Tuesday opened negative and closed positive;
  • Sector volume continued LOW with 6 out of the 23-upside having higher than the 3-month average volume and 1 out of the 7-downside having higher than the 3-month average volume;
  • The percentage (%) of the 23-upside were +0.46% (AXGN) to +8.80% (RENE.L) while the 7-downside ranged from -0.20% (VCEL) to -5.31% (ATHX); 

Q2:

  • June registered 6 positive and 6 negative closes
  • May registered 9 negative, 11 positive closes and 1 holiday.
  • April registered 10 negative, 11 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:

  • CRISPR Therapeutics (CRSP) closed up +$2.56 and has a positive +$0.85 or +1.36% aftermarket indication;
  • ReNeuron (RENE.L) closed up +$11.00 and has a pre-market indication of +$6.92 or +5.09% on news of submitted a protocol amendment to the U.S. FDA to expand the ongoing P2a clinical study of its hRPC stem cell therapy candidate in retinitis pigmentosa (RP) to treat patients at a higher dose level.  This will enable the treatment of up to a further nine (9) patients in the P 2a extension segment of the study <beyond the ten (10) P2a patients already treated>.  RENE.L also announced at that time that it had submitted an application to the Medicines and Healthcare products Regulatory Agency (MHRA) to open the ongoing study to a highly experienced U.K. clinical site, the Oxford Eye Hospital.  These regulatory submissions followed recent positive long-term data.

 

The BOTTOM LINE: Sentiments is having a good run … sometimes it’s easier to explain using someone else’s words, “It’s hard to keep a ‘well supported’ stock market down,” Jim Paulsen, chief investment strategist at the Leuthold Group. “Against a backdrop of widespread caution after a swift 7% decline in the recent days, the stock market was simultaneously bombarded by major pillars of support.”

My question – for how long?

 

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.