December 9, 2021 7:54am

Especially a very weak aftermarket after the Nasdaq registered a third day of gains

Pre-open indication: SELL

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 DOWN -0.29% (-104 points), S&P futures are DOWN -0.30% (-14 points) and NASDAQ futures are DOWN -0.36% (-58 points)

 

U.S. stock index futures were lower in Thursday pre-open, after the major averages posted a third straight day of gains

European markets were also lower as the pan-European Stoxx 600 slipped fractionally

Asia-Pacific markets traded mixed with/on omicron Covid variant concerns.

 

Economic Data Docket: Weekly jobless claims data will be released at 8:30 a.m. Economists are expecting the number of first-time-filers to come in at 211,000.

 

Henry’omics:

Yesterday, was a calm session after several days of big moves in the major indexes as the Dow edged up 0.1%, the S&P 500 index climbed 0.3% and the Nasdaq advanced 0.6% while, the small-cap Russell 2000 popped 0.8%.

 

Note: Yesterday, equities got a boost after Pfizer (PFE) and BioNTech (BNTX) said that a booster dose of their vaccine provides a high level of protection against the new omicron variant.

 

If you didn’t remember what happen at Wednesday night’s close, you won’t be prepared for today’s session:

Wednesday’s evening’s recap: “cashing out beats being cashiered. A “show me the money” session” … https://www.regmedinvestors.com/articles/12217

Q4: December, 4 positive 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) Wednesday closed flat with 520 shares traded after Tuesday’s dropped -$0.20 with 2,980 shares traded after Monday closed up with 6,466 shares traded, Friday closed flat with 200 shares traded and last Thursday closed up +$0.07 with 3,527 shares traded.

  • What’s “scary” is a $71.1 m deficit without a clinical trial following an IND approval which is a 1 and ¾ year old; have they filed an annual report to the FDA
  • BSTG continues 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?
  • What is BSTG’s future after the rejection of the insurance claim for the terminal death suit which also entails the indemnification of Harvard Bioscience (HBIO)?
  • Another question, “Without the insurance, BSTG has to “front” the legal fees to fight the opposition lawyers who were not given the discovery documents requested resulting in a court sanction (which was later reversed).
  • The real question … what if they lose, WILL there be an issue of personal liability for those who run the company and for HBIO?

 

Probabilities versus aftermarket/pre-open share pricing indication moves:

  • Yesterday I stated SELL into Strength there’s going to be blood on the street; it’s coming, so be early – MAINTAIN my position:

 

The BOTTOM LINE: Right or wrong, I hope you sold into strength yesterday as new highs easily topped lows which I believe will enhance risk which should be followed by renewed selling.

Yesterday showed four (4) out-of-Five (5) session strong price gain

  • Wednesday closed with 24 up/7 downs, 3 flats and 1 acquired;
  • Tuesday closed with 29 up/4 downs, 1 flat and 1 acquired;
  • Monday closed with 25 up/9 down and 1 acquired;
  • Friday closed with 1 up/31 downs, 2 flats and 1 acquired;
  • Thursday closed with 26 ups/8 downs and 1 acquired;

Relatively lower volume got lower in four (4) of five (5) than the previous session.

  • Wednesday - Sector volume LOW with 5 of the 24-upside having higher than the 3-month average volume with LOW volume of 3 of 7-downside having higher than the 3-month average volume;
  • Tuesday - Sector volume INCREASED with 19 of the 29-upside having higher than the 3-month average volume with LOW volume of 1 of 4-downside having higher than the 3-month average volume;
  • Monday - Sector volume INCREASED with 8 of the 25-upside having higher than the 3-month average volume with LOW volume of 5 of 9-downside having higher than the 3-month average volume;
  • Friday - Sector volume INCREASED with 1 of the 1-upside having higher than the 3-month average volume with INCREASED volume of 19 of 31-downside having higher than the 3-month average volume;
  • Thursday - Sector volume INCREASED with 9 of the 26-upside having higher than the 3-month average volume with INCREASED volume of 5 of 8-downside having higher than the 3-month average volume;

A sector rally seems poised to fizzle either today or tomorrow, however, I jump the gun and rush-out of a bevy of names on Wednesday.

Be ready to scale even further back out quickly; remember, to risk-takers, caution is a better priced at a premium.

Don't just buy any stock on a follow-through day; after such sessions …  SELL … into strength and pricing indications – it’s still a game of chance.

I keep saying, 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!

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 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.