June 25, 2021 7:38am

When algorithms bite, portfolios never see its coming; as the Russell rebalances, the June changes reflect representation of the index

Pre-open indications: 2 BUYs: ALNY, GBT; 5 SELLs into Strength: AGTC, EDIT, NTLA, CRSP, FATE; 2 Maintain SELL: BSTG, CLLS

My version of the morning’s “indications” is about what you need to know; it’s what could happen or materialize after the opening and what might happen during the session

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Dow futures are UP +0.30% (+101 points), S&P futures are UP +0.11% (+5 point) and NASDAQ futures are UP +0.13% (+18 points)

 

U.S. stock futures pointed to a modest yet higher open,

European stocks were flatlining

Asia-Pacific stocks were up led by Hong Kong’s Hang Seng index and mainland China.

 

Henry’omics:

The Dow is up 2.7% this week, the S&P 500 has risen 2.4% and the Nasdaq is up 2.4% since Monday.

 

Data Docket: inflation indicator when the Commerce Department releases the core personal consumption expenditures index. Economists are expecting prices rose 3.4% in May from a year earlier. Economists also estimate prices increased by 0.6% from April to May.

 

RegMed/Cell and Gene Therapy Earnings Scorecard Q1/21 LPS Results to date …  https://www.regmedinvestors.com/articles/11628

 

Thursday’s evening’s recap: “Advance/Decline (A/D) line leaps as mixed volume helps volatility” … https://www.regmedinvestors.com/articles/11971

  • The Nasdaq closed UP +97.98 points (0.69%);
  • The IBB closed down -0.79% and XBI closed up +2.22%;
  • Sector volume was LOW with 8 of the 28-upside having higher than the 3-month average volume with HIGH volume of 4 of 5-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.35 points or -2.14% at 15.97;
  • Thursday’s percentage (%) of the 28-upside were +0.45% (MDXG) to +8.06% (EDIT) while the 5-downside ranges from -0.12% (BLUE) to -4.78% (RENE.L);

Q2/21:

June: 12 positive and 6 negative closes

May:  8 positive, 12 negative closes and 1 holiday

April: 11 negative and 10 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:

The Biostage (BSTG) - Maintaining Sell – It’s about saying WHAT NEEDS to be written …

Biostage (BSTG) closed up +$0.10 to $1.35 with 1,920 shares traded after Wednesday’s -$0.05 to $1.25 with 11,915 shares traded, Tuesday’s +$0.09 to $1.30 with 4,779 shares traded, Monday’s flat at $1.21 with 572 shares traded and last Friday with 333 shares traded. Is BSTG just building the share price for the annual meeting and WHAT role is DST Capital “playing” in these on-going pricing “moves”?

Question#1: The REAL question to be ANSWERED is WHO is advising them in ALL of these endeavors and was has been the effect and did/has affected conditions within the company and past issues that STILL remain UNRESOLVED?

MINORITY PUBLIC shareholders are waiting for the specific time, watching and weighing responses to MAINTAIN their RIGHTS.

 

The morning’s indications:

Maintaining BUY:

Alnylam Pharmaceuticals (ALNY) closed down -$0.95 to $173.68 after Wednesday’s +$1.68 to $174.63 after the U.S. FDA has accepted the New Drug Application (NDA) for vutrisiran and has a positive +$1.32 or +0.76% aftermarket indication.

Global Blood Therapeutics (GBT) closed up +$0.76 to $36.44 after Wednesday’s $35.68, Tuesday’s $36.02, Monday’s $36.69 and last Friday’s $36.64 and has a positive +$0.36 or +0.99% aftermarket indication.

 

Maintaining SELL into Strength:

Applied Genetic Technologies (AGTC) closed up +$0.15 to $4.32 after Wednesday’s pre-open indication of +0.48 after news of 12-month data from its ongoing achromatopsia (ACHM) P1/2 clinical trials with a negative -$0.09 or -2.08% pre-market indication. AGTC has had a problem with share pricing sustainability.

Editas Medicine (EDIT) closed up +$3.05 to $40.87 after Wednesday’s +$0.1.41 to $37.82, Tuesday’s -$0.45 to $36.41 and Tuesday’s +$0.98 to $36.86 and has a positive +0.63 or +1.54% pre-market indication.

Intellia Therapeutics (NTLA) closed up +$3.25 to $86.84 after Wednesday’s +$4.68 to $83.59, Tuesday’s -$0.31 to $78.91 after Monday’s +$3.30 to $79.22 and has NO pre-market indication.

CRISPR Therapeutics (CRSP) closed up +$7.20 to $137.88 after Wednesday’s +$1.48 to $130.48 and has a positive +0.12 or +0.09% pre-market indication.

Fate Therapeutics (FATE) closed up +$1.31 to $84.84 after Wednesday’s +$2.11, Tuesday’s -$0.48 and Monday’s +$1.67 with NO pre-market indication.

 

Maintaining SELL:

Cellectis SA (CLLS) closed up +$0.69 to $15.49 after Wednesday’s +$0.19 to $14.80 after Tuesday’s +$0.10 to $14.61 after Tuesday’s -$0.34 to $14.51 and has NO pre-market indication.

 

The BOTTOM LINE: Maintaining my thesis … Cell and gene therapy sector equities are still flying foster by tailwinds however, headwinds and turbulence are ahead - investors should use rallies to book profits.

I also continue to MAINTAIN, this is a confused sector as sentiment rages and fades, momentum is usurped, fundamentals are being ignored.

When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started

A true contrarian thought …

My focus has always been “warning analysis” … my advice, trim and skim any new highs if one can!” I also see a number of lows that could be in the “pick-up” stock game.

My motto, never leave an investor uninformed about what I know!

 

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.