January 10, 2022 7:52am

Out on a limb and possibly early, I still want to BUY the 52-week lows; there’s risk in the cards and volatility in the pot

Pre-open indications: 9 BUYs and 2 SELL

What I provide is an intelligence daily. RMi outlines a daily bell weather of “indications” about what you need to know; it’s what could happen or materialize after the opening and what might happen during the session.

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 DOWN -0.19% (-70 points), S&P futures are DOWN -0.36% (-17 points) and NASDAQ futures are DOWN -0.84% (-135 points)

 

Stock futures were down and still falling early Monday

European stocks were choppy awaiting U.S. inflation data this week and fed “leanings”

Asia-Pacific markets traded mixed as investors kept an eye on the coronavirus pandemic and U.S. interest rates with Japan’s markets are closed for a public holiday.

 

Economic Data Docket: Key inflation data as well as a confirmation hearing for Fed Chair Powell. Earnings season also kicks off this week. Euro zone unemployment fell to 7.2% in November from 7.3% in October,

 

Henry’omics:

Investors readied for a big week that will include key inflation data as well as a confirmation hearing for Fed Chairman Powell.

As for ‘our’ cell and gene therapy and biotech – the JP Morgan healthcare Conference begins – virtually today (the old H&Q that actually happened)

Friday ended a rough first trading week of the year; with more volatility in Nasdaq listed stocks compared to the indexes.

Surging Treasury yields were the driving force, as a surprisingly hawkish Fed jobs report on Friday spurred selling in bonds. That slammed growth stock names and buoyed financials. Rising crude oil prices lifted energy stocks. <IBD>

 

If you didn’t remember what happen Friday night and the last session of 2021’s close, you won’t be prepared for today’s session:

RegMed Investors’ (RMi) closing bell: “a disappointing and turbulent session and with big misses in the first week of the New Year marked by confusing signals. More upon more volatility infected by fed policy while I continue to look for an investible bottom.” …  https://www.regmedinvestors.com/articles/12248

 

Ebb and flow:

  • January to date, 4 negative and 1 positive close

 

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:

Adverum Biotechnologies (ADVM) closed down -$0.05 5o $1.68 after Thursday’s flat at $1.73 with a positive +$0.02 or +1.19% pre-open indication after hitting a 52-week low of $1.67

Applied Genetic Technologies (AGTC) closed down again -$0.03 to $1.78 after Thursday’s -$0.02 to $1.81 with a positive +$0.10 or +5.62% after hitting a 52-week low of $1.80.

Editas Medicine (EDIT) closed up +$0.73 to $25.14 after Thursday’s -$0.19 to $24.41, Wednesday’s -$1.80 or -6.82% to $24.60, Tuesday’s -$1.23 to $26.40 and last Monday’s +$1.08 to $27.63 with a positive +$0.36 or +1.43% pre-open indication

Sangamo Therapeutics (SGMO) closed flat at $6.77 after Thursday’s down -$0.29 to $6.77 with a positive +$0.03 or +0.44% pre-open indication after hitting a 52-week low of $6.18

Global Blood Therapeutics (GBT) closed up +$0.22 to $28.63 after Thursday’s +$0.74 to $28.41 after Wednesday’s -$1.66 or -5.66% to $27.67, Tuesday’s $29.33 and Monday’s $30.46 with a positive +$0.07 or +0.24% pre-open indication

 

BUY:

Alnylam Pharmaceuticals (ALNY) closed down again -$2.87 to $148.13 after Thursday’s -$0.49 to $151.00, Wednesday’s -$10.14 or -6.14% to $155.09 and Tuesday’s -$8.68 or -4.99% to $165.23 with a positive +$1.85 or +1.25% pre-open indication.

Athersys (ATHX) closed down -0.0022 to $0.8724 with a positive +$0.04 or +4.13% pre-open indication as well as focus to get above $1.00 by its holders,

CRISPR Therapeutics (CRSP) closed up +$0.48 to $67.66 after Thursday’s -$1.83 to $67.18 with a +$0.34 or +0.50% pre-open indication,

Vericel (VCEL) closed -$1.96 to $36.448 after Thursday’s $38.44, Wednesday’s $38.44, Tuesday’s $40.38 and last Monday’s $41.07 with a positive +$0.02 or +0.05% preopen indication.

 

Maintaining SELL:

Biostage (OTCQB: BSTG) closed up +$0.03 to $2.36 with 300 shares traded after Thursday’s flat with 1,165 shares traded, Wednesday’s +$0.01 with 262 shares traded, Tuesday’s +$0.02 with 1626 shares traded and last Monday’s flat with 20 shares traded. Will the “pump and promote” i.e., stimulate BUYING volume? Notice how the shares traded with and without the manipulated share pricing by volume stimulation; just a “House of Cards”?

Cellectis SA (CLLS) closed down -$0.20 to $7.72 with a negative -$0.20 or -2.59% pre-open indication.

 

 

The BOTTOM LINE: The cell and gene therapy sector started last week with a solid gain; then took a deep dive <four (4) sessions> in the pool of oversold for the remainder of the week.

The Nasdaq did hold its December lows, barely. The small-cap Russell 2000, which finally got above its 200-day line on Jan. 4, retreated back below that key level. That reflects market breadth weakening again after a brief recovery at the end of 2021.

The sector is not yet in a correction, but the uptrend is “formulating” a rise but, still under increasing pressure. The sector needs to find “some sustainability support” – (say that three time) at buy points having experienced 52-week lows.

  • The “BUY” zone is still questionable but, there’s room for oversold movement
  • I am NOT changing my position, “Brace for more choppiness heading into the start of the year.”
  • I used to think negativity was a state of mind. Now, having watched for long enough, I have come to realize that negativity can be a character trait
  • The volatile nature of cell, gene and biotech stocks is a double-edged sword; these stocks can produce gains but, sustainability or lack thereof, has been a factor through 2021 that I believe will continue into 2022.

Boom or bust as many missed end-points incurring weighty losses if a drug trial fails to perform or comes to market without any following.

  • I say today what others won't, so you can do what others can't whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors

I still have a hang-up with investment bank target price rankings, they don’t take the daily, monthly, or even quarterly share pricing effects into consideration. Buy-side analysts work for funds that purchase or actively trade the securities they cover and even they have their lapses.

I have “lived” on both sides and “find’ that “big spikes are common in these markets but, they are usually short in duration.”

So, my bottom of the Bottom Line, Investors should be extremely cautious about adding any new exposure.

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.