December 4, 2020 7:56am

How many hits can momentum take -stimulus stalemate, Pfizer (PFE) supply chain issues, November’s jobs report and unemployment after Thursday’s market and sector ripple?

Pre-open indications: 2 BUY and 8 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 +0.44% (+133 points), S&P futures are UP +0.33% (+12 point) and NASDAQ futures are UP +0.32% (+40 points)

 

Stock futures rose early Friday as investors awaited a key November jobs report to gauge the pace of labor market recovery in the face of a worsening pandemic;

European markets moved cautiously higher with U.S. stimulus and Brexit at a critical juncture while the pan-European Stoxx 600 gained +0.4% by mid-morning;

Asia-Pacific were surprisingly higher as the Pentagon added more Chinese firms to a blacklist of alleged Chinese military companies as MSCI’s index of Asia-Pacific shares outside Japan rose +0.79%.

 

Data Docket: November jobs report to gauge the pace of labor market recovery in the face of a worsening pandemic.

  • The rate of job gains likely slowed in November due to the spike in new coronavirus cases that led to fresh lockdown restrictions. The U.S. economy is expected to have added 440,000 jobs, compared 638,000 in October. The unemployment rate is estimated to have decreased to 6.7% from 6.9%.
  • The latest weekly jobless claims hit a pandemic-era low, the Labor Department reported Thursday. First-time claims for unemployment benefits totaled 712,000 last week, compared with 787,000 a week earlier and the Dow Jones estimate of 780,000. Still, the claims remained well above the pre-pandemic record.

 

Henry’omics:

For a Friday, it looks positive but, I still have reservations as …

On Thursday, the stock market was hit by a report suggesting troubles with Pfizer’s coronavirus vaccine rollout.

Job layoffs showed modest improvement, but make no mistake, there are storm clouds out on the horizon ready to roll in if Congress doesn’t act to renew the unemployment benefits for gig workers and for extended benefits that expire at the end of the year,” Chris Rupkey, chief financial economist at MUFG, said in a note. <CNBC>

 

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

 

Thursday’s night’s recap: RegMed Investors’ (RMi) closing bell: “momentum is like fire; it needs to be fed by BUYING, where is the gas or fuel and oxygen coming with some rumblings of stimulus progress while the vaccine front might be slowed by supply chain problems as the virus undermines the economy” … https://www.regmedinvestors.com/articles/11662

  • The Nasdaq closed UP +27.82 points (+0.23%);
  • The IBB closed up +1% and XBI closed up +0.68%;
  • Sector volume was EACH HALF with 8 of the 16-upside having higher than the 3-month average volume with the increased volume of 8 of 16-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +0.11 points or +0.52% at 21.28;
  • Thursday’s percentage (%) of the 16-upside were +0.37% (BCLI) to +9.86% (CLLS) while the 16-downside ranges from -0.18% (FATE) to -8.09% (CLBS);

Q4:

  • Q4’s December, so far: 1 neutral and 2 positive closes
  • 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 down again -$0.0o to $1.35 with 2,418 shares traded after Wednesday’s -$0.01 to $1.36 with 8,574 shares traded, Tuesday’s +$0.01 to $1.36 with 902 shares traded, Monday’s -$0.01 to $1.35 with 1,575 shares traded and last Friday’s -0.04 to $1.36 with 1,200 shares traded;

  • Question#1: WHO or WHICH firm is BUYING (pumping) the shares; it doesn’t seem to be working in protecting the $1.35 share pricing versus the last private placement of $4.00 by Chinese investors?
  • Question#2: WILL BSTG fall under the soon to be new “Holding Foreign Companies Accountable Act” WHICH could address longstanding issues around disclosures, transparency and accountability, including limitations on foreign oversight of majority owned Chinese companies?
  • Question#3; The Boston Business Journal (yesterday) questioned life science firms that received PPP loans even though they had previously or afterwards received private placement monies ($1 million by BSTG). COULD these circumstances “serve as more than a warning … that the FBI and law enforcement partners will aggressively go after bad actors who are utilizing the COVID-19 pandemic as an opportunity to commit fraud”, said Joseph Bonavolonta, special agent in charge of the FBI’s Boston field office.

Maintaining SELL into Strength:

BioLife Solutions (BLFS) closed up +$1.44 to $36.54 after Wednesday’s $35.10, Tuesday’s $34.99, Monday’s $35.99 and last Friday’s $35.91 with a POSITIVE +0.36 or +0.99% aftermarket indication;

Fate Therapeutics (FATE) closed down -$0.11 to $60.42 after Wednesday’s  +$0.31 to $60.53, Tuesday’s +$1.76 to $60.22, Monday’s +$0.55 to $58.47 and last Friday’s $57.92, A 52-week change of +346.06% and a short percentage (%) of float of -22.79%, There’s “room” to profit with a NEGATIVE -$0.31 or -0.51% aftermarket indication;

CRISPR Therapeutics (CRSP) closed up again +$8.92 to $140.46 after Wednesday’s +$1.96 to $131.54, Tuesday’s +$2.26 to $129.58, Monday’s $126.92 and last Friday’s $121.55, with a POSITIVE +$2.54 or +1.81% aftermarket indication;

Intellia Therapeutics (NTLA) closed up +$1.84 to $42.92 after Wednesday’s +$2.98 to $41.08 after an offering priced at $36.50 and has a NO aftermarket indication;

 

Maintaining BUY:

Applied Genetic Technologies (AGTC) closed down -$0.33 to $4.67 after Wednesday’s +$0.18 to $5.00, Tuesday’s $4.82, Monday’s $4.44 and last Friday’s $4.34 with a POSITIVE +$0.11 or +2.35% aftermarket indication;

Global Blood Therapeutics (GBT) closed down -$0.88 to $43.90, after Wednesday’s -$3.40 to $44.78, Tuesday’s +$2.27 to $48.18, Monday’s +$1.01 to $45.91 and last Friday’s +$44.90 and has a POSITIVE +$0.24 or +0.56% aftermarket indication;

SELL from BUY:

Editas Medicine (EDIT) closed up +$1.67 to $33.23 after Wednesday’s -$0.34 to $31.56, Tuesday’s $31.90 and Monday’s $30.59 with a NEGATIVE -$0.23 or -0.69% aftermarket indication;

Mesoblast (MESO) closed down -$0.10 to $15.74 after Wednesday’s +$0.03 to $15.12, Monday’s +$0.16 to $15.09 and last Friday’s +$14.93 and has a NEGATIVE -$0.43 or -2.73% aftermarket indication;

Sage Therapeutics (SAGE) closed up +$1.29 to $69.86 after Wednesday’s -$4.07 to $68.57, after Tuesday’s $72.64 and Monday’s $74.09 with a NEGATIVE -$1.86 or -2.66% aftermarket indication;

 

The BOTTOM LINE: Repeating what I stated last night, “Life inside a stock market bubble is great until someone takes out a pin!” <MarketWatch>

Sitting on a portfolio is foolish, “different fuels feed every bubble, and this one includes working from home, increased leisure time, low trading costs and abundant investing commentary to sustain one’s appetite”.

MY, warnings are sound about elevated valuations but it remains hard to walk away from higher pricing; but, review the charts, dips and slips partial exits prepare tour positions before the sector corrects.

And it will …

Trouble is, no one sees the bus that hits them … short-term trading builds cash positions, eliminates periodic downtrends before the always coming down trends.

 

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.