September 21, 2020 7:56am

Investors are caught-up in Washington’s Supreme Court acrimony, post quadruple witching actions, while EU slides on coronavirus infection rates and Asia dives on money-laundering allegations and then there is the TikTok “deal” questions and WeChat legal issues. Let’s not forget Shares of GM slip and Nikola, a one-time high-flying SPAC-turned electric vehicle play, dropped 27% in pre-market trading…so far

What I provide is an “intelligence daily” to ensure that shareholders are kept apprised based on a 24-hour surveillance of “our” universe, the RegMed/cell and gene therapy sector and its surrounding markets

Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!

My gift to you, I've kept RMi subscription FREE during these COVID-19 and volatile times!

 

Dow futures are DOWN -1.99% (-549 points), S&P futures are DOWN -1.74% (-58 points) and NASDAQ futures are DOWN 1.83% (-200 points)

 

U.S. stock futures fell sharply in Monday’s pre-open, as the possibility of an acrimonious U.S. Supreme Court nomination process emerges and the non-progress of additional stimulus;

European stocks retreated as allegations surrounding bank dealings and rising coronavirus infections weigh on market sentiment as the pan-European Stoxx 600 dropped 2.8% by late morning;

Asia Pacific markets were roiled as Hong Kong-listed shares of Standard Chartered and HSBC tumbled following reports that they allegedly moved large sums of suspicious funds. Markets in Japan are closed on Monday for a holiday while the MSCI Asia ex-Japan index fell -1%.

 

Henry’omics:

Will our “universe” of RegMed, cell and gene therapy get caught up or down in today’s market?

Negotiations for a second stimulus bill could become more complicated after the passing of Supreme Court Justice Ruth Bader Ginsburg, which could lead to a bitter nomination process ahead of the election. <CNBC>

Tech shares are coming under pressure in part on valuation concerns within the space as well as options of individual stocks, ETFs and indexes expired.

Friday ended a volatile week as investors jumped on the oversold RegMed, cell and gene therapy sector buying the undervalued with increased volume (covering shorts).

You should trust your instincts if you’re nervous because of the wobbly action in the S&P 500 Index -1.11%, Nasdaq -1.07% and the Dow -0.87% since these indices got slammed in early September.

 

Friday night’s post: RegMed Investors’ (RMi) closing bell: the bouncing share pricing … https://www.regmedinvestors.com/articles/11552

  • The Nasdaq closed DOWN -117 points (-1.07%);
  • The IBB closed up +0.51% and XBI closed up +1.10%
  • Sector volume INCREASED with 19 of the 29-upside having higher than the 3-month average volume and the 3 of 5-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.63 points or -2.38% at 25.83;
  • Friday’s percentage (%) of the 29-upside were +0.02% (QURE) to +12.17% (BLCM) while the 5-downside ranges from -0.94% (MESO) to -5.06% (SLDB); 

Q3 so far:

  • September, 5 positive closes, 8 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 up +$0.05 to $1.55 after Thursday’s +$0.09 after Wednesday’s -$0.14 to $1.41, Tuesday’s +$0.14 to $1.55 and Monday’s +$0.04 to $1.41. Question#1: Will WeChat legal issues will cut down communication with the majority Chinese investors and the three (3) of four (4) board of director (BOB) members?

Other memebers of my "covered" universe ...

********* I’m NOT trusting ANY indicator today ********

 

The BOTTOM LINE: I believe a sell-off is coming again … as September hasn’t made investors happy.

Seasonal and emotional trading patterns are at play.

The financial markets are entering a most treacherous time; possibilities and polarization pre the election (and title subjects) are evident in the derivatives markets.

Watch the advance-decline line, one of my favorite indicators. Watch the roll-up and roll-down of the numbers.

 

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.