December 10, 2021 7:45am

Another very weak aftermarket, the big question will the consumer inflation report dramatically impact Friday’s session?

Pre-open indications: 3 dice throws and 1 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 UP +0.29% (+102 points), S&P futures are UP +0.36% (+17 points) and NASDAQ futures are UP +0.30% (+48 points)

 

Stock futures are slightly up on Friday as investors brace for an inflation report that is expected to show prices at their highest level in nearly 40 years,

European markets were barely moving as the pan-European Stoxx 600 hovered fractionally below the flatline reflecting concerns about the omicron Covid-19 variant

Asia-Pacific markets declined on covid and upcoming key inflation data

 

Economic Data Docket: inflation read-out, which could lead the Fed to hasten the taper of its $120-billion monthly bond-buying program. Economists expect a 0.7% gain for the month of November, which would translate to a year-over-year growth rate of 6.7%. If that is the case, it will mark the biggest move since June 1982. <CNBC>

  • The University of Michigan is also set to release consumer sentiment data

 

Henry’omics:

Indexes are rising slightly before the open after yesterday’s session gave up some ground Thursday.

Was Thursday just a pause or a shakeout before a strong year-end rally, or is this the start of something bigger?

 

Note: Height of my week, looking forward to watching the Army’s Black Knights play the Midshipmen in the annual Army-Navy game.

 

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

Thursday’s evening’s recap: “RegMed Investors’ (RMi) closing bell: what a difference a session makes. Luckily, I wrote “Sell into Strength” yesterday to “cash out beats being cashiered’ and, a “show me the money” session’ – it came true.” …  https://www.regmedinvestors.com/articles/12219

Q4: December, 3 negative and 4 positive 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) Thursday closed $0.00 with 26 shares traded following 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 and last Friday closed flat with 200 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:

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

Dice throws:

  • CRISP Therapeutics (CRSP) closed down _$3.95 with a +$0.65 or 0.86% pre-open indication,
  • Fate therapeutics (FATE) closed down -$2.71 with a positive +$0.20 or +0.38%
  • Sage therapeutics (SAGE) closed down -$1.47 with a positive +0.15 or +0.39%

 

The BOTTOM LINE: On Thursday, the sector fizzled dissolving with zero (0) upside and thirty-three (33) down slides.

It’s still a sector of attrition.

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.