January 18, 2022 7:49am

The major indexes are closer to breaking down than breaking out; as I have stated, “it’s a short-term oriented sector especially pre-earning’s season” yet, BUYs and SELLs are opportunistic

Pre-open indications: 4 BUYs and 4 SELL

News: bluebird bio (BLUE -$0.11 pre-open) the US FDA has extended the review period for the biologics licensing applications (BLA) for its lentiviral vector gene therapies – betibeglogene autotemcel (beti-cel) for β-thalassemia and elivaldogene autotemcel (eli-cel) for cerebral adrenoleukodystrophy (CALD). The revised PDUFA goal dates for beti-cel and eli-cel are August 19, 2022 and September 16, 2022, respectively. Ionis Pharmaceuticals (IONS +$0.03 pre-open) its partner, Roche, is designing a new P2 trial to evaluate tominersen in Huntington's disease (HD). After halting dosing in the P3 GENERATION HD1 study, exploratory post-hoc analyses suggest tominersen may benefit younger adult patients with lower disease burden.

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 -0.72% (-253 points), S&P futures are DOWN -0.97% (-46 points) and NASDAQ futures are DOWN -1.61% (-251 points)

 

U.S. stock futures fell sharply Tuesday as traders braced for the latest batch of corporate earnings reports and as government bond yields hit Covid-era highs,

European stocks were lower for the same reasons,

Asia-Pacific stocks were also lower. The Bank of Japan left its short-term interest rate target unchanged at -0.1%, in line with market expectations, and raised its near-term inflation expectations.

 

Henry’omics:

The shortened trading week will feature bank fourth (4th) quarterly reports from 35 companies in the S&P 500.

The major indexes are not far from their Jan. 10th lows. Closing below those levels could spell the end of the pseudo -market rally, which is already under pressure. On the plus side, after a four (4) session sell-off in the previous week, the has given-up much ground last latest week.

 

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

RegMed Investors’ (RMi) closing bell: “a late session rebound, a bouncing sector rotates to close positive. Markets are closed on Monday’s public holiday in honor of Martin Luther King.” …  https://www.regmedinvestors.com/articles/12259

Ebb and flow – January and Q1 to date:

  • 1 holiday, 1 neutral, 6 negative and 3 positive closes

 

Companies in my headlights – It’s your decision; I provide an idea and context:

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

BUY:

Global Blood Therapeutics (GBT) closed up +$1.26 to $28.99 with a positive +$0.61 or +2.10% aftermarket (Friday) indication.

Fate Therapeutics (FATE) closed up +$1.08 to $43.28 after Thursday’s -$2.85 to $42.20, Wednesday’s -$2.49 to $45.05 with a positive +$0.75 or +1.11% pre-open indication.

 

BUY from SELL:

Editas Medicine (EDIT) closed up +$0.23 to $22.10 after Thursday’s -$1.63 to $21.87, Wednesday’s -$2.27 to $23.55, Tuesday’s +$0.07 to $25.75 and last Monday’s +$0.56 to $25.70 with a positive +$0.40 or +1.81% pre-open indication

CRISPR Therapeutics (CRSP) closed up +$1.37 to $67.77 after Thursday’s -$2.85 to $69.86, Tuesday’s +$3.62 to $72.71 and last Monday’s +$1.43 to $69.09, with a positive +$0.75 or +1.11% pre-open indication,

 

Maintaining SELL:

Intellia Therapeutics (NTLA) closed up +$2.02 to $91.37 after Thursday’s -$8.61 to $89.35 after Wednesday’s   -$7.28 to $97.96 after Tuesday’s +$1.01 to $105.24 with a negative -0.27 or -0.30% pre-open indication.

BioLife Solutions (BLFS) closed up +$0.24 to $30.84 with a negative -$0.84 or -2.72% aftermarket (Friday) indication.

bluebird bio (BLUE) closed Friday +$0.21 to $8.73 and has a negative -$0.11 or -1.36% <see above news in title>

Biostage (OTCQB: BSTG) closed flat at $4.60 after Thursday’s +$0.63 to $4.60, Wednesday’s +$0.77 to $3.97, Tuesday’s +$0.87 to $3.20 and last Monday’s -$0.03 to $2.33 with 2,076 shares traded. Is there a reason for the “pump and promote”; are they trying to reverse or convert the non-registered shares from the multiple overpriced private placement (without any valuation models) to register shares beginning a “raise” to protect/satisfy non-U.S. investors?

 

 

The BOTTOM LINE: Friday, the Nasdaq closed positive +86.94 points or +0.59%, my sector “choices or composite” closed positive close to the session’s end, the IBB (+0.65%) and IBB (+2.44%) closed positive.

However, the sector experienced a number of 52-week lows of which eight (8) popped to the upside above the lows.

The major averages are testing key support areas, though the Nasdaq has held its 200-day line so far.

It is crucial to pay attention to the next price action to confirm if the support will be broken with more weakness ahead or another trading range will be formed from here on to build up more causes for the next up move.

My composite of sector equities traded up on Friday after two (2) down, one 91) and one (10 neutral closes last week.

Although key support levels this past week were iffy; as the Nasdaq, which undercut its 200-day line again on Friday, led a partial rebound.

The cell and gene therapy sector is STILL treacherous to BUY and even SELL into …

There's also nothing wrong with staying “pat”, selling losers and buying a few potential “poppers” or saying in cash, waiting for real market strength.

Sector equities remained under pressure as earnings season is right around the corner.

I am NOT changing my position, “Brace for more choppiness as we move further into the month and the beginning of Q4/21 Q4 and end-of-year numbers”.

  • 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

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 FATE, CRS, securities referred to in this publication.