January 8, 2021 8:03am

it’s time to take some profit off the table from a sprinting sector and run-away market

Pre-open indication: 10 SELLs and 0 BUYs

News:  UK regulator approves Moderna (MRNA) COVID-19 vaccine while REGENXBIO (RGNX) prices 4.26 million shares offering at $47.00

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

 

Where are the canaries in the sector coal mine, am I the only one?  Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  

Dow futures are UP +0.25% (+76 points), S&P futures are UP +0.34% (+13 points) and NASDAQ futures are UP +0.53% (+68 points)

 

Stock futures rose early Friday after as traders wait for the latest U.S. jobs report release.

European markets traded higher as global investors anticipate that a Democratic-controlled U.S. government will lead to greater fiscal support;

Asia-Pacific markets were mostly higher although a state of emergency was declared in Tokyo and three other areas on Thursday in a bid to combat a rise in coronavirus infections.

 

Data Docket: The Labor Department releases its monthly jobs report for December. Economists expect a meager gain of 50,000 jobs for the period, but some fear that the report could actually show a net loss of jobs after many areas reinstated economic restrictions to slow the spread of the pandemic. Also, to be released will be new data on wholesale inventories and consumer credit on Friday to better chart the path of economic recovery.

 

Henry’omics:

Markets have also reacted positively to Democrats winning two Georgia Senate runoffs, thereby advancing president-elect Biden’s future legislative agenda which will include increased spending and borrowing to support the economic recovery from the coronavirus pandemic.

Positive news on the Covid-19 vaccine indicated that the Pfizer (PFE) and BioNTech (BNTN) vaccine is effective against the new, highly-transmissible mutations of the virus found in the U.K. and South Africa.

Thursday’s session’s gains pushed the Nasdaq’s above 13 K and was also the first time the Dow cleared 31 K and S&P 500 finished above 3.8 K.

 

Thursday’s evening’s recap: RegMed Investors’ (RMi) closing bell: “sector pops in the bubble” … https://www.regmedinvestors.com/articles/11712

  • The Nasdaq closed UP +326.69 points (+2.56%);
  • The IBB closed up +3.04% and XBI closed up +4.11%
  • Sector volume INCREASED with 16 of the 31-upside having higher than the 3-month average volume with the increased volume of 1 of 2-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -2.70 points or -10.77% at 22.37;
  • Thursday’s percentage (%) of the 31-upside were +0.63% (PGEN) to +19.77% (SLDB) while the 2-downside ranges from -0.63% (CLBS) to -0.83% (BSTG);

January:

  • 4 positive closes, so far

 

Companies in my headlights – It’s your decision; I provide an idea and context:

Maintaining Sell:

Biostage (BSTG) closed down -$0.01 to $ +$0.06 to $1.21 with 366 shares traded after Tuesday’s -$0.10 to $1.15 with 11,943 shares traded, Monday’s flat at $1.25 with 2,652 shares traded and last Thursday’s +$0.04 to $1.15 with 5,491 shares traded.  Reiterating the questions …

  • Question#1: WHO is running this “zombie” company, is it really Hong Yu (president) and Shunfu Hu (VP of business development and operations)?
  • Question#2: WHAT is the relationship with … LIU Dong-hai of Dixintong Technology Group in China of which Jason Chen is a VP and also chairman of BSTG and DST Capital from Weston, Mass in funding the company especially with Mrs. bin Zhao?
  • Questio#3: HOW many times did Shunfu say to me – directly 20 or 30 times … that Beijing, China based LIU Dong-hai was the ULTIMATE AUTHORITY in BSTG’s future?

 

Aftermarket indications:

SELL into Strength:

Applied Genetic Technologies (AGTC) closed up +$0.43 or +10.02% to $4.72; its biggest move since 12/23/20 ($1.79) and a target having started 1/4 at $4.34 after 12/31’s $4.09;

Athersys (ATHX) closed up +$0.16 to $1.97; in three (3) sessions, ATHX has gained +$0.20 (+10.15%) upside having started ¼ at $1.75 and has a positive +$0.01 or +0.51% after market indication;

Cellectis SA (CLLS) closed up +$1.82 to $28.95 with a negative -$2.05 or -7.08% aftermarket indication;

Editas Medicine (EDIT) closed up +$9.12 or +11.32% to $89.66 after Wednesday’s +$3.70, Tuesday’s +$5.25 and Monday’s +$1.48 with a negative -$1.40 or -1.56% aftermarket indication;

FATE Therapeutics (FATE) closed up +$17.44 to $117.22 after Wednesday’s +$13.06 or +15.06 to $99.78 following a $85.59 priced offering of 4.42 million shares with $376 million of proceeds and has a negative -$0.72 0r -0.61% aftermarket indication;

Homology Medicine (FIXX) closed +$0.61 to $12.57 and has a positive +$0.41 or +3.26% aftermarket indication;

Intellia Therapeutics (NTLA) closed up +$10.74 or +16.09% to $77.48 after Wednesday’s +$5.73, Tuesday’s +$5.10 and Monday’s +$1.51 with a negative -$0.08 or -0.10% aftermarket indication and a +23.08 or +29.78% move in four (4) sessions;

Solid Biosciences (SLDB) closed up +$1.40 to $8.48 and has a negative -$2.08 or -24.53% aftermarket indication;

Verastem (VSTM) closed up +$0.12 to $2.34 and has a negative -$0.03 or -1.28% aftermarket indication;

 

The BOTTOM LINE: The newest of new market and sector highs scare me …

The stock market, I believe is in a bubble, as parts of it are on fire. Others say as I think it, “Life inside a stock market bubble is great until someone takes out a pin”.

Trouble is, no one knows when that will occur or to what extent. Short-term traders are as likely to pocket their gains as to lose their shirts. Indexers will face the fate of the markets — elation amid exuberance, despair amid the crash.  <Lawrence A. Cunningham, MarketWatch>

There are many times, I am early on my prognosis … as I see answers in number’s groupings!

Warnings are now being sounded about elevated valuations but it remains hard to walk away from such riches. Many plan to exit — just before the market corrects.

To reiterate, my soapbox is still in place as I re-emphasize volatility will remain elevated into the New Year.

 

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.