August 7, 2020 8:45am

What I provide is called a ‘warning” which can be a deduction, a perception that is a product of reasoning yet, a hypothesis whose validity can only be confirmed once it has happened

Pre-open indications: 6 BUYs and 4 SELLs

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Dow futures are DOWN -0.38% (-105 points), S&P futures are DOWN -0.31% (-11 points) and NASDAQ futures are DOWN -0.31% (-35 points)

 

Friday’s futures fell on Friday after an executive order from President Trump raised tensions with China, still unresolved virus stimulus talks in Washington and the jobs report;

European stocks inched lower ahead of a key U.S. federal jobs report and amid rising tensions between Washington and Beijing with the pan-European Stoxx 600 flatlining in early trade;

Asia Pacific stocks were lower as tensions between Beijing and Washington weighed on investor sentiment as the MSCI Asia ex-Japan index fell -1.4%.

 

Data Docket: monthly jobs report due with U.S. jobs rise by 1.763 million in July, vs 1.48 million expected

 

Henry’omics:

President Trump issued executive orders to address “the threat posed” by Chinese apps TikTok and WeChat.

  • As part of the order, any transaction with ByteDance and Tencent, the parent companies of TikTok and WeChat will be barred in 45 days.

It comes as tensions between Washington and Beijing continue to escalate over several issues including the origins of the coronavirus and democracy in Hong Kong.

  • The executive order took aim directly at WeChat, which has more than 1 billion users worldwide, and whose “data collection threatens to allow the Chinese Communist Party access to Americans’ personal and proprietary information,” the order said.
  • The move to ban WeChat and TikTok roiled Asian markets and hit some of the highest profile technology stocks in the region.

 

Thursday night’s post title – “The sector is being driven down the path from the lack of support. We’re going through quarterly financial results <notice I didn’t say – “earnings” season, my fear is that the Q2 LPS <loss-per-share> aren't going to look much better than the Q1 numbers with a serious future question of Q3 numbers”

  • The NASDAQ closed UP +109.67 points (+1%);
  • The IBB closed down -0.38% and XBI also closed down -0.51%;
  • Sector volume was LOW with 6 of the 11-upside having higher than the 3-month average volume and the 4 of 23-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.34 points or -1.48% at 22.65;
  • Thursday’s percentage (%) of the 11-upside were +0.02% (QURE) to +14.68% (BSTG) while the 23-downside ranged -0.38% (ATHX) to -10.38% (CLBS); 

Last five (5) sessions:

  • Thursday closed negative with 11 advancers, 23 decline and 1 flat
  • Wednesday closed positive with 19 advancers, 15 decline and 1 flat
  • Tuesday closed negative with 13 advancers, 20 decline and 2 flats
  • Monday (8/3) closed positive with 31 advancers, 1 decline and 3 flats
  • Last Friday (7/31) closed negative with 7 advancers, 27 decliners and 1 flat

Q3 so far:

  • August, 2 positive closes and 2 negative closes
  • July -11 positive and 11 negative closes with 1 holiday

 

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

Maintaining Sell:

Biostage (BSTG) closed up +$0.32 to $2.50 after Wednesday’s +$0.06, Tuesday’s -$0.01 and last Monday’s -$0.37 as “someone is deploying” the buying of shares in down sessions. Remember, there are millions of private placement millions unregistered shares (priced at $3.20, $3.60 and $3.70) existing FAR beyond the outstanding shares and the float.

President Trump issued executive orders Thursday night banning “transactions” with the Chinese owners of the …WeChat app … starting Sept. 20. How will BSTG communicate to current and potentially new investors to fund the company and communicate with its executive management and board of directors.

Mrs. bin Zhao, the major stock holder and head of DST Capital, BSTG’s funder: if you had stuck to the original turn-around plan, BSTG would NOT be in this position!

  • Facts are irrefutable and the First amendment of the U.S. Constitution protects American’s free speech.

Editas Medicine (EDIT) closed up +$4.35 to $36.84 after Wednesday’s +$0.61, Tuesday’s +$0.31 and Monday’s +$2.21 with a 52-week change of +30.12% and has a negative -$2.03 or -5.51% aftermarket indication;

Global Blood Therapeutics (GBT) closed down -$3.86 to $64.04 after Wednesday’s -$0.86 and has a negative -$0.67 or -1.05% aftermarket indication. Financial results have been disclosed;

 

SELL from BUY:

Intellia therapeutics (NTLA) closed up +$0.34 to $19.99 after Wednesday’s +$0.06 and has a negative -$0.14 or -0.70% pre-market indication. Financial results have been disclosed;

 

BUY from SELL:

Mesoblast (MESO) closed down -$0.23 to $15.50 after Wednesday’s +$0.28. August 3 opened at $14.37 and July at $11.58 and has a positive +$1.00 or +6.45% aftermarket indication;

 

BUY, oversold:

BioLife Solutions (BLFS) closed down -$0.28 to $20.67 after Wednesday’s $20.95, Tuesday’s $20.99 and Monday’s $21.01 and the previous Friday’s $19.33 with a positive +$0.18 or +0.87% aftermarket indication. Financial results have been disclosed;

CRISPR Therapeutics (CRSP) closed down -$1.57 to $92.94 and has a positive +$1.39 or +1.50% aftermarket indication. Financial results have been disclosed;

Brainstorm Cell Therapy (BCLI) closed down -$0.96 to $12.15 after Wednesday’s $13.11, Tuesday’s $13.39 and Monday’s $14.08 and has a positive +$0.38 or +3.13% aftermarket indication but, a 232.74% 52-week change;

uniQure NV (QURE) closed up +$0.01 to $41.84 and has a positive +$0.38 or +0.91% aftermarket indication. Financial results have been disclosed;

Sage Therapeutics (SAGE) closed down -$0.70 to $50.00 and has a positive +$0.29 or +$0.58 aftermarket indication;

 

The BOTTOM LINE: Investors seem to be happy living in a constructed reality, swallowing the blue pill is a metaphor, swaying the sector.

Framing the main takeaways … pricing, volume, volatility and LPS <loss-per-share> earnings and we are NOT done yet!

I usually don’t invest in an earnings’ laden week waiting for the pre and post reporting effects!

Remember my “hall of mirrors” analogy.

 

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.