August 26, 2020 7:58am

Follow the path of least resistance … stay up

Pre-open indications: 0 BUYs and 1 SELLs

The Biostage (BSTG) Chronicles <Read more>

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Dow futures are DOWN -0.15% (-41 points), S&P futures are UP +0.07% (+2 points) and NASDAQ futures are UP +0.46% (+54 points)

 

U.S. stock futures were lower projecting a mixed open on Wednesday after the S&P 500 closed at a new record high;

European stocks traded slightly higher, amid optimism about U.S.-China trade and ahead of a key speech by the U.S. Fed chairman with the pan-European Stoxx 600 index up around 0.4%;

Asia Pacific stocks traded lower as China led losses yet, the MSCI Asia ex-Japan index was fractionally higher.

 

Henry’omics:

I believe yesterday’s gains in the S&P 500 (+0.36%) notching its 17th record close of 2020 and the Nasdaq closing (+0.76%) took some bluster out of today’s trading session.

Also, on Thursday, market attention will turn to the Jackson Hole conference held every year by the Kansas City Federal Reserve; the Fed will hold its annual symposium on monetary policy and provide some clues on further stimulus and where the economy is headed out of the event; what’s important will be Chairman Powell’s views on inflation and its impact on the dollar.

 

Tuesday night’s post title – “from one downside extreme to the upside antithesis; comparing Monday’s losses to today’s gains, it’s all about the comeback”

  • The NASDAQ closed UP +86.75 points (+0.76%);
  • The IBB closed up +1.53% and XBI also closed up +1.20%;
  • Sector volume was LOW with 1 of the 30-upside having higher than the 3-month average volume and the 2 of 3-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.34 points or -1.52% at 22.03;
  • Tuesday’s percentage (%) of the 30-upside were +0.08% (BLUE) to +5.91% (ATHX) while the 3-downside ranges from -0.64% (BLCM) to -5.56% (MESO); 

Q3 so far:

  • August, 7 positive closes and 10 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 flat at $1.40 (1465 shares traded) after Monday’s -$0.22 to $1.40 after Friday’s +$0.29 to $1.62, Thursday’s +$0.16, Wednesday’s -$0.18 (was down to $1.00, Wednesday noon) after last Tuesday’s -$0.81.  Keep writing those checks to “PUMP” the share price – it’s costing you more and the less goes to the operations of the company.

There still exist the millions of private placement unregistered shares (priced at $3.20, $3.60, $3.70 and now $4.00) existing FAR beyond the registered outstanding and float shares. SO again, why are companies with ‘going concerns”, measured by continual losses, development failures, a filed IND with NO clinical trial follow-up and continuous inflated financings – still listed?

Investors want to KNOW …Transparency is very important because investors NEED to understand what's going on: WHAT is the plan “going forward” and HOW many restricted and unregistered shares exist beyond the outstanding?

 

 

The BOTTOM LINE: I’m hanging on to yesterday’s prognostications – we were OVERSOLD; so, I will pass on today’s input.

Hoping for some sustainability …

Actually, I need a break after my hyperactivity work ethic with writing and interior house upkeep. Being stuck-in has finally gotten to me, cleaning bathrooms seem to be my forte – no toothbrushes this time, the military taught me a few lessons!

 

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.