December 2, 2020 8:12am

The algorithms have been circling, hungry for profiteering

Pre-open indications: 3 BUY 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 DOWN -0.51% (-151 points), S&P futures are DOWN -0.39% (-14 points) and NASDAQ futures are DOWN -0.38% (-47 points)

 

U.S. stock futures slipped lower early Wednesday, despite recent strength that has brought the major averages to record highs;

European stocks pulled back feeling the impact of mixed sentiment by their U.S. and Asia-Pacific counterparts.

Asia-Pacific stocks were mixed even as the MSCI’s index of Asia-Pacific shares outside Japan advanced +0.24%.

 

Data Docket: Private payrolls data from ADP will be released at 8:15 a.m. ET on Wednesday. Economists polled by Dow Jones are expecting 475,000 private jobs were added in November, compared to the 365,000 added in October.

 

Henry’omics:

Gravity is a force …

Strength has been moving markets followed by the sector; as the Dow climbed 185 points, the S&P 500 topped 1.13%, while the Nasdaq closed up 1.3%.

However, Sentiment got head faked as a $908 billion stimulus plan, was rejected by Senate Majority Leader Mitch McConnell

 

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

 

Intellia Therapeutics (NTLA) proposes offering … https://www.regmedinvestors.com/articles/11655

 

Tuesday’s night’s recap: RegMed Investors’ (RMi) closing bell: “another record high as weighting eclipses resistance with sector climbing along. Vaccine news has further buoyed spirits with several airlines making delivery to geographic localities for tiered groups” … https://www.regmedinvestors.com/articles/11658

 

  • The Nasdaq closed UP +156.37 points (+1.28%);
  • The IBB closed up +0.23% and XBI closed down -0.20%
  • Sector volume was INCREASING with 10 of the 20-upside having higher than the 3-month average volume with the increased volume of 5 of 15-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +0.20 points or +0.97% at 20.77
  • Tuesday’s percentage (%) of the 20-upside were +0.20% (MESO) to +8.56% (AGTC) while the 15-downside ranges from -0.09% (BCLI) to -12.47% (BLCM);

Q4’s: December 1st day

  • Q4’s December, so far: 1 positive close
  • Q4’s November: 16 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 up +$0.01 to $1.36 with 902 shares traded after Friday’s -$0.01 to $1.35 with 1,575 shares traded, Friday’s -0.04 to $1.36 with 1,200 shares traded following Thursday’s holiday, Wednesday’s flat with 900 shares traded and last Tuesday’s flat at $1.40 with 1,200 shares traded).

  • Question#1: Biostage is a zombie company, especially with NO financial stall (maybe a rental interim CFO for reporting) and NO audit committee or even a member, WHY have all five (5) AUDIT committee members QUIT in three (3) years?
  • Question#2: HOW many financial staff members (controllers and payables staff etc.) have quit in last three (3) years (?) - five (5)?

 

Maintaining SELL into Strength:

Fate Therapeutics (FATE) closed up again +$1.76 to $60.22 after Monday’s +$0.55 to $58.47, Friday’s $57.92, Thursday’s holiday, Wednesday’s $57.13 and last Tuesday’s $55.27 with NO aftermarket indication. A 52-week change of +314.39% and a short percentage (%) of float of -22.79%, There’s “room” to profit;

CRISPR Therapeutics (CRSP) closed up +$2.26 to $129.58 after Monday’s $126.92, Friday’s $121.55, Thursday’s holiday, Wednesday’s $110.00 and last Tuesday’s $109.99 with a POSITIVE +$0.12 or +0.09% aftermarket indication;

 

BUY from SELL:

Global Blood Therapeutics (GBT) closed up +$2.27 to $48.18 after Monday’s +$1.01 to $45.91, Friday’s +$44.90, Thursday’s holiday and last Wednesday’s $43.85 and has a POSITIVE +$0.31 or +0.64% aftermarket indication;

Mesoblast (MESO) closed up +$0.03 to $15.12 after Monday’s +$0.16 to $15.09, Friday’s +$14.93, Thursday’s holiday and last Wednesday’s $16.74 and has a POSITIVE +$1.38 or +9.13% aftermarket indication;

Pluristem (PSTI) closed down -$0.13 to $9.98 after Monday’s $10.11, Friday’s $9.58, Thursday’s holiday, Wednesday’s $9.58 and last Tuesday’s +$9.31 with a POSITIVE +$0.09 or +0.90% aftermarket indication

 

The BOTTOM LINE: Reiterating, I am getting nervous after November’s highs as the Dow rallied 11.8%, the S&P 500 at +10.8% and Nasdaq +11.8%. Thus, I formulate Selling into Strength partial or some positions.

November’s rally also came amid a slew of positive coronavirus vaccine news, which lifted hope of a strong economic recovery and sparked a surge in beaten-down value names ...but, when will the vaccines be needle filled and arm swabbed?

 

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.