December 21, 2020 7:48am
Pressured by worries over a new viral COVID-19 strain in the U.K.
Nine (9) out of fourteen (14) positive closes so far this month with eight (8) remaining
Pre-open indications: Watch-out below, sector equities …
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 DOWN -1.68% (-505 points), S&P futures are DOWN -1.99% (-74 points) and NASDAQ futures are DOWN -1.18% (-150 points)
Indexes are set to open lower Monday as enthusiasm over a coronavirus stimulus deal was stunned by worries over a viral new COVID-19 strain in the U.K.;
European markets plunged as a fast-spreading new variant of the coronavirus has shut down much of the U.K.;
- This new strain will complicate Brexit talks as Britain and the European Union remain in a deadlock over post-Brexit trade relations as a Dec. 31 deadline looms.
Asia-Pacific stocks mixed; The coronavirus situation in parts of Japan and South Korea remain severe while China on Monday kept its benchmark lending rate unchanged.
- Moderna’s (MRNA) roll-out of vaccines are being loaded and delivered approaching 11 million doses administered;
- Lawmakers have reached an agreement on a $900 billion relief package, which would provide direct payments and jobless aid to struggling Americans.
- Markets are nervous, seeing a bumpy picture of the road to December 31 especially concerning the possibilities of rationed care if infected;
- Many want to escape the last weeks of the year, hopefully early – thus investors could experience a profit-taking “spasm”.
Friday’s night’s recap: RegMed Investors’ (RMi) closing bell:” sector stiffens with dramatic volume as indexes drop. Massive volume as many had to “cover” positions on Friday as quadruple witching, when options and futures on indexes and equities expire with fiscal aid a.k.a. stimulus negotiations still on-going”
- The Nasdaq closed DOWN -9.11 points (-0.07%);
- The IBB closed up +0.43% and XBI closed up +0.61%
- Sector volume GROSSED UP with 21 of the 21-upside having higher than the 3-month average volume with the increased volume of 9 of 11-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -0.36 points or -1.64% at 21.57;
- Friday’s percentage (%) of the 21-upside were +0.16% (PSTI) to +17.58% (PGEN) while the 11-downside ranges from -0.09% (BLUE) to -31.69% (MESO);
- Q4’s December, so far: 2 neutral, 3 negative and 9 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 -$0.12 to $1.36 with 110 shares traded after Thursday’s +$0.08 to $1.48 with 3,593 shares traded, Wednesday’s -$0.0285 to $1.39 with 786 shares traded, Tuesday’s +$0.06 to $1.42 with 3,122 shares traded and last Monday’s +$0.01 to $1.36 with 545 shares traded.
- Question#1: WHAT is DST Capital’s connection with Dixintong Technology Group, whose parent company, D. Phone, is one of the largest smartphone retailers in China and its chairman, LIU Dong-hai?
- Question#2: WHAT is the relationship between Mrs. bin Zhao of DST Capital, the capital funder of Biostage and chairman, LIU Dong-hai of Dixintong Technology Group?
- Question#3: WHY does Dixintong Technology Group need a regenerative medicine/biotech public, debtor and money loosing company in its investment group that resides in the middle of scientific innovation in America? – isn’t that CONTRARY to Chinese law?
- Question#4: Is there another reason to funnel foreign national monies to this entity that has yet to initiate a clinical trial?
… Watch-out below, as some sector equities experience declines … profit taking or just plain exits?
The BOTTOM LINE: As I have been saying, investors should have locked in profits after the spotty record of recent highs. There is encouraging news this morning, although it’s being overshadowed (for now) by the gloomy headlines out of the U.K. as U.S. lawmakers have reached an agreement on a “coming” $900 billion relief package, and vaccinations have begun in phases.
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.