January 21, 2022 7:53am

Yesterday’s bounce ended with another sharp market reversal even as various indicators suggest the sector is oversold

Pre-open indications: 1 Maintaining SELL, Probabilities pre-open share pricing indication BUYs: 6

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.

Only the facts …

Dow futures are DOWN -0.29% (-103 points), S&P futures are DOWN -0.56% (-25 points) and NASDAQ futures are DOWN -0.90% (-137 points)

 

U.S. stock index futures moved lower in early morning trading on Friday indicating further losses,

European markets fell sharply because of a global pullback for risk assets,

Asia-Pacific markets also tumbled as Japan’s inflation data was released, Australia fell and mainland China/Hong Kong stocks declined

 

Henry’omics

During yesterday’s trading, the Dow shed 313 points, or 0.89%; at one point during the session, the 30-stock benchmark was up more than 450 points. The S&P declined 1.1% after earlier advancing 1.53% while the Nasdaq ended the day with a loss of 1.3%, reversing a prior move of +2.1%.

The Dow and S&P 500 are on track for a third straight week of losses while the Nasdaq is down nearly 5% on the week, putting it on track for its fourth-straight losing week and largest weekly loss since Oct. 2020

 

Economic data Docket: exports sales due at 8:30 a.m. ET and the index of leading economic indicators out at 10 a.m.

 

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

RegMed Investors’ (RMi) closing bell: “finally, the oversold were appreciative until the lower reverse unfolded. Punitive algorithmic trading/selling in the final hours of trading sent the sector in a spiral” … https://www.regmedinvestors.com/articles/12265

Ebb and flow – January and Q1 to date:

  • 1 holiday, 1 neutral, 9 negative and 3 positive closes

 

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

Probabilities/ Potentials pre-open share pricing indication moves:

  • Precigen (PGEN)
  • Alnylam Pharmaceuticals (ALNY)
  • AxoGen (AXGN)
  • bluebird bio (BLUE)
  • Global Blood Therapeutics (GBT)
  • Regenxbio (RGNX)

Maintaining SELL:

Biostage (OTCQB: BSTG) closed up again +$0.20 with 3,941 shares traded after Wednesday’s +$0.25 to $4.00 with 1,516 shares traded, Tuesday’s -$0.85 to $3.75 and last Friday’s flat at $4.60.

  • First question, WHERE is the volume coming from?
  • 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 to “facilitate” an “equity raise” to protect/satisfy tired non-U.S. investors?

 

The BOTTOM LINE: The sector’s dive continued to hit new lows after a third (3rd) new low in a row.

The Nasdaq moved below its early October lows to its worst levels since June which corresponded to its highs back in February 2021.

It won't be surprising to see the sector try to bounce, it just might turn to the upside although minimally.

Sector leadership is struggling but, continue looking for a few Friday’s ups and more likely Monday’s upward motion.

Interesting correspondence … Wednesday’s 52-week lows:

  • Verastem Oncology (VSTM) hit a 52-week low of $1.60
  • bluebird bio (BLUE) hit a 52-week low of $7.77
  • Fate therapeutics (FATE) hit a 52-week low of $39.91
  • Editas Medicine (EDIT) hit a 52-week low of $19.68
  • Ultragenyx Pharmaceuticals (RARE) hit a 52-week low of $66.92

Versus Thursday’s 52-week lows:

  • Applied Genetic Technologies (AGTC) hit a 52-week low of $1.63
  • Verastem (VSTM) hit a 52-week low of $1.56
  • Precigen (PGEN) hit a 52-week low of $2.96
  • Regenxbio (RGNX) hit a 52-week low of $25.54
  • uniQure NV (QURE) hit a 52-week low of $18.33
  • Fate Therapeutics (FATE) hit a 52-week low of $38.50
  • Editas Medicine (EDIT) hit a 52-week low of $19.42
  • XBI hit a 52-week low of 92.42
  • IBB hit a 52-week low of 130.45

Reiterating, “Patience is key. Don't jump the gun, but don't walk away. As I have stated, the oversold usually “pop” after steady declines so, stay “pat”, buying a few decliners or staying in cash.”

One factor to the decline is earnings season 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.