January 25, 2022 7:46am

Investors should stay cautiously on the sidelines after Monday’s tug-of-war between panic and fear

Pre-open indications: 8 SELLs

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 -0.67% (-230 points), S&P futures are DOWN -1.29% (-57 points) and NASDAQ futures are DOWN -1.86% (-268 points)

 

U.S. stock index futures fell sharply in early trading Tuesday,

European markets were higher as investors in the region appeared to shrug off volatility in global markets,

Asia-Pacific markets, Japan and Hong Kong stocks dropped as much as 2% as regional markets tumbled after a Monday’s volatile U.S. session.

 

Henry’omics

U.S. stock futures were falling in post-market trading Monday after equities staged a historic turnaround at the end of a whipsaw session wrought by heightened fears over rate hikes and a lackluster start to earnings season. Geopolitical tensions in the Ukraine also weighed on markets. <Yahoo/Finance>

One very bad vibe, factor, or indicator from Monday: The CBOE volatility index, or VIX, closed at about 29.90 after crossing above 37 in intraday trading, its highest level since November 2020.

 

Economic data Docket: The Federal Open Market Committee starts its two-day meeting at which it will decide on the next steps for U.S. monetary policy. An interest rate decision is slated for Wednesday at 2 p.m. ET.

 

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

RegMed Investors’ (RMi) closing bell: “panic sector selling and then a major comeback. The cell and gene therapy sector has been off to a rough start in 2022” …  https://www.regmedinvestors.com/articles/12269

Ebb and flow – January and Q1 to date:

  • 1 holiday, 1 neutral, 10 negative and 4 positive closes

 

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

Probabilities/ Potentials pre-open share pricing indication moves:

Maintaining SELL:

bluebird bio (BLUE) closed up +$0.47 to $7.71 with a negative -$0.05 or -0.65% pre-open indication

CRISPR Therapeutics (CRSP) closed down again -$2.35 to $60.26 after Friday’s -$1.75 to $62.61 with a negative -$2.26 or -3.75% pre-open indication

Global Blood Therapeutics (GBT) closed up +$1.12 to $27.66 after Friday’s -$0.25 to $26.54 with a negative -$1.66 or -6% pre-open indication.

Intellia Therapeutics (NTLA) closed up +$6.69 to $88.21 after Friday’s -$1.10 to $81.52 with a negative -$1.53 or -1.73% pre-open indication,

Ionis Pharmaceuticals (IONS) closed up +1.52 to $31.40 with a negative -$0.36 or -1.15% pre-open indication.

Biostage (OTCQB: BSTG) closed down -$1.15 with 14.5 shares traded after Friday’s +$0.20 with 3,941 shares traded, Wednesday’s +$0.25 to $4.00 with 1,516 shares traded and last Tuesday’s -$0.85 to $3.75.

  • First question, WHERE is the volume coming from, it certainly went out the session on Monday?
  • 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: interpreting the daily sector actions …

WAIT for a follow-through day, which is when a major index posts strong gains in volume heavier than the prior day.

The cell and gene therapy has been oversold for most of the month of January and as February starts so don’t earnings – thus more declines.

Investors should focus on forward-looking guidance, last year’s operating losses i.e., spending and cash positions or runways!

It won't be surprising to see the sector bounce lower, although some/few moves to the upside.

Monday’s 52-week lows:

  • IBB hit a 52-week low of 126.73
  • XBI hit a 52-week low of 87.11
  • Applied Genetic Technologies (AGTC) hit a 52-week low of $1.51
  • Ultragenyx Pharmaceuticals (RARE) hit a 52-week low of $65.55
  • Adverum Biotechnologies (ADVM) hit a 52-week low of $1.50
  • Pluristem (PSTI) hit a 52-week low of $1.49
  • Sangamo Therapeutics (SGMO) hit a 52-week low of $5.58
  • Regenxbio (RGNX) hit a 52-week low of $24.36
  • Verastem (VSTM) hit a 52-week low of $1.43
  • Solid BioSciences (SLDB) hit a 52-week low of $1.22
  • Fate Therapeutics (FATE) hit a 52-week low of $36.07
  • uniQure NV (QURE) hit a 52-week low of $17.71
  • Precigen (PGEN) hit a 52-week low of $2.75
  • Homology Medicine (FIXX hit a 52-week low of $3.31
  • Cellectis SA (CLLS) hit a 52-week low of $6.50
  • Editas Medicine (EDIT) hit a 52-week low of $17.60

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.”

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 their 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.