September 16, 2020 8:08am
Are we underestimating indicators of re-opening businesses, unemployment and return to which level of normal?
Pre-open indications: 2 BUYs and 9 SELLs
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Dow futures are UP +0.47% (+131 points), S&P futures are UP +0.50% (+17 points) and NASDAQ futures are UP +0.27% (+31 points)
U.S. stock futures rose in early trading Wednesday as investors readied for anticipated comments re keeping interest rates low for longer from the Fed;
European stocks were mostly higher as investors await the outcome of a two-day meeting of the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) as the pan-European Stoxx 600 added 0.5% by late morning;
Asia-Pacific stocks were mixed as investors awaited the Fed’s quarterly update as the MSCI Asia ex-Japan index rose 0.51%.
Data Docket: August retail sales data will be released at 8:30 a.m. An increase of 1.1% is expected, compared to July’s 1.2% rise.
Futures are up, will the market stay positive … all day?
Tuesday, the Nasdaq had led the broader market rally as RegMed, cell and gene therapy shares continued to make up lost ground from last week’s selloff.
On Monday, the Nasdaq climbed 203.11 points, or 1.7%, to end at 11,056.65, rebounding from a rout that last week saw the IBB and XBI experienced record highs in a row.
Are we ready for the media’s assault on Chairman Jerome Powell’s presentation; the Fed will release a policy statement at 2 p.m. ET - Powell will hold a press conference a half hour later? The questions will concern the scale and composition of asset purchases, and the Fed’s long-term plan with its $7 trillion balance sheet.
Tuesday night’s post: RegMed Investors’ (RMi) closing bell: “yippee-yi-yo-ki-yay; an exclamation of joy of the oversold feelin’ the gain although some say, fast money is chasing share pricing”
- The Nasdaq closed UP +133.67 points (+1.21%);
- The IBB closed up +1.01% and XBI closed up +0.94%
- Sector volume was LOW with 6 of the 22-upside having higher than the 3-month average volume and the 1 of 12-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -0.26 points or -1.01% at 25.59;
- Tuesday’s percentage (%) of the 22-upside were +0.07% (BCLI) to +13.93% (AGTC) while the 12-downside ranges from -0.37% (ALNY) to -8.09% (PSTI);
Q3 so far:
- September, 3 positive closes, 7 negative closes and 1 holiday
- August, 10 positive closes and 11 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:
Biostage (BSTG) closed up +$0.14 to $1.55 after Monday’s +$0.04 to $1.41 and Friday’s -$0.35 to $1.37. Question#1: The market cap and credibility has experienced tremendous losses in these past months. WHAT other issues are there inhibiting this company?
bluebird bio (BLUE) closed down -$0.87 to $53.21 after Monday’s $54.08, Friday’s $53.18, Thursday’s $54.84 and Wednesday’s $57.34 and has a positive +$1.03 or +1.94% aftermarket indication;
Global Blood Therapeutics (GBT) closed down -$1.90 to $54.18 after Monday’s $56.16, Friday’s $52.76 following last Thursday’s $53.29 and the previous Wednesday’s $57.76 and has a positive +$0.30 or +0.55% aftermarket indication;
SELL into Strength:
Athersys (ATHX) closed down -$0.08 to $2.14 after Monday’s +$0.21 to $2.22 and Friday’s $2.01 and has NO aftermarket indication;
BioLife Solutions (BLFS) closed up +$1.76 to $27.68 after Monday’s +$2.15 to $25.92 and has a negative -$1.38 or -5% aftermarket indication;
Fate Therapeutics (FATE) closed up +$0.12 to $37.56 after Monday’s +$3.88 to $37.44, Friday’s $33.56, Thursday’s $31.74 and last Wednesday’s $31.29 and has NO aftermarket indication;
CRISPR Therapeutics (CRSP) closed up +$0.22 to $84.93 after Monday’s +$4.73 to $84.71 and Friday’s -$1.82 to $79.98, and has a negative -$0.03 or -0.04% aftermarket indication;
Editas Medicine (EDIT) closed up +$0.57 to $31.90 after Monday’s +$1.34 to $31.33 and Friday’s $29.99, with has a negative -$0.17 or -0.54% aftermarket indication;
Intellia Therapeutics (NTLA) closed up +$1.35 to $22.27 after Monday’s $20.92, Friday’s $19.26, Thursday’s $18.94 and last Wednesday’s $18.94 and has a negative -$0.58 or -2.62% aftermarket indication;
Sage Therapeutics (SAGE) closed up +$1.21 to $58.52 after Monday’s $57.31 and Friday’s $55.73 and has a negative -$0.11 or -0.19% aftermarket indication
Ultragenyx Pharmaceuticals (RARE closed up +$3.99 to $81.23 after Monday’s $77.24, and Friday’s $73.83 and has a negative -$1.36 or -1.68% aftermarket indication
The BOTTOM LINE: I won’t pout or spout but, I have continually said to watch overheated highs and peaks.
Same theme, different session: “Skim if you can trim, buy if it will fly and sell if compelled!”
I am still concerned about Q3 results – who has gone to the office since the beginning of the pandemic or this Q in particular?
Q3 results will face harsher analysis, and political uncertainty surrounding the November presidential election WILL add to increasing volatility
Caution is the SOP (standard operating procedure) of the week and remaining sessions of the month.
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.