December 7, 2021 6:59am
Keep your eyes on strength of appreciation along with the daily volume
Pre-open indications: 3 SELLs and 5 BUYs
News: Ionis Pharmaceuticals (IONS) has entered into a strategic collaboration agreement with AstraZeneca (AZN) to develop and commercialize eplontersen, Ionis' investigational antisense medicine for the treatment of transthyretin amyloidosis (ATTR).
If you’re looking for sector intel, ideas and facts or Insight in a volatile climate, RMi defines the extenuating factors of share pricing!
Remember that overnight and pre-open actions in futures doesn't necessarily translate into actual trading in the coming day’s session.
I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”
Dow futures are UP +1.04% (+367 points), S&P futures are UP +1.34% (+62 points) and NASDAQ futures are UP +1.81% (+287 points)
Stock futures are higher programming a solid open in Tuesday’s pre-market
European stocks climbed relating to the omicron Covid variant lessened virulence
Asia-Pacific stocks jumped on optimism that the omicron variant risk might not be as bad as feared
Henry’omics:
The stock market posted strong gains Monday, as the major stock indexes rebounded from Friday's weakness.
Dow futures rose 1.05% vs. fair value, while S&P 500 futures moved up 1.35%. And Nasdaq 100 futures gained 1.8%.
Note: GlaxoSmithKline (GSK +$0.38 or +0.91%) shares were higher following news that the drugmaker’s monoclonal antibodies treatment had shown effectiveness treating omicron.
If you didn’t remember what happen at Monday night’s close, you won’t be prepared for today’s session:
Monday’s evening’s recap: “welcome to the grind, where the sector rose and shone” … https://www.regmedinvestors.com/articles/12213
Q4: December, 2 negative and 2 negative closes
- November, 1 holiday 5 positive and 16 negative close to date
- October, 8 positive and 13 negative closes
Companies in my headlights – It’s your decision; I provide an idea and context:
Maintaining SELL:
Biostage (OTCQB: BSTG) Monday closed up with 6,466 shares traded after Friday closed flat with 200 shares traded after Thursday closed up +$0.07 with 3,527 shares traded after Wednesday closed up +$0.95 to $2.93 with 2,590 shares traded and last Tuesday’s -$0.02 with 2,143 shares traded.
- What’s “scary” is a $71.1 m deficit without a clinical trial beginning – don’t talk to me about papers; BSTG continue as a “going concern” which also REQUIRES additional funding for future operations.
- BIG question, are they going to have to “restate” their financials for past wo (2) years?
Probabilities versus aftermarket/pre-open share pricing indication moves:
SELL into Strength:
Mesoblast (MESO) closed up +$0.66 to $5.87 after Friday’s -$0.26 to $5.21 after Thursday’s $5.447, Wednesday’s $5.77, Tuesday’s $6.05 and last Monday’s $6.04 with a negative -$0.06 or -1.02% aftermarket indication
Weakness pervades:
Pluristem (PSTI) closed down again -$0.03 to $2.28 after Friday’s -$0.08 to $2.31, Thursday’s $2.39, Wednesday’s $2.49 and last Tuesday’s $2.71 with a negative -$0.82 or -3.57% aftermarket indication.
BUY from SELL:
Fate Therapeutics (FATE) closed down again -$0.16 to $47.84 after Friday’s -$4.60 to $8.00, Thursday’s $52.60, Wednesday’s $52.13 and last Tuesday’s $55.01 with a positive +$0.21 or +0.44% aftermarket indication
CRISPR Therapeutics (CRSP) closed up +$1.03 to $71.12 after Friday’s -$6.76 to $70.09, Thursday’s +$1.57 to $76.85 after Wednesday’s -$4.62 to $75.28 and last Tuesday’s +$1.92 to $79.90, with a positive +$0.58 or +0.82% pre-open indication.
Global Blood Therapeutics (GBT) closed up +$0.71 to $28.17 after Friday’s $27.46, Thursday’s $28.91, Wednesday’s $27.13 and last Tuesday’s $28.26 with a positive +$0.33 or +1.17% aftermarket indication.
Regenxbio (RGNX) closed up +$1.22 to $31.81 after Friday’s $30.59, Thursday’s $31.64, Wednesday’s $30.30 and last Tuesday’s $32.00 with a positive +$1.19 or +3.74% aftermarket indication.
Ionis Pharmaceuticals (IONS) closed up +$1.11 to $27.50 with new of entering into a strategic collaboration agreement with AstraZeneca to develop and commercialize eplontersen, Ionis' investigational antisense medicine for the treatment of transthyretin amyloidosis (ATTR) with a positive +$0.05 or +0.18% pre-open indication.
The BOTTOM LINE: The stem, cell and gene therapy sector posted strong gains Monday, after Friday’s drubbing.
One day doesn't make a trend...
However, no rally has ever begun without one, not every follow-through session prospers. That's why you don't want to jump back in the market 100% on a follow-through day. You want to start buying in stages and let the rally prove itself.
Don't just buy any stock on a follow-through day. Make sure you're buying into … solid indications whether aftermarket or pre-open – it’s still a game of chance but, better odds prevail.
Keep your eye on volume and the rate of incline to determine the probability of sustainability.
From my “early” days , I “was learned” to “watch my corners” – one never knew what could be coming at you!
I haven’t changed my December thoughts; risk appetites are waiting to take a cue what the new variant means – now in fifteen (15) states and thirty-eight (38) countries.
Let’s NOT forget that the stem, cell and gene therapy sector has been showing some strain for many weeks. The advance/decline lines deteriorated through-out November even as the Nasdaq kept hitting new highs.
I don’t believe the market and sector conditions are favorable in the very short-term. The risk of market-shaking headlines is very high, at least until there's greater understanding of the omicron variant, and what that might mean for the economy.
Investors should consider taking further profits in winners, slashing strength gains, don’t sell into losses, there seems to be always a bounce.
Take a more-defensive approach, cutting back exposure.
I’m STILL a “beware or the cautious man” whose focus has always been “warning analysis” … earnings’ season is NOT over … my advice, trim and skim any new highs if one can!”
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.
WHY do I keep reporting on Biostage (BSTG): When one sees an inextricable wrong and morally repulsive scenario; it takes courage, resolve and patience to stay the course of asking the questions without response!
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.
