October 14, 2020 7:55am

Headlines spook the markets and investors

Pre-open indications: 1 BUY and 2 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 +0.08% (+23 points), S&P futures are DOWN -0.07% (-3 points) and NASDAQ futures are UP +0.20% (+25 points)

 

U.S. stock index futures were MIXED on Wednesday …

European stocks were mostly higher with the pan-European Stoxx 600 gaining +0.3% by mid-morning;

Asia-Pacific were lower, as investors reacted to a speech from Chinese President Xi Jinping.

  • Xi emphasized the importance of protecting the “legitimate rights and interests of entrepreneurs, property rights as well as intellectual property rights in accordance with the law,” according to a translation of his speech. That would “motivate entrepreneurs to start up and develop their businesses,” he said. <Which means WHAT? – They will steal more from others to support their own platforms>

 

Henry’omics:

Indexes flopped and flipped amid a number of crosswinds. Eli Lilly (LLY) paused its trial of a coronavirus antibody treatment, following Johnson & Johnson’s (JNJ) halting its vaccine trial after an “adverse event” was reported.

While hopes for near-term stimulus have faded as Democrats and Republicans remain at odds.

And then, there is the beginning of earnings’ season … as COVID-19 cases spike.

Despite Tuesday’s dip, stocks are still in the green for October; the Dow (+3%) is up with the S&P 500 (+4%) and Nasdaq (+6%).

 

Tuesday night’s post: RegMed Investors’ (RMi) closing bell: “sector closed positive after lower moves. Negative COVID headlines, fading chances of a fiscal stimulus has hindered markets”

  • The Nasdaq closed DOWN -122.36 points (-0.10 %);
  • The IBB closed up +0.48% and XBI closed up +1.37%
  • Sector volume was the usual LOW with 7 of the 20-upside having higher than the 3-month average volume with the increased volume of 0 of 12-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +1 points or +3.99% at 26.07
  • Tuesday’s percentage (%) of the 20-upside were +0.25% (MESO) to +4.58% (GBT) while the 12-downside of -0.23% (ALNY) to -4.78% (PGEN);

Q4’s October, so far: 1 neutral, 5 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 after Monday’s -$0.01 to $1.50, Friday’s flat, Thursday’s $1.51 and last Wednesday’s -$0.09 to $1.51.  Question#1: WHERE and WHEN are the clinical trials to begin, it has been March since the IND got approved?

SELL into Strength:

Ultragenyx (RARE) closed up +$1.90 to $97.40 after Monday’s $95.50 and last Friday’s $94.45, Thursday’s $94.43 and last Wednesday’s $94.20 with a NEGATIVE -$0.76 or -0.78%;

BUY:

bluebird bio (BLUE) closed down -$1.64 to $56.75 after Monday’s $58.39 and last Friday’s $57.60 with a POSITIVE +$0.32 or +0.56%;

 

The BOTTOM LINE: Reiterating, 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.

Markets do NOT reflect the uncertainty, pauses and pain in the economy and some issues re J&J’s single-dose COVID-19 vaccine being developed.

 

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.