July 8, 2020 8:29am

… If you’re not early, you’re late to escape any downside

Pre-open indications: 1 BUY, 1 SELL on toxic review and 3 SELLs into Strength   

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Dow futures are UP +0.13% (+34 points), S&P futures are UP +0.19% (+6 points) and NASDAQ futures are UP +0.41% (+43 points)

 

U.S. stock futures were fluctuating, following weakness in equities from the previous session;

European markets were lower as surging coronavirus cases cast doubt over economic recovery as the pan-European Stoxx 600 fell -0.6% by late morning;

Asia Pacific markets were mixed as Mainland Chinese stocks built on the solid run, they’ve had so far this week leading to gains with both the Shanghai composite and Shenzhen component rising almost 2%. Other major markets in the region saw losses on the day; however, the MSCI Asia ex-Japan index rose 0.49%.

 

Henry’omics:

Equities that are based on the re-opening of the economy dragged down markets following a resurgence in coronavirus cases in the U.S.;

 

Tuesday night’s post title - a recap: “what’s investment right or wrong, realizing profit is righteous”

  • The NASDAQ closed DOWN -89.76 points (-0.86%)
  • The IBB closed up +0.44% and XBI also closed up +1.88%
  • Sector volume was LOW with 7 of the 18-upside having higher than the 3-month average volume and 2 out of the 12-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +1.49 points or +5.33% at 29.43;
  • Tuesday’s percentage (%) of the 20-upside were +0.03% (GBT) to +10.93% (BLUE) while the 12-downside ranged from -0.33% (BLFS) to -15.83% (CLLS); 

Q3:

Tuesday closed positive with 18 advancers, 12 decliners and 5 flats

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 into Strength:

Alnylam Pharmaceuticals (ALNY) closed up +$7.57 to $ - an all-time high after Monday’s +$2.56 and Thursday’s +$1.10 – could be time to reap some “benefits”;

CRISPR Therapeutics (CRSP) closed up +$7.30 after Monday’s +$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 No aftermarket indication, however time to let some air out of the tires;

Ultragenyx Pharmaceuticals (RARE) closed up +$1.13 to $87.88 after Monday’s +$0.71 and Thursday’s +$1.39, overbought or fairly valued? A 52-week change of +51.16% - tempting to skim and trim;

 

BUY:

Regenxbio (RGNX) closed up +$1.50 to $37.71 after Monday’s -$1.89 and Thursday’s -$0.65. has a positive +$0.25 or +0.66% aftermarket indication;

 

 

The BOTTOM LINE: Some say or predict that July will be a solid month; there has been a fire under equities however, smoke does mean fire and prospects remain iffy.

The issue affecting markets is reopening the economy, another however, acceleration or deceleration employment will be the key to recovery.

The trend is NEVER your friend, the higher some equities are overbought – the quicker they will fall like Icarus into the sea, melting wings and all!

 

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.