November 25, 2020 7:42am

My turkey, gravy, stuffing and pie bags were picked-up and I’m headed down steep steps to the den, holiday away!

Pre-open indications: 2 BUYs and 3 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

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Dow futures are DOWN -0.08% (-25 points), S&P futures are UP +0.04% (+2 points) and NASDAQ futures are UP +0.35% (+43 points)

 

Futures were slightly lower on Wednesday a day after the benchmark topped a significant milestone;

European stocks were lower pausing for breath after rallying as the pan-European Stoxx 600 index slipped -0.2%;

Asia-Pacific were mixed after a recent rally with the MSCI’s index of Asia-Pacific shares outside Japan dipping -0.37%.

 

Data Docket: The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to a survey low of 2.92% from 2.99%. Mortgage applications to purchase a home rose 4% for the week and were 19% higher than the same week one year ago.

 

Henry’omics:

A pause, a breath, an escape from a steep rally …

The stem, cell and gene therapy sector are in small cap territory which have closed at a record high, with the Russell 2000 surging nearly 2%. That gain put the Russell up more than 20% for November, which would be its best-ever monthly performance.

 

An Update: RegMed/Cell and Gene Therapy Earnings Scorecard Q3/20 LPS Results https://www.regmedinvestors.com/articles/11628     

 

Tuesday’s day night’s recap: RegMed Investors’ (RMi) closing bell: “today was supposed to be a catch-up trade in the sector, ending as  a set-up for the algorithms to reap profit; never trust new or all-time highs … https://www.regmedinvestors.com/articles/11649

  • The Nasdaq closed UP +156.15 points (+1.31%);
  • The IBB closed down -0.60% and XBI closed down -0.34%;
  • Sector volume was the usual LOW with 6 of the 17-upside having higher than the 3-month average volume with the increased volume of 5 of 16-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -1.02 points or -4.50% at 21.64;
  • Tuesday’s percentage (%) of the 17-upside were +0.35% (AXGN) to +7.69% (BCLI) while the 16-downside ranges from -0.01% (CRSP) to -18.42% (RENE.L);

Q4’s: November, so far: 14 positive and 3 negative closes

  • Q4’s October: 1 neutral, 11 positives with 1 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 at $1.40 with 854 shares traded after Monday’s 2,100 shares traded, Friday’s 1,704 shares traded, Thursday’s +$0.09 with 6,351 shares traded) and last Wednesday’s $1.40 with o shares traded) – 6 trading days at $1.40.

  • Question#1: WHY is BSTG a ZOMBIE company; Yu’s on first, Hu’s on second since WHEN is NOT headed to the clinical trials, so WHERE are they going with this scientific platform?

 

SELL into Strength:

Fate Therapeutics (FATE) closed up again +$0.98 to $55.27 after Monday’s+$1.64 to $54.29, Friday’s +$2.94 to $52.65 99, Thursday’s $49.71, Wednesday’s $49.72 and last Tuesday’s $52.42 with a NEGATIVE -$0.22 or -0.40% aftermarket indication. A 52-week change of +261.93% and a short percentage (%) of float of -23%, There’s “room” to profit;

Mesoblast (MESO) closed up again +$0.93 to $16.74 after Monday’s +$2.03 to $15.81, Friday’s +$1.99 to $13.78, Thursday’s $11.79, Wednesday’s $11.80 and last Tuesday’s $11.76 with a NEGATIVE -$0.74 or -4.42% aftermarket indication

 

Maintaining BUY:

Applied Genetic Technologies (AGTC) closed up +$0.05 to $4.33 after Monday’s $4.28, Friday’s $3.99, Thursday’s $4.05 and last Wednesday’s $4.31 with a POSITIVE +$0.03 or +0.69% aftermarket indication. Another I love bottoms – OVERSOLD;

bluebird bio (BLUE) closed down again -$0.09 to $42.64 after Monday’s -$0.34 to $42.73, Friday’s -$1.09 to $43.07, Thursday’s $44.16 and last Wednesday’s $44.43 with a POSITIVE +$0.36 or +0.84% aftermarket indication. Call me foolish yet, I like bottoms; a 52-week high of $99.36 with a low of $38.95 – OVERSOLD;

 

 

The BOTTOM LINE: The sector’s gains are slipping even as markets incline despite the momentum; I believe the algorithms are “hungry” for profiteering.

Gobble, gobble – have a Happy Thanksgiving and be SAFE; unfortunately, family interactions will be limited but, more apple pie for the fewer!

 

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.