July 17, 2020 7:56am

Or the worse side of an unequal mix of winners and losers

Pre-open indications: 1 BUY and 6 SELLs

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Dow futures are UP +0.23% (+60 points), S&P futures are UP +0.34% (+11 points) and NASDAQ futures are UP +0.81% (+85 points)

 

Stock futures were fluctuating on Friday morning following a volatile session that snapped a four-day winning streak for one of the major averages;

European stocks were mixed as the pan-European Stoxx 600 hovered just above the flatline by noon;

  • EU leaders will meet in Brussels on Friday looking to hash out a deal on the proposed 750 billion euro ($853.8 billion), which could face opposition from the “frugal four” member states of Austria, Denmark, Sweden and the Netherlands. The bill may also be subject to a veto from Hungary, which has opposed linking the distribution of funds with the upholding of the EU’s democratic values.

Asia Pacific stocks were higher following Thursday’s drop that saw shares in China plunging more than 4% as the MSCI Asia ex-Japan index advanced 0.7%.

 

Data docket: June data on U.S. housing starts and building permits is scheduled for 8:30 a.m. ET. Starts are forecast to a 1.2 million seasonally adjusted annual rate versus a 974,000 pace in May. Permits are expected to come in at an annualized pace of 1.3 million versus 1.22 million in May. A July consumer sentiment index reading is due at 10 a.m. ET.

 

Henry’omics:

3.5 million coronavirus cases have been confirmed in the U.S. while Sino-U.S. tensions have also weighed on sentiment…

  • After Reuters reported Thursday, citing a source, "that U.S. President Donald Trump’s administration is mulling a stateside travel ban on all members of the ruling Chinese Communist Party (CCP) and their families";
  • California, Florida and Texas have had to roll back reopening measures to curb a recent spike in cases.

 

Thursday night’s post title - a recap: “RegMed Investors’ (RMi) closing bell: gravity ensues, a natural market force as new heights are reached.”

  • The NASDAQ closed DOWN -76.66 points (-0.73%);
  • The IBB closed down -0.82% and XBI also closed down -0.92%;
  • Sector volume was LOW with 3 of the 7-upside having higher than the 3-month average volume and 2 out of the 25-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.21 points or -0.76% at 27.55;
  • Thursday’s percentage (%) of the 7-upside were +0.81% (CLBS) to +7.66% (BSTG) while the 25-downside ranged from -0.13% (AXGN) to -6.04% (VYGR); 

Q3’s last five (5) sessions:

  • Thursday closed negative with 7 advancers, 25 decliners and 3 flats
  • Wednesday closed positive with 30 advancers, 4 decliners and 1 flat
  • Tuesday closed positive with 25 advancers, 8 decliners and 2 flats
  • Monday (7/13) closed negative with 4 advancers, 29 decliners and 2 flats
  • Last Friday closed negative with 9 advancers, 22 decliners and 4 flats

 

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

Maintaining Sell:

Biostage (BSTG) closed up +$0.21 after Wednesday’s +$0.01, Tuesday’s -$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 (little is left). After an IND approval, WHY hasn’t a clinical trial begun? – BROKE;

SELL:

bluebird bio (BLUE) closed up +$0.72 to $66.63 after Wednesday’s +$3.08, Tuesday’s +$2.12 and Monday’s -$3.28 and has a negative -$0.03 or -0.05% aftermarket indication

Editas Medicine (EDIT) closed down -$0.41 to $32.21 after Wednesday’s +$1.00 and has a negative -$0.19 or -0.58% aftermarket indication;

CRISPR Therapeutics (CRSP) closed down -$2.00 to $91.32 after Wednesday’s +$2.41, Tuesday’s +$4.68 and Monday’s -$3.24 with a 52-week change of +87.69. time to lighten the load and take a few dollars off the table;

Pluristem (PSTI) closed up +$0.30 to $9.15 after Wednesday’s+$0.45 and has a negative -$0.65 or -7.10% aftermarket indication on news of a “shelf” filing;

BioLife Solutions (BLFS) closed down -$0.43 to $19.51 after Wednesday’s +$0.73 and has a negative -$0.51 or -2.61% aftermarket indication;

BUY:

Regenxbio (RGNX) closed down -$1.46 to $38.80 after Wednesday’s +$1.61, Tuesday’s +$2.33 and has a positive +$1.64 or +4.23% aftermarket indication;

 

The BOTTOM LINE: I am still about trimming RISK; the short-term road is so perilous.

The continued rise in COVID-19 cases in the U.S. has been partly offset by market optimism hoping that additional fiscal stimulus from Congress will prop underlining weakness.

Optimism has to have many legs and I am NOT sure it will underwrite a reopening of economic realism.

Q2 sector results should start appearing in the first week of August …

 

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.