July 9, 2020 8:38am

Pre-open indications: 1 SELL on toxic review and 7 SELLs into Strength   

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Dow futures are DOWN -0.20% (-53 points), S&P futures are UP +0.02% (1 points) and NASDAQ futures are UP +0.48% (+51 points)

 

Futures were mixed early Thursday;

European markets edged higher as investor focus swings to the potential economic recovery and earnings season as the pan-European Stoxx 600 climbed 0.3% in early trade;

Asia Pacific markets were higher as Chinese inflation data for June was released with the MSCI Asia ex-Japan index gaining +0.59%.

 

Data Docket: The Labor Department said 1.314 million Americans filed for unemployment benefits last week. Economists expected a print of 1.39 million. Continuing claims fell by 698,000 to 18.06 million.

 

 

Henry’omics:

The coronavirus pandemic also likely continued weighing on investor sentiment

Wednesday, the Nasdaq rose 1.44%, the S&P 500 notched a more modest 0.78% gain and the Dow up 0.68%.

Since last week’s close, the S&P 500 was up +1.27%, the Dow +0.93% and the Nasdaq Composite +2.79%. The Nasdaq is also up 29.68% over the last three months.

Time to seek refuge …

 

Wednesday night’s post title - a recap: “share pricing appreciation; however, there are levels to risk tolerance.”

  • The NASDAQ closed UP +148.61 points (+1.44%)
  • The IBB closed up +0.54% and XBI also closed up +1.50%
  • Sector volume was LOW with 7 of the 28-upside having higher than the 3-month average volume and 1 out of the 5-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 28-upside were +0.26% (ALNY) to +8.15% (CLLS) while the 5-downside ranged from -0.40% (BSTG) to -6.09% (FIXX); 

Q3:

Wednesday closed positive with 28 advancers, 5 decliners and 2 flats

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) – closed down -$0.01 after Tuesday’s -$0.09; serious questions of transparency, ethics, lack of experienced management talent and loss of executive team;

SELL into Strength:

Adverum Biotechnologies (ADVM) closed up +$1.16 or +5.66% to $21.64 and has a negative -$0.04 or -0.18% aftermarket indication;

BioLife Solutions (BLFS) closed up +$0.41 or +2.3% to $17.99 after an offering priced at $14.50 for new 5.95 million shares being added to the float – pull in the oars;

CRISPR Therapeutics (CRSP) closed up again +$2.76 or +3.02% to $94.17 after Tuesday’s +$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, it does have a positive +$0.68 or +0.725 aftermarket indication. Again, time to let some air out of the tires;

Editas medicine (EDIT) closed up +$2.46 or +7.45% to $34.63 and has a negative -$0.13 or -0.38% aftermarket indication;

Global Blood Therapeutics (GBT) closed up +$1.45 or +2.17% to $68.35 and has a negative -$0.78 or -2.02% aftermarket indication;

Pluristem (PSTI) closed up +$0.16 or +1.84% to $8.90 and has a negative -$0.18 or -2.02% aftermarket indication;

BUY to SELL:

Regenxbio (RGNX) closed up +$1.20 or +3.18% to $38.91 after Tuesday’s +$1.50 to $37.71 after Monday’s -$1.89 and Thursday’s -$0.65. and has a negative -0.35 or -0.89% aftermarket indication;

 

 

The BOTTOM LINE: Can’t change the feeling or the words “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!

A view from others of renown, “A. Gary Shilling, longtime economist and president of A. Gary Shilling & Co., again delivering a gloomy take on what’s next in a recent CNBC interview.

  • “Stocks are [behaving] very much like that rebound in 1929 where there is absolute conviction that the virus will be under control and that massive monetary and fiscal stimuli will reinvigorate the economy,” he said, adding that the market could drop as much as 40% over the next year.
  • “This pandemic is likely to be the most disruptive financial and social event since World War II with equally long-lasting consequences,” Shilling wrote, citing the stark unemployment numbers at the time. “Many will no doubt restrain spending in future years to rebuild savings, especially since the crisis caught them at a time of high debts and short 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.