April 16, 2021 7:44am
As I stated last night, “As all-time and intraday highs govern markets to which I say bye as the laws of gravity could come as a force”
Pre-open indications: 2 BUY, 7 SELLs and 1 Maintain SELL
Mentions: BLUE, BSTG, CRSP, FIXX, KDNY, EDIT, FIXX, IONS, NTLA, RARE, VCEL
My version of the morning’s “numbers” is written to be informative rather than just about changes to share pricing; it’s what happened or will materialize after the opening and what might happen during the session
My comments are important in trying to distinguish the temporary from real pricing progress.
Dow futures are UP +0.15% (+50 points), S&P futures are UP +0.10% (+5 points) and NASDAQ futures are UP +0.02% (+3 points)
Stock futures were up yet, still flying low in the pre-open on Friday,
European markets continued to rally after notching record highs the previous session,
Asia-Pacific edged higher as investors reacted to the release of Chinese economic data.
Data Docket: China’s gross domestic product surged 18.3% in the first three months of the year from a year ago, the country’s National Bureau of Statistics. That was slightly lower than expectations for a 19% increase, according to analysts. <Reuter>
During regular trading hours, the Dow rose 300 points (+0.90%) to top the 34,000 milestone amid blowout economic data. The S&P 500 +1.11%) and the Nasdaq gained +1.31%.
A too good high that’s questionable about new highs, “investor sentiment was boosted by economic data (Retail sales jumped 9.8% in March as U.S. jobless claims dropped to the lowest level since March 2020) on Thursday that pointed to a rebound in consumer spending and the jobs market.”
Interesting Move: Prescience Point Capital Management, together with its affiliates, a research-focused, catalyst-driven investment firm, announced the nomination of four (4) highly qualified director candidates to the Board of Directors of MiMedx Group (MDXG). Prescience Point, a beneficial owner of approximately 8.1% of the outstanding shares of MDXG, believes that the best path forward for unlocking shareholder value is the addition of Mr. Eiad Asbahi, Mr. Alfred G. Merriweather, Ms. Charlotte E. Sibley, and Mr. William F. Spengler to the Board at the upcoming Annual Meeting of Shareholders (the "Annual Meeting"), scheduled to be held on May 27, 2021.
Thursday’s evening’s recap: “sector climbs again as all-time and intraday highs govern markets to which I say bye as the laws of gravity could come as a force” … https://www.regmedinvestors.com/articles/11868
- The Nasdaq closed UP +180.92 points (+1.31%);
- The IBB closed up +1.22% and XBI closed up +0.88%;
- Sector volume was LOW with 0 of the 18-upside having higher than the 3-month average volume with the volume of 1 of 16 downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -0.42 points or -2.47% at 16.57
- Thursday’s percentage (%) of the 18-upside were +0.33% (BLFS) to +13.68% (BSTG) while the 16-downside ranges from -0.22% (SAGE) to -8.81% (BCLI);
Q2/21 and April: 4 negative and 6 positive closes
- March: 10 positive, 12 negative and 1 neutral closes
- February: 9 positive, 10 negative closes and 1 holiday
- January: 10 positive, 9 negative closes and 1 holiday
Companies in my headlights – It’s your decision; I provide an idea and context:
Biostage (BSTG): Questions continue … Maintaining Sell
Biostage (BSTG) closed up +$0.16 to $1.33 with 224 shares traded after Wednesday’s +$0.06 to $1.17 with 2,011 shares traded, Tuesday’s -$0.06 to $1.11 with 1,165 shares traded, Monday’s -$0.08 to $1.17 with 3,631 shares traded and last Friday’s flat at $1.25 with 260 shares traded.
Question#1: WHERE is the next level of funding coming from, is it further warrant execution and the only cash generation for further funding? Will $1 million dollars left in the till last for another quarter?
MINORITY PUBLIC shareholders are waiting, watching and weighing responses to MAINTAIN their RIGHTS.
SELL on a potential decline:
bluebird bio (BLUE) closed up +$0.18 to $29.72 with a negative -$0.51 or -1.72% aftermarket indication.
Chinook Therapeutics (KDNY) closed up +$1.44 to $15.24 with a negative 0.14 or -0.92% aftermarket indication.
Editas Medicine (EDIT) closed down -$0.55 to $40.98 with a negative -$0.43 or -1.05% aftermarket indication.
Ionis Pharmaceuticals (IONS) closed down -$0.80 to $41.03 with a negative -$0.13 or -0.32% aftermarket indication.
Intellia Therapeutics (NTLA) closed down -$1.58 to $74.77 with a negative -$0.75 or -1% aftermarket indication.
Ultragenyx (RARE) closed up +$1.61 to $109.58 with a positive +4.42 or +4.03% aftermarket indication.
Homology Medicine (FIXX) closed down -$0.19 to $7.03 after Wednesday’s +$0.04 to $7.22, Tuesday’s $7.18, Monday’s $7.17 and last Friday’s $7.32 with a positive +$0.32 or +4.55% aftermarket indication.
Maintaining SELL into Strength – take some profit:
CRISPR Therapeutics (CRSP) closed up +$0.74 to $123.85 after Wednesday’s +$2.23 to $123.11, Tuesday’s +$6.49 to $120.88 after Monday’s -$1.35 to $114.39 and last Friday’s -$4.64 to $115. with a positive +$0.15 or +0.12% aftermarket indication.
Vericel (VCEL) closed up +$0.92 to $57.98 after Wednesday’s +$0.46 to $57.06, Tuesday’s -$1.58 to $56.60, Monday’s +$0.41 to $58.18 and last Friday’s -$2.05 to $57.77 with NO aftermarket indication; but an Icarus flight pattern.
The BOTTOM LINE: as I had stated last night (Thursday), “I am NOT buying into sustainability … I have been wrong yet, I have been righter, more often as mini-rotations have made the sector rally challenging, despite the 3-session uptrend.”
For the past three (3) sessions, the XBI is up +$4.99% and the IBB +4.50% - so, I am projecting some downside action!
Volatility boosted by see-sawing sentiment seems brought-about by electronic trading versus investing.
Reiterating, “Momentum is fragmented, volatility exceeds volume and we shouldn’t base our buying or selling positions in this climate on prospects that have lately gone unfulfilled!”
I’m STILL a “beware or the cautious man” whose focus has always been “warning analysis” … my advice, trim and skim any new highs if one can!”
Welcome to my world of defining the “grey’ in our universe!
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.