January 26, 2022 7:56am

As investors expect the “tone” of the Fed’s interest rate meeting

Pre-open indications: 3 BUYs and 1 pump/Promote

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 UP +0.93% (+318 points), S&P futures are UP +1.34% (+58 points) and NASDAQ futures are UP +1.89% (+268 points)

 

Stock futures rose Wednesday following another wild session

European markets were up in positive territory

Asia markets traded mixed as investors awaited the Fed statement

 

Henry’omics

The Dow ended down 66 points, or 0.2% having been down as much as 818.98 points on the session and briefly traded up by as much as 226.54 points after recovered from a 1,115-point deficit to post a slight gain. The S&P 500 closed down -1.2% while the Nasdaq also closed down -2.3%

 

Economic data Docket: The Fed announcement comes at 2 p.m. ET. International trade numbers are slated for release at 8:30 a.m. ET and new home sales data are set to come out at 10 a.m. ET.

 

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

RegMed Investors’ (RMi) closing bell: “wild volatility charges the slips and slides as the sector’s come-back collapses. Bouncing after sector and session lows, the roller coaster trading continues as the Fed's policy-setting meeting amid worries over fast-approaching rate hikes and the coming start to earnings season” …  https://www.regmedinvestors.com/articles/12271

Ebb and flow – January and Q1 to date:

  • 1 holiday, 1 neutral, 11 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:

BUY from SELL:

Global Blood Therapeutics (GBT) closed down -$0.83 to $26.83 after Monday’s +$1.12 to $27.66 and Friday’s -$0.25 to $26.54 with a positive +$1.04 or +3.88% pre-open indication.

CRISPR Therapeutics (CRSP) closed up +$2.28 to $62.54 after Monday’s -$2.35 to $60.26 and Friday’s -$1.75 to $62.61 with a positive +$2.46 or +3.93% pre-open indication

Intellia Therapeutics (NTLA) closed down -$3.44 to $84.77 after Monday’s +$6.69 to $88.21 after Friday’s -$1.10 to $81.52 with a positive +$2.11 or +2.49% pre-open indication,

 

Pump and Promote:

Biostage (OTCQB: BSTG) closed up +$0.31 with 2,794 shares traded after Monday’s -$1.15 with 14.5 shares traded, Friday’s +$0.20 with 3,941 shares traded and last Wednesday’s +$0.25 to $4.00 with 1,516 shares traded.

  • WHO is BUYING these shares of a company with a 2-year-old IND and NO clinical trial initiation?
  • Just another example of a game of “fake it because they can’t make it?
  • Overhang of non-registered PPM shares is also a factor before ANY offering to be proposed?
  • Yesterday’s news re terminal death suit: The Court granted BSTG's motion for preliminary injunction and held that Medmarc breached its duty to defend the Company when it unilaterally stopped paying for the defense. The Court expressly stated that Medmarc engaged in "unlawful conduct" by unilaterally terminating the defense. Although the coverage dispute remains pending between the parties, the Court held that "Medmarc will mostly likely lose its claim" seeking to terminate the payment of the defense, and therefore, it must continue to pay the defense until the coverage dispute is resolved.”
  • It’s NOT over, the lawsuit still HANGS over the company.

 

The BOTTOM LINE:  There be another attempt to relegate the oversold to being appreciative?

Even as we are head into market volatility, and Q4 and FY21 earnings are being prepared for release. Prepare for some news flow to start "rocking this sector.

Still WAITING for a follow-through day, when the major indexes post 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 with earnings anticipation and 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.

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.