April 21, 2021 7:41am
Sentiment ruled by algorithms and electronic trading
Pre-open indications: 2 BUY, 6 SELLs and 1 Maintain SELL
Mentions: ADVM, BSTG, CRSP, EDIT, FATE, GBT, IONS, MESO, NTLA, 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 +0.07% (+23 points), S&P futures are UP +0.05% (+2 points) and NASDAQ futures are DOWN -0.12% (-17 points)
Futures were weak, mixed and barely moving on Wednesday as equities try to recover from two days of losses,
European stocks were higher,
Asia-Pacific stocks were mixed as a surge in coronavirus cases in countries like India weighs on the economic outlook and investor sentiment.
Data Docket: Last week was the first overall increase in weekly mortgage applications since the end of February. Applications to refinance a home loan jumped 10% for the week, but were still 23% lower a year ago. Total mortgage application volume surged 8.6% last week compared with the previous week.
Henry’omics:
Indexes suffered back-to-back losses leading the market lower amid renewed concerns about rising new Covid cases globally. The Dow fell (-0.75%) on Tuesday for its worst daily performance since March 23, while the S&P 500 (-0.07%) and the Nasdaq slid (-0.9%).
The Cboe Volatility Index or the “VIX” - the market’s fear gauge, rose for two (2) consecutive sessions, landing above 18 after hitting a 14-month low last week.
Tuesday’s evening’s recap: “another sell-off and downer for the sector; a second straight day of losses, while the Nasdaq dipped -0.9% as Biostage (BSTG) dived -$0.28 to $1.00” … https://www.regmedinvestors.com/articles/11874
- The Nasdaq closed DOWN -128.50 points (-0.92%);
- The IBB closed flat at 0.00% and XBI closed down -0.33%
- Sector volume was LOW with 2 of the 12-upside having higher than the 3-month average volume with the volume of 3 of 20 downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +1.39 points or +8.04% at 18.68;
- Tuesday’s percentage (%) of the 12-upside were +0.12% (NTLA) to +6.23% (PGEN) while the 20-downside ranges from -0.38% (RARE) to -21.87% (BSTG);
Q2/21 and April: 7 negative and 6 positive closes
Q1/21:
- 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 down -$0.28 to $1.00 with 6,816 shares traded after Monday’s -$0.06 (was down -$0.23 until minutes before the close) to $1.28 with 1,760 shares traded, Friday’s +$0.01 to $1.34 with 510 shares traded, Thursday’s +$0.16 to $1.33 with 224 shares traded and last Wednesday’s +$0.06 to $1.17 with 2,011 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.
Maintain SELL based on proxy filed:
Adverum Biotechnologies (ADVM) closed down -$0.04 to $8.92 with a negative -$0.31 or -3.48% aftermarket indication after Monday’s +$0.10 to $8.86 following a proxy being filed by the Sonic Fund II, L.P. with a letter to stockholders which … “Believes Board’s Abject Failure to Exert Sufficient Oversight of Management Has Led to Significant Stockholder Value Destruction and Must Be Immediately Addressed”. This will cost the company management time and money to address. I believe it will affect management’s ability to focus on its current duties.
SELL:
Editas Medicine (EDIT) closed up +$0.30 to $34.47after Monday’s -$0.50 to $34.17 and Friday’s -$6.31 to $34.67 with a negative -$0.07 or -0.20% aftermarket indication.
Fate Therapeutics (FATE) closed down -$1.47 to $78.18 after Monday’s -$1.52 to $79.65 with a negative -$0.16 or -0.39% aftermarket indication.
Maintaining SELL:
Global Blood Therapeutics (GBT) closed up +$0.47 to $41.27 after Monday’s -$0.01 to $40.80 with a negative -$0.07 or -0.17% aftermarket indication.
Intellia Therapeutics (NTLA) closed up +$0.08 to $67.41 after Monday’s -$3.12 to $67.33, Friday’s -$4.32 to $70.45 and Thursday’s -$1.58 to $74.77 with a negative -$1.91 or -2.83% aftermarket indication.
Vericel (VCEL) closed down -$1.31 to $53.46 after Monday’s -$3.85 to $54.77, Friday’s +$0.64 to $58.62, Thursday +$0.92 to $57.98 and last Wednesday’s +$0.46 to $57.06 with a negative -$0.81 or -1.52% aftermarket indication.
BUY:
CRISPR Therapeutics (CRSP) closed up +$6.63 to $121.67 after Monday’s -$3.52 to $115.04, Friday’s -$5.29 to $118.56, Thursdays +$0.74 to $123.85 and Wednesday’s +$2.23 to $123.11 with a positive +$2.33 or +1.92% pre-market indication.
Ionis Pharmaceuticals (IONS) closed up +$1.22 to $41.16 after Monday’s -$0.84 to $39.64, Friday’s -$0.25 to $40.78 and Thursday’s -$0.80 to $41.03 with a negative +$0.04 or +0.10% pre-market indication.
The BOTTOM LINE: Volatility boosted by see-sawing sentiment seems to be brought-about by algorithmic or electronic selling.
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.
