December 16, 2021 8:00am
When I see a peak, I’d be selling upside with positive aftermarket indications
Remember, Quadruple Witching is on Friday, when options and futures on indexes and equities expire simultaneously.
Pre-open indications: 2 BUYs with news and 7 SELLs
News: Mesoblast (MESO +$0.58 pre-open) has received feedback from the US FDA Office of Tissues and Advanced Therapies (OTAT) on the P3 program of rexlemestrocel-L in patients with chronic low back pain (CLBP) due to degenerative disc disease (DDD) refractory to available therapies, including opioids. uniQure N.V. (QURE announced initial observations on the first four patients enrolled in the lower-dose cohort of its ongoing P1/2 clinical trial of AMT-130 for the treatment of Huntington’s disease.
If you’re looking for sector intel, ideas and facts or Insight in a volatile climate, RMi defines the extenuating factors of share pricing! I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”
Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session.
Dow futures are UP +0.63% (+226 points), S&P futures are UP +0.71% (+34 points) and NASDAQ futures are UP +0.72% (+117 points)
U.S. stock futures raced higher in pre-market trade on Thursday as the Fed begins to focus on winding down asset purchases,
European stocks soared following the U.S. Fed’s decision accelerate the reduction of its monthly bond purchases,
Asia-Pacific markets were mixed as investors measured the Fed news.
Economic Data Docket: housing starts and jobless claims at 8:30 a.m. EST.
Henry’omics:
Sector equities traded in negative territory throughout then flipped positive Wednesday just ahead of Fed chair Powell’s press conference at the conclusion of the two-day meeting.
“Once again, it's not the news, it's the reaction to the news. The Fed was slightly more hawkish than expected, but investors quickly bought up stocks. Why? Maybe investors were preparing for something worse. Maybe many traders are happy to see the Fed take stronger action vs. inflation. But "what" matters a lot more than "why." <IBD>
If you didn’t remember what happen at Tuesday night’s close, you won’t be prepared for today’s session:
Wednesday’s evening’s recap: “back in the upside/positive zone from one session extreme to another, check the advance/decline lines” … https://www.regmedinvestors.com/articles/12228
Q4: December, 5 negative and 6 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 ...
Probabilities versus aftermarket/pre-open share pricing indication moves:
Maintaining BUY: with news …
Mesoblast (MESO) closed up +$0.80 to $4.97 after Tuesday’s -$1.59 to $4.17 after Monday’s -$0.40 to $5.76 and has a positive +$0.58 or +11.67%, a day after news of FDA Office of Tissues and Advanced Therapies (OTAT) on the Phase 3 program of rexlemestrocel-L in patients with chronic low back pain (CLBP) due to degenerative disc disease (DDD) refractory to available therapies, including opioids and NVS terminated their collaboration early.
uniQure N.V. (QURE)
SELL into Strength: closed up +$0.63 to $28.75 with NO pre-market indication having announced initial observations on the first four patients enrolled in the lower-dose cohort of its ongoing P1/2 clinical trial of AMT-130 for the treatment of Huntington’s disease.
SELL into Strength:
Fate Therapeutics (FATE) closed up +$4.50 to $54.67 after Tuesday’s +$1.19 to $50.17 with a NO pre-market indication.
Global Blood Therapeutics (GBT) closed up +$3.30 to $28.20 after its PP went through after Tuesday’s -$4.16 to $24.90, Monday’s +$1.47 to $29.06 and last Friday’s -$1.36 to $27.59 with a negative -$0.20 or -0.71% pre-open indication.
Intellia Therapeutics (NTLA) closed up +$7.03 to $122.30 after Tuesday’s +$1.02 to $115.27, Monday’s +$0.24 to $114.25 and Friday’s +$1.96 to $114.01 with a positive +$0.70 or +0.57% pre-open indication
CRISPR Therapeutics (CRSP) closed up +$4.28 to $78.87 after Tuesday’s -$0.64 to $28.62, Monday’s $29.26 and has a positive +$0.73 or +0.93% pre-market indication.
Solid Biosciences (SLDB) closed up +$0.08 to $1.85 after Tuesday’s $1.77, Monday’s $1.78, Friday’s $1.76 and last Thursday’s $1.82 with NO pre-market indication.
Verastem (VSTM (VSTM) closed up +$0.10 to $2.36 after Tuesday’s $2.25, Monday’s $2.34, Friday’s $2.34 and last Thursday’s $2.44 with a negative -$0.09 or -3.81% pre-market indication.
Maintaining SELL:
Biostage (OTCQB: BSTG) Wednesday closed -$0.00 with 3,281 shares traded after Tuesday closed flat with 500 shares traded, Monday’s flat with 1 share traded, Friday closed up +$0.20 with 9,669 shares traded and last Thursday closed $0.00 with 26 shares traded. A serious case of manipulating share pricing by volume stimulation.
The BOTTOM LINE: Quadruple Witching is on Friday, when options and futures on indexes and equities expire simultaneously.
Investors should be taking a defensive approach – early i.e., today.
“The Fed meeting had been a major uncertainty for the stock market. The Fed decision turned out to be a tailwind, at least for one day. Before the Fed meeting announcement, investors were looking for the exits, if they weren't there already. But you have to be able to react quickly to changing market conditions, and not get stuck in a bullish or bearish mindset.” <IBD>
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 more than some strain for many weeks.
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 also consider taking further profits in winners, slashing strength gains, don’t sell into losses, they seem to bounce after depression.
I’m STILL a “beware or the cautious man” whose focus has always been “warning analysis”.
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.
