January 27, 2022 8:02am

Volatile with wild intraday swings

Pre-open indications: a hands-off session, let your portfolio “ride” with 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 DOWN -0.24% (-9 points), S&P futures are DOWN -0.05% (-1.25 points) and NASDAQ futures are UP +0.26% (+37 points)

 

U.S. stock futures traded mixed as Dow and S&P fell expressing volatility indicating a sharply lower open Thursday morning,

European markets were choppy reacting to the latest monetary policy decision from the U.S. Fed monetary policy changes,

Asia-Pacific markets fell across the board

 

Henry’omics

The stock market erased gains as Fed chief Powell signaled rate hikes and balance sheet cuts.

  • Asset purchases will wind down in early March, as planned, despite some speculation that bond buys could end in February.

Even at session highs, none of the major indexes has even approached the 10-day moving average.

 

Economic data Docket: Q4 GDP, durable goods orders and weekly jobless claims due at 8:30 a.m. ET. Economists expect the economy grew at a 5.5% annualized pace in the final three months of 2021. Jobless claims are expected to total 265,000 and durable goods are forecast to show a decline 0.6% in December.

 

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

RegMed Investors’ (RMi) closing bell: “I loved the smell of appreciation in the morning until the algorithms napalmed the cell and gene therapy sector. It had smelled of trading enthusiasm, but forgot the existential threats about investing” …  https://www.regmedinvestors.com/articles/12273

Ebb and flow – January and Q1 to date:

  • 1 holiday, 1 neutral, 12 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:

Pump and Promote:

Biostage (OTCQB: BSTG) closed down -$0.00 with 7,796 shares traded after Tuesday’s +$0.31 with 2,794 shares traded, Monday’s -$1.15 with 14.5 shares traded, and last Friday’s +$0.20 with 3,941 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?
  • Today’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 suit still HANGS over the company.

 

The BOTTOM LINE:  The sector in my view is on and showing its “butt” losing value due to unsustainable movements.

 We’re more than little downside down …

Will there be another attempt to relegate the oversold to being appreciative?

I think NOT as we are also headed into more trauma, as Q4 and FY21 earnings are being prepared for release. Prepare for some news to be generated

Still WAITING 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.

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.