September 17, 2020 8:13am

Prospects are dimming for “our” universe

Pre-open indications: 1 BUY and 5 SELLs

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Dow futures are DOWN -0.89% (-248 points), S&P futures are 1.27% (-43 points) and NASDAQ futures are DOWN -1.94% (-219 points)

 

U.S. stock futures drop as tech stocks declined; shares of stocks that would benefit most from a vaccine struggled in premarket trading amid conflicting messages about the timeline;

European markets retreated as investors around the world reacted to the latest U.S. Federal Reserve meeting as the pan-European Stoxx 600 dropped 0.8%;

Asia-Pacific markets mostly declined as investors reacted to central bank developments as the MSCI Asia ex-Japan index shed 1%.

 

Data Docket: U.S. weekly jobless claims which are expected to total 875,000, according to economists, down slightly from the prior week. U.S. housing starts data are also set for release at 8:30 a.m.

 

Henry’omics:

We’re looking at a falling market, today – Thursday…

The S&P 500 and Nasdaq both closed lower and the Dow ended well off its session high.

Global investors weighed their reaction, as the U.S. Federal Reserve’s policymaking committee indicated the overnight rate could stay close to zero for years to reach its 2% inflation target.

 

Wednesday night’s post: RegMed Investors’ (RMi) closing bell: the sector’s latest ups and growing downs ... https://www.regmedinvestors.com/articles/11548

  • The Nasdaq closed DOWN -139.85 points (-1.25%);
  • The IBB closed up +0.09% and XBI closed up +2.19%;
  • Sector volume was LOW with 6 of the 23-upside having higher than the 3-month average volume and the 7 of 10-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +0.45 points or +1.76% at 26.04;
  • Wednesday’s percentage (%) of the 23-upside were +0.16% (ADVM) to +19.81% (AXGN) while the 10-downside ranges from -0.14% (FIXX) to -9.03% (BSTG); 

Q3 so far:

  • September, 4 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:

Maintaining Sell:

Biostage (BSTG) closed down -$0.14 to $1.41 after Tuesday’s +$0.14 to $1.55 and Monday’s +$0.04 to $1.41.

  • Question#1: DST Capital just raised money through the execution of warrants, is the money going into BSTG?
  • Question#2: When and where is the clinical trial beginning?
  • Question#3: WHY has president Hong Yu impeded the scientific process (he has in his past patterns), scientists are leaving and WHO is left – one (1) scientist and a CSO who has been to the company – WHEN was the last time?
  • Question#4: Could BSTG LOSE the ability to communicate with Chinese investors if a looming U.S. ban goes into effect on the Chinese app WeChat (according to a government court filing Wednesday)?

Maintaining SELL into Strength:

CRISPR Therapeutics (CRSP) closed up again +$0.70 to $85.63 after Tuesday’s +$0.22 to $84.93 and Monday’s +$4.73 to $84.71 and has a negative -$0.13 or -0.15% aftermarket indication;

Editas Medicine (EDIT) closed up again +$1.32 to $33.22 after Tuesday’s +$0.57 to $31.90 and Monday’s +$1.34 to $31.33 with a positive +$0.28 or +0.84% aftermarket indication;

Mesoblast (MESO) closed up +$0.31 to $18.01 after Tuesday’s $17.70 and Monday’s $17.30 with a negative -$0.01 or -0.06% aftermarket indication;

Vericel (VCEL) closed up +$0.83 to $18.95 after Tuesday’s $18.12 and Monday’s $17.60 and the previous Friday’s $17.16 and Thursday’s $16.32 with a positive +$0.08 or +0.42% aftermarket indication and a 52-week change of 12.34%;

BUY:

Ionis Pharmaceuticals (IONS) closed down -$1.16 to $51.77 after Tuesday’s $52.93, Monday’s $53.74 and last Friday’s $51.97 and the previous Thursday’s $51.52 with a positive +$0.78 or +1.50% aftermarket indication;

 

The BOTTOM LINE: Reiterating, “I won’t pout or spout but, I have continually said to watch overheated highs” and coming deepening valleys.

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.