October 29, 2020 8:03am
The sector’s pullback could prove to be a buying opportunity … for some post earnings’ reporting equities
Pre-open indications: 3 BUYs and 1 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 DOWN -0.09% (-23 points), S&P futures are UP +0.19% (+6 points) and NASDAQ futures are UP +0.54% (+61 points)
U.S. stock futures rebound yet, fluctuate on Thursday morning after a sharp sell-off on Wednesday;
European markets whipsawed as investors digest new lockdown measures in France and Germany and await the European Central Bank’s latest monetary policy decision yet, the pan-European Stoxx 600 was+ 0.2% higher in early trade;
Asia-Pacific fell in following an overnight plunge of U.S. equities as coronavirus cases continue to surge in the West: Australia led the pack to the downside with mainland China rising
Data Docket: a preliminary read on U.S. gross domestic product for Q3. Economists expect growth of 32% on an annualized basis, but even that historic jump would leave the economy well below where it was before the Covid-19 pandemic and there are signs that the pace of the recovery has slowed in recent months.
Henry’omics:
Markets are nervous and also jumpy ahead of the U.S. election on Tuesday (Nov. 3) with all the rhetoric about the Biden family, soaring coronavirus cases stateside and diminishing hopes of imminent fiscal stimulus.
Wednesday night’s post: RegMed Investors’ (RMi) closing bell: “declines = reducing exposure; most covered companies suffered from the exposure”
- The Nasdaq closed DOWN -426.48 points (-3.73%);
- The IBB closed down -2.58% and XBI closed down -2.75%
- Sector volume was the usual LOW with 0 of the 3-upside having higher than the 3-month average volume with the increased volume of 6 of 30-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +8.93 points or +20.78% at 40.28;
- Wednesday’s percentage (%) of the 3-upside were +0.62% (ATHX) to +2.73% (BLCM) while the 30-downside ranges from -0.29% (SLDB) to -10.24% (KDNY);
Q4’s October, so far: 1 neutral, 10 positive and 9 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 down -$0.04 to $1.36 with 261 shares traded after Tuesday’s flat at $1.40, Monday’s +$0.04 to $1.40 with 217 shares traded after Friday’s -$0.07 to $1.36 with 200 shares traded.
- Question#1: WHO will be the next resignation?
- Question#2; WHAT are the risks of taking the PPP loan; debt, repayment and possible punishment?
BUY from SELL:
CRISPR Therapeutics (CRSP) closed down -$3.41 to $94.71 after Tuesday’s +$3.99 to $98.12 and Monday’s +$1.48 to $94.13 with a POSITIVE -$0.29 or -0.31% aftermarket indication;
bluebird bio (BLUE) closed down -$1.24 to $52.49 after Tuesday’s $53.73, Monday’s $53.52, last Friday’s $55.53 and the previous Thursday’s $55.51 with a POSITIVE +$0.51 or +0.97% aftermarket indication;
Maintaining BUY:
Alnylam Pharmaceuticals (ALNY) closed down again -$1.94 to $124.88 after Tuesday’s -$1.85 to $126.82, Monday’s -$3.12 to $128.67 and last Friday’s -$2.46 to $131.84 with NO aftermarket indication. Oversold as October 1st began at $143.74 and seeing a high of $147.00;
The BOTTOM LINE: Risk and sentiment continued to weigh on investors, there is certainly NO specific pattern as …
The RegMed, stem, cell, and gene therapy sector wandered from a loss to a gain from a loss as exhibited by Wednesday’s A/D <advance/decline> closes of 3/30, Tuesday’s 19/13 and Monday’s 9/24.
While the IBB closed down on Wednesday (-2.58%), up on Tuesday +0.56%) from a down on Monday (-1.01%) with the XBI closing down (-2.75%) on Wednesday, after Tuesday’s (+1.19%) and Monday’s (-1.34%).
Reiterating … “Uncertainty about COVID-19-related mobility restrictions and US election political uncertainty mean investors should expect volatility to remain elevated for the next week or even two (2).”
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.
