December 17, 2020 8:01am
The sector closed neutral as markets finished off a mixed session
Pre-open indications: 4 BUYs and 5 SELLs
What I provide is a trusted source of share pricing intelligence that ensures that investors are kept apprised of “our” universe, the RegMed/cell and gene therapy sector and its surrounding markets
A pre-open briefing on what you need to know in the session ahead!
Dow futures are UP +0.32% (+97 points), S&P futures are UP +0.47% (+17 points) and NASDAQ futures are UP +0.47% (+59 points)
U.S. stock futures rose on Thursday, waiting for fiscal aid through snow covered goggles;
European stocks also rose in reaction to the U.S. Fed’s comments that it will continue to support the economy;
Asia-Pacific markets were mostly higher as investors reacted to the U.S. Fed’s support commitments.
Data Docket: Building permits, November (1.558 million expected, 1.544 million in October); Housing starts, November (1.533 million expected, 1.530 million in October); Philadelphia Fed Business Outlook index, December (20.0 expected, 26.3 in November); Initial jobless claims, week ended December 12 (823,000 expected, 853,000 during prior week); Continuing claims, week ended December 5 (5.7 million expected, 5.757 million during prior week); Kansas City Fed Manufacturing Activity Index, December (10 expected, 11 in November)
A session of questions and outcomes on the rise …
Wednesday set-off a mixed session in which the S&P 500 and Nasdaq rose while the Dow posted a small loss.
A key FDA panel is scheduled to vote today on whether to recommend the approval of Moderna’s (MRNA) Covid-19 vaccine for emergency use. A favorable vote will likely clear the pathway to Moderna’s vaccine becoming the second approved for use in the United States, behind Pfizer’s.
Quadruple Witching happens on the third Friday of every December which is coming this week (12/18). Quadruple witching may provide arbitrageurs the opportunity to profit on temporary price distortions. Increased trading activity and volume happen on witching days, which can lead to gains in the market.
An Update: RegMed/Cell and Gene Therapy Earnings Scorecard Q3/20 LPS Results https://www.regmedinvestors.com/articles/11628
Wednesday’s night’s recap: RegMed Investors’ (RMi) closing bell:” optimism-based market progress. The Fed commits to holding rates steady and continuing the bond buying” … https://www.regmedinvestors.com/articles/11682
- The Nasdaq closed UP +63.13 points (+0.50%);
- The IBB closed down -0.66% and XBI closed down -1.23%;
- Sector volume STAYED UP with 11 of the 16-upside having higher than the 3-month average volume with the increased volume of 7 of 16-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -0.39 points or -1.70% at 22.50;
- Wednesday’s percentage (%) of the 16-upside were +0.20% (BLUE) to +19% (MDXG) while the 16-downside ranges from -0.17% (SLDB) to -8.12% (ADVM);
- Q4’s December, so far: 2 neutral, 3 negative and 7 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:
Biostage (BSTG) closed down -$0.0285 to $1.39with 786 shares traded after Tuesday’s +$0.06 to $1.42 with 3,122 shares traded, Monday’s +$0.01 to $1.36 with 545 shares traded, Friday’s flat again at $1.35 with 83 shares traded and last Thursday’s 337 shares traded.
- Question#1: WHAT is BSTG’s connection and relationships with Dixintong Technology Group, whose parent company, D. Phone, is one of the largest smartphone retailers in China and its chairman, LIU Dong-hai?
SELL into Strength:
Alnylam Pharmaceuticals (ALNY) closed up $2.62 to $138.32 after Tuesday’s $ and Monday’s $ with a NEGATIVE -$2.28 or -1.65% aftermarket indication;
Chinook Therapeutics (KDNY) closed up +$2.19 to $19.20 after Tuesday’s $17.01 and Monday’s $16.40, Friday’s $13.32 and last Thursday’s $13.65 with a NEGATIVE -$0.05 or -0.26% aftermarket indication;
CRISPR Therapeutics (CRSP) closed down -$3.36 to $146.61 after Tuesday’s $149.97 and Monday’s $150.06, Friday’s $148.41 and last Thursday’s $154.26 with a POSITIVE +$1.39 or +0.95% aftermarket indication;
Global Blood Therapeutics (GBT) closed down -$2.26 to $42.60 after Tuesday’s $44.86, Monday’s $42.70, Friday’s $40.57 and last Thursday’s $40.78 with a POSITIVE +$0.15 or +0.35% aftermarket indication;
Ionis Pharmaceuticals (IONS) closed down -$1.69 to $49.79 after Tuesday’s $51.49, Monday’s $47.83, Friday’s $45.81 and last Thursday’s $46.38 with a POSITIVE +$1.00 or +2.01% aftermarket indication;
uniQure NV (QURE) closed down -$0.23 to $47.63 after Tuesday’s $47.86, Monday’s $46.43, Friday’s $47.80 and last Thursday’s $48.17 with a POSITIVE +$0.60 or +1.25% aftermarket indication;
Editas Medicine (EDIT) closed down -$0.94 to $63.99 after Tuesday’s $64.93, Monday’s $61.49, Friday’s $61.92 and last Thursday’s $66.84 with a NEGATIVE -$0.49 or -0.77% aftermarket indication;
Precigen (PGEN) closed up +$0.32 to $7.49 after Tuesday’s $7.17, Monday’s $9.23 Friday’s $8.27 and last Thursday’s $8.30 with a NEGATIVE -$0.09 or -1.20% aftermarket indication;
The BOTTOM LINE: Caution is STILL warranted; as I have been saying, “a storm is coming” – fiscal aid or stimulus is NOT the total answer, the market “has gotten ahead of its skis”.
Reiterating, “I am NOT always the naysayer as contrarian thinking that realizes foresight can perceive hidden opportunities and seize them at just the right moment.”
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.