October 20, 2020 8:04am
Which political party is going to blink - a stimulus deal failure would miss a chance to make the U.S. economic recovery “evener” unfortunately creating a huge government debt which will linger over a greater period of years?
Pre-open indications: 3 BUYs and 3 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
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Dow futures are UP +0.61% (+171 points), S&P futures are UP +0.64% (+21 points) and NASDAQ futures are UP +0.61% (+72 points)
U.S. stock futures are up on optimism <hopefulness>, Tuesday ahead of a deadline for a new fiscal stimulus deal
European markets mixed on caution over coronavirus and U.S. stimulus progress while the pan-European Stoxx 600 was little changed for the session
Asia-Pacific stocks mixed as China keeps benchmark lending rate unchanged while the MSCI’s broadest index of <Asia-Pacific> shares outside Japan was below the flatline.
Data docket: housing starts (SAAR) and building permits (SAAR)
- Randal Quarles, the Federal Reserve’s vice chair for financial stability, was scheduled to speak at the SIFMA annual meeting at 10:50 a.m. Eastern time, while Chicago Fed President Charles Evans is slated to deliver a speech on the outlook to the Detroit Economic Club at 1 p.m. Atlanta Fed President Raphael Bostic is due to take part in a panel discussion on housing at the Penn Institute for Urban Research at 5 p.m.
Henry’omics:
What is considered progress in stimulus talks – one side demanding a 48-hour walk-away (speaker Pelosi) or NO deal till after election?
Recap: WHY did the market suffer a broad decline during Monday’s session, with the Dow drropped-1.44% (410 points), the S&P 500 -1.63% (-56.89 points) and Nasdaq lost -1.65% (-192.67 points).
- The slump marked the fourth down day in five sessions for the Dow and the S&P 500, while it was the fifth-straight negative session for the Nasdaq.
Monday night’s post: RegMed Investors’ (RMi) closing bell: “risk and cautionary momentum integrated with negative expectation are the tags associated with today’s sector and market’s behavior. The sector is coming off a week of choppy trading action starting with a stimulus deadline without a deal”.
- The Nasdaq closed DOWN -192.67 points (-1.65%);
- The IBB closed down -1.63% and XBI closed down -1.93%;
- Sector volume was the usual LOW with 2 of the 6-upside having higher than the 3-month average volume with the increased volume of 6 of 25-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +1.77 points or +6.46% at 29.18;
- Monday’s percentage (%) of the 8-upside were +0.15% (IONS) to +4.98% (QURE) while the 25-downside of -0.52% (AXGN) to -10.75% (BCLI);
Q4’s October, so far: 1 neutral, 7 positive and 5 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 at $1.50 with 45 shares traded after Thursday’s-$0.02 to $1.50 with 100 shares traded after Wednesday’s +$0.02 with 368 shares traded, Tuesday’s flat and last Monday’s -$0.01 to $1.50. Question#1: Question#1” SHOULD the SEC be reviewing RMS, the accounting firm and their performance of BSTG’s accounting practices? Question#2: Should RMS be OVERSIGHTED by regulators WHERE BSTG is without any audit board members or designated financial officer? Question#3: NASDAQ listing requires designated individuals – WHY NOT BSTG, do the Chinese company (most with green cards) officers NOT believe they NEED to follow U.S. legal regulations, statutes and laws? Questions sooner or later require answers … REGULATORS are needed!
Athersys (ATHX) closed down -$0.08 to $1.79 and has a NEGATIVE -$0.05 or -2.79% aftermarket indication;
SELL into strength:
Fate Therapeutics (FATE) closed down -$1.12 to $47.52 after Friday’s +$0.54 to $48.64, Thursday’s +$1.14 to $48.10, Wednesday’s $46.96 and last Tuesday’s $49.04 with a POSITIVE +$0.17 or +0.36% aftermarket indication <it was +$0.76 or +1.59%>. However, a 52-week change of +234.76%, a short percentage (%) of float of -22.35% and a VERY “peaky” chart;
Pluristem (PSTI) closed up +$0.46 to $11.14 and has a NEGATIVE -$0.94 or -8.44% aftermarket indication. Problem is, I like PSTI and the individuals running the company – now but, trading rules say SELL and as it drops – I recommend BUYING it back at a lower price with the proceeds;
BUY:
Adverum Biotechnologies (ADVM) closed down -$0.77 to $11.56 and has a POSITIVE +$0.31 or +2.68% aftermarket indication;
Maintaining BUY:
bluebird bio (BLUE) closed down -$1.55 to $54.55 after Friday’s +$0.82 to $56.10, Thursday’s -$0.51 to $55.28, Wednesday’s -$0.96 to $55.79 and last Tuesday’s -$1.64 to $56.75 with a POSITIVE +$1.23 or +2.25% aftermarket indication;
Ionis Pharmaceuticals (IONS) closed up +$0.07 to $47.20 after Friday’s -$1.16 to $47.13, Thursday’s $48.29, Wednesday’s $47.71 and last Tuesday’s $47.97 with a POSITIVE +$0.31 or +0.66% aftermarket (Friday) indication;
The BOTTOM LINE: I am STILL of the opinion that dark clouds are forming over the market!
Theme for today’s (like yesterday) session and maybe the week: which way it can or will go, I’m out of words.
I also continue to say: maintain a presence in the sector, SELL the highs and be prepared for a tough Q3 reporting season re LPS (loss-per-share).
This COVID-19 pandemic is not over, vaccines are on there way but, the wreck upon the economy is being under-estimated as political parties “war” over their own polarizations!
There are too many mixed signals emanating re the stimulus – it’s a game who can bluff the farthest with NO possible recourse – WHY can’t the democrats led by House Speaker Pelosi get their representation of the American people together and represent?
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.
