September 28, 2020 8:00am

Volatility plays both sides of market and sector moves while increasing COVID infection rates continue to hamper sentiment alongside the countries polarization

Pre-open indications: 1 BUY and 5 SELLs into Strength

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 UP +1.32% (+358 points), S&P futures are UP +1.32% (+43 points) and NASDAQ futures are UP +1.71% (+190 points)

 

Stock futures jumped in early trading on Monday following a four-week losing streak;

European stocks bounced, looking to recover from their worst week since mid-June as the pan-European Stoxx 600 jumped +1.5% in early trade;

Asia pacific stocks traded mixed as Mainland Chinese stocks lagged, Australia dipped while Japan added value and the MSCI Asia ex-Japan index rose +0.74%.

 

Data Docket: European Central Bank President Christine Lagarde is scheduled to appear before the Committee on Economic and Monetary Affairs at 3:45 p.m. CEST. China’s industrial profits rose +19.1% in August, the country’s National Bureau of Statistics announced over the weekend.

 

Henry’omics:

Indexes are headed up as the month and Q3 come to a close this week …

The S&P 500 (-0.6%) and the 30-stock Dow (-1.8%) were coming off their fourth negative week while the Nasdaq gained +1%, its first positive week.

Less than a month and a half from the 2020 presidential elections and investors are starting to get panicky about the race for the White House and what that presidential contest means for already rocky markets in the coming weeks. However, it isn’t the outcome that appears to be causing trepidation in markets.

It’s HOW investors can position for a win by Democratic challenger Biden or a second term for President Trump?

It is the growing sense that results of the election won’t be decided on Nov. 3; and on top of that that, it is the possibility that even if a winner can be identified in the race between former Vice President Biden and incumbent President Donald Trump, a transition won’t be a smooth one. <MarketWatch>

 

Friday night’s post: RegMed Investors’ (RMi) closing bell: what a difference volatility makes after Thursday’s 3 incliners versus Friday’s 32 incliners of 35 covered … https://www.regmedinvestors.com/articles/11563

  • The Nasdaq closed UP +241.30 points (+2.26%);
  • The IBB closed up +2.13% and XBI closed up +2.54%;
  • Sector volume was extremely LOW with 4 of the 32-upside having higher than the 3-month average volume with the 0 of 2-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -2.13 points or -7.47% at 26.38;
  • Friday’s percentage (%) of the 32-upside were +0.12% (IONS) to +12.58% (BSTG) while the 2-downside ranges from -0.52% (VYGR) to -4.40% (RENE.L); 

Q3 so far:

  • September, 7 positive closes, 11 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 +$0.19 to $1.70 after Thursday’s -$0.22 to $1.51, Wednesday’s +$0.22 to $1.73, Tuesday’s -$0.23 to $1.51 and last Monday’s +$0.19 to $1.74, Question#1: WHAT is the role of Shunfu Hu, director of business and operations that seems to be a position of failure for WHO remains at the company? Question#2: WHAT busdev deals have been done …. NONE? Question#3: Is he the one responsible for the “MISPLACED” billing and departure of MANY consultants and employees? Question#4: What will be the effect of the Justice Department seeking an immediate ban on downloads and utilization of WeChat on Chinese investors and directors, the Chinese-owned messaging service as a threat to the security of the United States.

 

Maintaining BUY:

Editas Medicine (EDIT) closed up +$0.33 to $29.41 after Thursday’s -$2.37 to $29.08, Wednesday’s -$1.31, Tuesday’s $32.76 and last Monday’s $32.34 with a positive +$0.37 or +1.26% aftermarket indication;

 

SELL into Strength:

Athersys (ATHX) closed up +$0.04 to $2.04 after Thursday’s $2.00, Wednesday’s $1.91, Tuesday’s $1.97 and last Monday’s $2.07 and has a negative -$0.02 or -0.98% aftermarket indication.

Brainstorm Cell Therapeutics (BCLI) closed up +$0.76 to $14.95 after Thursday’ $14.19, Wednesday’s $13.98, Tuesday’s $14.59 and last Monday’s $14.50 and has a negative -$0.05 or -0.31% aftermarket indication.

Homology Medicine (FIXX) closed up +$0.22 to $11.02 after Thursday’s +$0.06 to $10.80, Wednesday’s -$0.51 to $10.74, Tuesday’s $11.25 and last Monday’s $10.66 with a positive +$0.09 or +0.77% aftermarket indication;

Sage Therapeutics (SAGE) closed up +$1.92 to $60.82 after Thursday’s $58.90, Wednesday’s $60.00, Tuesday’s $61.85 and last Monday’s $59.88 and has a negative -$0.33 or -0.54% aftermarket indication; following last week’s news of its independent Data Safety Monitoring Board (DSMB) overseeing the P1/2 clinical trial of AMT-130 for the treatment of Huntington’s disease which met and reviewed 90-day safety data from the first two patients enrolled in the trial. No significant safety concerns were noted to prevent further dosing.

 

The BOTTOM LINE: All we have seen are the extremes of sentiment and electronic trading effecting our universe of RegMed, cell and gene therapy companies.

And how much of this irregularity is due to the head and tailwinds of Washington DC’s polarization and geopolitics?

Reiterating, “I hate to say it, but I’m still telling sector investors that these new highs are fleeting.” Stick by fundamentals …

 

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.