October 12, 2020 8:15am

And once Q3 results are released, even then be careful of short-term peaks and follow-on valley’s

Pre-open indications: 6 SELLs

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 +0.06% (+17 points), S&P futures are UP +0.53% (+19 points) and NASDAQ futures are UP +1.66% (+195 points)

 

Futures are slowly moving  to the upside Monday morning;

European stocks were mostly higher, tracking overnight gains in Asia on the back of strong Chinese data, while rising coronavirus cases in Europe continued to cap optimism as the pan-European Stoxx 600 edged +0.2% higher;

Asia-Pacific mostly advanced with investors monitoring the Chinese yuan’s movements.

  • The moves in Chinese stocks came after state media outlet Xinhua reported Sunday that the country “unveiled a new comprehensive reform plan for Shenzhen,” giving local authorities there a “more direct and greater say in business” in areas such as carrying out market-based economic reforms. <CNBC>
  • Investors monitored the yuan’s movements on Monday, after a rule change that made it cheaper to short the yuan. <People’s Bank of China>

 

Henry’omics:

Supposedly, the stimulus will stimulate the market higher but, what will it do for regular Americans?

However, chances for another round of stimulus before the election appeared to dim over the weekend.

Dynamics and partisanship are badly misconstrued and not just lately,

  • Traders short the yuan when they expect the currency to weaken in future. One way to do so is to borrow in yuan in hopes of buying it back at a lower price later and pocketing the difference. <CNBC>

 

Friday night’s post: RegMed Investors’ (RMi) closing bell: “headed to the weekend with a smile from the market and a stuffed olive in the libation”

  • The Nasdaq closed UP +148.96 points (+1.39%);
  • The IBB closed up +0.81% and XBI closed up +0.92%
  • Sector volume was the usual LOW with 7 of the 21-upside having higher than the 3-month average volume with the increased volume of 2 of 9-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -1.36 points or -5.16% at 25.00;
  • Friday’s percentage (%) of the 21-upside were +0.02% (RARE) to +29.02% (PGEN) while the 9-downside ranges from -0.23% (BLUE) to -4.62% (SAGE);

Q4’s October, so far: 4 positive and 3 negative closes

Q3: July through September: 1 neutral, 28 positive and 34 negative closes with 2 holidays

 

Companies in my headlights – It’s your decision; I provide an idea and context:

Maintaining Sell:

Biostage (BSTG) closed flat again on Friday after Thursday’s $1.51 after Wednesday’s -$0.09 to $1.51, Tuesday’s -$0.01 to $1.60 <after being up +$0.28> after Monday’s +$0.01 to $1.61.  Question#1: WHY did BSTG’s financial staff pay local bills with EFTs to pay bills which generated thousands and upon thousands of dollars < high six (6) figures> being spent when a stamp would have sufficed? Question#2: WHO is NOW managing compliance?

Maintaining SELL into Strength:

CRISPR Therapeutics (CRSP) closed up +$2.87 to $98.26 after Thursday’s -$2.29 to $95.39, Wednesday’s +$9.96 to $97.68 and has a POSITIVE +$0.34 or +0.35% aftermarket (Friday) indication. New highs over gene editing Nobel prize are time to sell “some” and a 52-week change of +167.88%;

Intellia Therapeutics (NTLA) closed up +$3.37 to $26.31 after Thursday’s -$0.84 to $22.94, Wednesday’s +$2.77 to $23.78 and has a NEGATIVE -$0.31 or -1.18% aftermarket indication. New highs over gene editing Nobel prize are time to sell “some” and a 52-week change of +141.27%;

 

BUY to Sell into Strength:

Precigen (PGEN) closed up +$1.28 to $5.69 after Thursday’s +$0.03 to $4.41 and has news of Merck KGgA, through its subsidiary Ares Trading S.A increased its stake in PGEN with a POSITIVE +$0.03 or +0.53% aftermarket (Friday) indication;

Alnylam Pharmaceuticals (ALNY) closed up +$0.96 to $147.00 after Thursday’s $146.04, Wednesday’s $145.40, Tuesday’s $143.26 and last Monday’s $142.00 and has a POSITIVE +$0.41 or +0.28% aftermarket (Friday) indication;

Editas Medicine (EDIT) closed up +$2.38 to $33.09 after Thursday’s $30.71, Wednesday’s $31.04, Tuesday’s $28.76 and last Monday’s $29.14 and has a NEGATIVE -$0.09 or -0.27% aftermarket (Friday) indication;

 

The BOTTOM LINE: I’m NOT banking on a stimulus and I don’t think investors fully understand how many small, medium and large business closures are happening.

The key is NOT to wait for any trade, lately it’s pure speculation.

I just want to be … INTO … very low risk equities re pricing (closer to lows to later ride the upside) - right now.

 

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.