July 7, 2020 8:10am

Pre-open indications: 2 BUY, 1 SELL on toxic review and 2 SELLs into Strength   

News: Cellectis (Euronext Growth: ALCLS - Nasdaq: CLLS) - the MELANI-01 trial has been placed on clinical hold by the U.S. FDA.

What I provide is an intelligence daily. Where are the canaries in the sector coal mine, am I the only one? 

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!

 

Dow futures are DOWN -0.74% (-193 points), S&P futures are DOWN -0.61% (-20 points) and NASDAQ futures are DOWN -0.30% (-32 points)

 

Stock futures fell on Tuesday following Monday’s strong rally, share pricing is stretched;

European markets repeated concerns over the threat to economic recovery caused by new coronavirus cases in the U.S. and weak German data as the pan-European Stoxx 600 fell 1.1% by late morning;

Asia Pacific markets declined overnight, where markets in South Korea and Japan retreated, while mainland Chinese shares continued with Monday’s rally.

 

Data Docket: The Labor Department will release the May figure for job openings at 10:00 a.m. ET. Economists expect the total vacancies to drop to 4.5 million in May from 5.05 million in April, which was the lowest total since December 2014.

  • The government’s Job Openings and Labor Turnover Survey is a month behind the more closely followed nonfarm payrolls report, which showed a surge of 4.8 million jobs in June and a 2.7 million jump in May.

 

Henry’omics:

There is not a solitary factor driving markets: other than impending volatility.

 

Monday night’s post title: “trade what you see, the highs; there are serious headwinds ahead”

  • The NASDAQ closed UP +210.11 points (+2.06%);
  • The IBB closed up +0.65% and XBI also closed up +0.03%
  • Sector volume was LOW with 4 of the 19-upside having higher than the 3-month average volume and 3 out of the 15-downside having higher than the 3-month average volume;
  • Although, the CBOE Volatility Index (VVIX: INDEX) tracked up +0.26 points or +0.94% at 27.94;
  • Monday’s percentage (%) of the 19-upside were +0.13% (FIXX) to +9.14% (MESO) while the 15-downside ranged from -0.02% (IONS) to -8.09% (AGTC); 

Q3:

Monday closed positive with 19 advancers, 15 decliners and 1 flat

Friday was a market holiday;

Thursday closed positive with 18 advancers, 14 decliners and 3 flats

Wednesday (7/1) closed positive with 24 advancers, 7 decliners and 4 flats

 

 

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

Maintaining Sell:

Biostage (BSTG) – serious questions of transparency, ethics, lack of experienced management talent and loss of executive team

 

SELL:

Cellectis SA (CLLS) closed up +$0.40 to $19.05 and has a negative -$2.55 or -13.39% after market indication after news of a clinical HOLD by the FDA. This clinical hold which impacts one of the three Cellectis product candidates currently in clinical studies, was initiated following the submission of a safety report regarding one patient enrolled in the MELANI-01 study at dose level two (DL2), with relapsed and refractory multiple myeloma. This patient, who had been treated unsuccessfully, prior to enrollment with numerous lines of prior therapy, including autologous CAR T-cells, experienced a fatal treatment-emergent adverse event of cardiac arrest.

CRISPR Therapeutics (CRSP) closed up +$4.41 or +5.53% to $84.11 after last Thursday’s +$1.20, Wednesday’s +$5.01, Tuesday’s -$1.56 and the previous Monday’s +$1.01 and has a negative -$1.11 or -1.32% aftermarket indication;

 

BUY:

Regenxbio (RGNX) closed down -$1.89 or -4.96% to $36.21 and has a positive +$0.54 or +1.48% aftermarket indication;

bluebird bio (BLUE) closed down -$1.42 or -2.39% to $58.08 and has a positive +$0.12 or +0.21% aftermarket indication. BLUE started June at $64.38, saw a high (6/5) at $70.98 and July at $61.02;

 

 

The BOTTOM LINE: I love indications, it’s part of the warning analysis work from my early working life. One indicator, the XBI only rose +0.03% yesterday, volume been low while inclines seem to be peaking. In July so far, four (4) sessions were 3 positive closes and 1 holiday. the short week ending June (a Monday and Tuesday), there was 1 positive and I negative closes. While the IBB in the last four (4) sessions aggregated +2.48% and the XBI +2.21%.

 I have the itch caused by the possibility of further declines …

The future is uncertain as the economy slowly opens, slows, reopens and slows again – be ready for anything!

If one can “time” the indications – do it; we are in a period of restricted options as Q2 results are coming and I don’t think they’re going to be good!

Build cash positions, most of us have been stuck spending less; yet, this crisis caught many of us at a time of tied-up financial reserves.

 

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.