December 22, 2021 7:43am

Sector stock’s rise, stock’s fall – forget the market, focus on the Christmas holiday coming

Pre-open indications: 4 SELLs into Strength and 2 BUY

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 +0.15% (+53 points), S&P futures are UP +0.06% (+3 points) and NASDAQ futures are DOWN -0.02% (-3 points)

 

Stock futures were fluctuating yet higher Wednesday morning monitoring the threat posed by the omicron Covid-19 variant,

European markets inched higher and a “ditto” re omicron,

Asia-Pacific markets were mostly higher as MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.32%.

 

Economic Data Docket: home purchases, existing home sales, GDP and consumer confidence numbers.

 

Henry’omics:

All three of the major averages rallied in regular trading, pushing their weekly gains into the green. The Dow added 560 points, or 1.6%. The S&P 500 rose 1.8% and the Nasdaq gained 2.4%. <CNBC>

The cell and gene therapy sector remains under pressure, making any new buys risky.

 

Note: The FDA is expected to approve the Merck (MRK) and Pfizer (PFE) Covid antiviral pills this week. The PFE antiviral in particular has shown strong success in reducing hospitalizations and deaths.

 

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

Tuesday’s evening’s recap: “the pricing tug-of-war continues. As I wrote this a.m., “Sector stock’s rise, stock’s fall – forget the sector and market, focus on the Christmas holiday coming” … https://www.regmedinvestors.com/articles/12236

Q4: December, 6 negative, 1 neutral and 8 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:

SELL into Strength if you haven’t already:

  • Fate Therapeutics (FATE) closed +$3.18– there is a negative -$1.30 or -2.05% aftermarket indication
  • bluebird bio (BLUE) closed +$0.87 – there is a -$0.58 or -5.01% aftermarket indication
  • Vericel (VCEL) closed +$1.55 – there is NO aftermarket indication

Never forget: Biostage (OTCQB: BSTG) closed down -$0.49 with 4,582 shares traded after Monday’s +$0.53 with 425 shares traded, Friday’s -$0.37 with 5,700 shares traded, Thursday’s flat $0.00 with 371 shares traded and Wednesday closed -$0.00 with 3,281 shares traded. Notice how the shares traded with and without the manipulated share pricing by volume stimulation.

BUY:

  • Intellia Therapeutics (NTLA) closed +$2.54 – there is a positive +$0.49 or +0.39% pre-open indication
  • ReNeuron (RENE.L) will open +$3.10% or +3.97%

 

The BOTTOM LINE: Brace for more choppiness heading into the end and start of the year.

Big spikes are common in these markets but, they are usually short in duration.

The sector needs to build real momentum; not, just respond to fluctuating sessions algorithms driven.

Investors should be extremely cautious about adding any new exposure.

Relative winners in bad markets are usually still absolute losers.

An up-tight market correction sends a clear signal and I’m maintaining a “get out of Dodge” position re sector equities.

The cell and gene therapy sector has a downside bias and is dangerous “plot; to “play” in. It's an environment that lures investors in, only to sell off sharply again.

During extended periods of volatility and weakness, it's best to avoid most breakouts, unless it's a perfect set up and breakout. The alternating selling sessions in the sector should give you pause. I

If you want to buy, focus only on stocks showing exceptional fundamental and technical strength.

The risk level is very elevated at this point and there's no need to rush back into the market.

It's perfectly acceptable to watch from the sidelines and wait for the market to prove itself amid the recent losses.

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.