September 20, 2021 7:56am
The oversold versus the overbought brought-on by electronic trading
The Cboe Volatility index, the dreaded fear gauge, jumped above the 25 level on Monday, the highest since May.
News: Verastem Oncology (VSTM +$0.68 in pre-market) announced a clinical collaboration agreement with Amgen (AMGN) to evaluate the combination of VS-6766, Verastem Oncology’s investigational dual RAF/MEK inhibitor, with Amgen’s KRAS G12C inhibitor LUMAKRASTM (sotorasib) in KRAS G12C-mutant non-small cell lung cancer (NSCLC).
Pre-open indications: 1 BUY; 5 SELLs; Maintaining SELL: 1
What I provide is an intelligence daily. RMi outlines the prelude to the daily dose of facts and objectivity!
Remember that overnight and pre-open actions in futures doesn't necessarily translate into actual trading in the coming day’s session.
Dow futures are DOWN -1.86% (-640 points), S&P futures are DOWM -1.59% (-71 point) and NASDAQ futures are DOWN -1.46% (-223 point)
U.S. stock futures dived deep on Monday as investors continued to move through September amid multiple emerging risks (Fed, Covid, Asia sell-off or just lossy September market and I say White House geo-political missteps),
European stocks were lower as global markets contended with concerns over the U.S. Federal Reserve’s tapering timetable and fears surrounding embattled developer China Evergrande Group,
Asia-Pacific markets were hamstrung by embattled Chinese developer China Evergrande Group shares continuing to drop. Markets in mainland China, Japan and South Korea were closed on Monday for holidays.
Data Docket: Fed Chair Jerome Powell will hold a press conference Wednesday at the conclusion of the two-day meeting. Powell has said the so-called tapering could occur this year, but investors are waiting for more specifics, particularly after mixed economic data released since Powell’s last comments. <CNBC>
Henry’omics:
A crash has been accepted as … coming, is it here now?
Verastem Oncology (VSTM News continued): The Phase 1/2 trial will evaluate the safety, tolerability and efficacy of VS-6766 in combination with LUMAKRASTM in patients with KRAS G12C-mutant NSCLC who have not been previously treated with a KRAS G12C inhibitor as well as in patients who have progressed on a KRAS G12C inhibitor. The study will therefore investigate the potential benefits of a more complete vertical blockade of the RAS pathway with the combination of VS-6766 (RAF/MEK blockade) with LUMAKRASTM (G12C inhibition) in KRAS G12C-mutant locally advanced or metastatic NSCLC.
If you didn’t remember what happen at Friday night’s close and the quarter’s “number’s” impact, you won’t be prepared for today’s session:
- Friday’s evening’s recap: “cell and gene therapy sector rebounds from the quadruple witching swallowing fear. Even as volatility jumps +11.34%” … https://www.regmedinvestors.com/articles/12100 .... read it to validate Monday's happenings!!
Q3/21:
- September, 1 holiday, 6 positive and 6 negative close
- August - 12 positive and 10 negative close
- July: 6 positives, 1 holiday and 15 negative closes
Q2/21 Earnings releases … https://www.regmedinvestors.com/articles/11542 … to date:
Applied Genetic technologies (AGTC) – reports Thursday, 9/23
Companies in my headlights – It’s your decision; I provide an idea and context:
Maintaining SELL:
Biostage (BSTG) isn't "pumping/promoting" the share price -- FRAUD?
BUY:
Verastem Oncology (VSTM) closed up +$0.06 (Friday) and gas a positive +$0.63 or +22.82% pre-market indication on news (above),
SELL:
CRISP Therapeutics (CRSP) closed up +$7.10 to $124.52 and has a negative -$4.44 or -3.57% pre-market indication.
Editas medicine (EDIT) closed up +$2.20 to $63.20 and has a negative -$2.26 or -3.58% pre-open indication,
Intellia Therapeutics (NTLA) was up +$3.44 to $157.29 and has a negative -$5.29 or 3.36% pre-open indication,
Fate therapeutics (FATE) closed up +$5.09 to $71.60 but has a negative -$1.40 or -1.96% pre-market indication,
The BOTTOM LINE: Markets has found something scarier than tapering, taxes, and China Evergrande Group combined.
I read somewhere, it’s called the 50-day moving average.
“The predictions of impending doom from talking heads continued this past week. The reasons for a pullback are many: The stock market has rallied for too long and has gone up too smoothly, the Federal Reserve is about to remove the bond buying that has helped prop markets up, taxes are ready to rise, economic data are slowing. None of it really left a mark.”
Not yielding, I keep reinforcing the theme that increased stock market volatility suppresses the stem, cell and gene therapy sector.
I maintain, the recent stem, cell and gene therapy sector investors should be a bit more defensive, limiting new buys and perhaps curtailing overexposure.
Theme is uncertainty, more likely to me: skepticism …
RMi’s daily report is a primer that may say little or a lot; yet it serves as insurance that all indications are being examined and evaluated.
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.
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.
