July 14, 2020 8:21am

Riding the merry-go-round, risk keeps the music playing and the horses revolving, no wonder they’re called “jumpers”

Pre-open indications: 5 BUYs and 3 SELLs

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 UP +0.41% (+107 points), S&P futures are UP +0.23% (+7 points) and NASDAQ futures are UP +0.00% (+1 points)

 

U.S. stock futures were higher early Tuesday, pointing to a positive open awaiting bank earnings release;

European stocks pulled back as a spike in coronavirus cases started to weigh on global market sentiment as the pan-European Stoxx 600 dropped 1.5% in early trade;

Asia Pacific stocks fell including mainland China, Japan, Australia and South Korea as China’s trade data for June came in above expectations.

 

Data docket: A key indicator of inflation trends, the consumer price index will be released by the Labor Department at 8:30 a.m. ET. Economists estimate U.S. consumer prices rose 0.5% in June.

 

Henry’omics:

U.S. bank’s earnings are also a key focus for investors …

On Monday, the Dow gave up a 500-point gain to end the day up 10 points. The S&P 500 ended down -29.82, the first time since early June that the S&P 500 traded positive year to date. The Nasdaq dipped 226.21 points, briefly traded above 11,000 for the first time before falling.

My optimism bubble is leaking …

 

Monday night’s post title - a recap: “ba-da bing, bada boom, erasing the upside. Another I told you so; the sector got afternoon hammered (after ignoring the virus issues drinking the Kool-Aid of misplaced optimism) as investors chased pricing with volatility jumped +17.96%.”

  • The NASDAQ closed DOWN -226.60 points (-2.13%);
  • The IBB closed down -1.34% and XBI also closed down -2.58%
  • Sector volume was LOW with 1 of the 4-upside having higher than the 3-month average volume and 10 out of the 29-downside having higher than the 3-month average volume;
  • Even as the CBOE Volatility Index (VVIX: INDEX) was up +4.90 points or +17.96% at 32.19;
  • Monday’s percentage (%) of the 4-upside were +0.60% (AXGN) to +6.40% (CLBS) while the 29-downside ranged from -0.10% (BLFS) to -9.91% (NTLA);
  • Interesting, Advance/Decline line stats … - Monday opened positive at 21/11 and 3 flats, stayed positive at the mid-day at 22/9 and 4 flats, closing negative at 4/29 and 2 flats;
  • Swing low the chariot coming to take the sector down …

 

Q3: patterns or trends (?)

Monday (7/13) closed negative with 4 advancers, 29 decliners and 2 flats

Friday closed negative with 9 advancers, 22 decliners and 4 flats

Thursday closed negative with 10 advancers, 24 decliners and 1 flat

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

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

Monday (7/6) 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 -$0.02 with 3,610 shares traded after Friday’s +$0.02 to $2.52 with 25 shares traded on Friday after Thursday’s +$0.02, Wednesday’s -$0.01 and last Tuesday’s -$0.09; serious questions of transparency, ethics, lack of experienced management talent and loss of executive team. BSTG trades ONLY with day traders, NO institutions or major firms. The real issues are the amounts of outstanding private placement shares sold to Chinese nationals with warrant coverage;

SELL:

Applied Genetic Technologies (AGTC) closed down -$0.21 or -3.60% to $5.63 and has a negative -$0.05 or -0.80% aftermarket indication;

Brainstorm Cell Therapeutics (BCLI) closed down -$0.43 or -3.255 to $12.82 and has a negative -$0.11 or -0.84% aftermarket indication;

BUY:

Athersys (ATHX) closed down -$0.155 or -5.52% to $2.65 and has a positive +$0.08 or +2.82% aftermarket indication;

bluebird bio (BLUE) closed down -$3.25 or -5.135 to $60.71 and has a positive +$0.04 or +0.07% aftermarket indication;

CRISPR Therapeutics (CRSP) closed down -$3.20 or -3.62% to $86.23 and has a positive +$0.77 or +0.89% aftermarket indication;

Global Blood Therapeutics (GBT) closed down -$0.54 or -0.76% to $70.58 and has a positive +$3.21 or +4.55% aftermarket indication;

uniQure NV (QURE) closed down -$2.34 or -5.045 to $44.07 and has a positive +$2.03 or +4.61% aftermarket indication;

 

The BOTTOM LINE: Repeating a few memes, ““Momentum is fragmented, volatility exceeds volume and we shouldn’t base our buying positions in this climate on hope!”

“Wherefore art thou?” It’s occasionally used in retellings of “Romeo and Juliet” but, in our sector, the question is; who are the seller or when should buyers purchase downtrodden equities. “Deny thy pricing and refuse thy orders or if thou wilt not be but sworn”

I make a commitment to provide need-to-know “facts in evidence” as equity’s volatility is one tactical signal for stocks.  I say today what others won't, so you can do what others can't whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

Just remember, the sector is what it is, until it isn’t and even then, it doesn’t seem to be … when you point one finger, there are three fingers pointing back at you!

Welcome to my world of defining the “grey’ in our universe!

 

 

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.