October 18, 2021 8:02am

Sector earnings or LPS (loss-per-share) will start around 10/28 – so caution is served

Pre-open indications: 4 SELLs into Strength and 2 BUYs with 1 Pump (or No Promote)

What I provide is an intelligence daily. RMi outlines the prelude to the daily dose of facts and objectivity! 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.

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 -0.34% ( -119 points), S&P futures are down -0.30% ( -13.50 point) and NASDAQ futures are down -0.21% ( -32 point)

 

U.S. stock index futures are diving in early trading Monday,

European stocks pulled back as most sectors and major bourses fell into the red,

Asia-Pacific stocks were mostly lower as investors reacted to the release of key Chinese economic data that showed China’s GDP grew 4.9% in Q3. That was … below expectations of a +5.2% expansion.

 

Henry’omics:

A few things dented sentiment on Monday. Overnight, China reported GDP that disappointed, coming in at 4.9% annual growth in Q3. That was short of the 5.3% growth expected by economists. Industrial production in China last month also fell short of expectations. <Reuters>

And the 10-year Treasury yield climbed back above 1.61% to start the week. Rising rates have caused some pressure in tech shares at times this year as investors rotate out of growth stocks and into more value-oriented names. <CNBC>

Indexes are coming off a winning week due to strong earnings reports and results this week … could change if they follow the same trend.

 

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:

Q4: October, 6 positive and 5 negative closes

Q3/21:

  • September, 1 holiday, 10 positive and 10 negative close
  • August - 12 positive and 10 negative close
  • July: 6 positives, 1 holiday and 15 negative closes

 

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

SELL with a Pump or no promote:

Biostage (BSTG) closed down -$0.035 with 528 shares traded after Thursday’s flat at $3.13 with 22 shares traded after Wednesday’s +$0.09 with 3,492 shares traded – WOW after Tuesday’s -$0.20 to $3.01 with 614 shares traded after Monday’s flat. For a company with NO clinical trial, an a one (1) and a half year approved IND, four (4) employees and NO CRO <clinical research organization> initiation. What’s there to invest in – the “Sword of Damocles” hanging over its recent insurance company rejection of legal expense/costs of a terminal death suit against the company?

 

Sell into Strength:

bluebird bio (BLUE) closed up on Friday +$0.78 to $20.90 and is floating down -$0.25 or -1.205 pre-open indication,

Alnylam Pharmaceuticals (ALNY) closed up again +$4.67 to +$208.56 after Thursday’s +$5.40 to $209.29, Wednesday’s +$0.45, Tuesday’s -$1.09 and last Monday’s +$0.83) with a negative -$3.56 or -1.71% pre-open indication.

Cellectis SA (CLLS) closed up again +$1.21 to $10.83 after Thursday’s +$1.08 to $10.70 and Wednesday’s +$0.47 to $9.62 with a negative -$0.39 or -3.60% pre-open indication.

 

BUY:

CRISPR Therapeutics (CRSP) closed up again +$0.23 to $97.00 after Thursday’s +$1.93 to $98.70, Wednesday’s -$5.82, Tuesday’s +$1.94 and last Monday’s +$2.02) with a positive +$0.99 or +1.02% pre-market indication.

Intellia Therapeutics (NTLA) closed down on Friday -$1.28 to $130.49 and has a positive +$0.91 or +0.70% pre-open indication.

 

The BOTTOM LINE:  New week and bank earnings will lead markets while stem, cell and gene therapy earnings will be beginning 10/28 Thursday with Alnylam Pharmaceuticals leading the releases (to date).

Theme is too much uncertainty, what’s more likely to me is skepticism …

Sector stocks have traded choppily over the past several weeks as investors contemplated the implications of ongoing price increases (i.e., inflation) against a backdrop of decelerating economic growth.

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.