January 31, 2022 7:56am

Last session “standing” for January as algorithms wait in reserve to “rule” a downslide in fear of upcoming earnings’ reporting

Pre-open indications: 1 BUY, 5 SELLs 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 DOWN -0.54% (-188 points), S&P futures are DOWN -0.38% (-17 points) and NASDAQ futures are UP +0.04% (+5 points)

 

Stock futures were lower and mixed in early morning trading on Monday, the last session of January

European stocks were higher as investors kept an eye on political developments between Russia and Ukraine as well as inflation data.

Asia-Pacific stocks were higher with Mainland China and South Korea’s markets are closed on Monday for the Lunar New Year eve with Hong Kong and Singapore are also set to close early on Monday.

 

Economic Data Docket: Chinese factory activity growth slowing in January. The country’s official manufacturing Purchasing Managers’ Index for January was at 50.1, just above the 50 level that separates growth from contraction. A private survey released over the weekend showed Chinese manufacturing activity contracting in January.

 

Henry’omics

Very interesting quote, “It’s a tug of war and volatility is like blood pressure. It’s elevated when you’re scared, anxious, nervous and uncertain,” said Sam Stovall, chief investment strategist at CFRA. The first stocks to get hit were the high-flying names that benefit from low interest rates, and then the sell-off spread to other growth and tech stocks before encompassing the entire market this month.” <CNBC>

For the week, the Dow was up 1.3%, the first positive week in four, the S&P 500 edged up 0.8% to 4,431 and the Nasdaq was flat to end the week.

The S&P is down 7%, while the Nasdaq is down 12% for the month of January

 

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

RegMed Investors’ (RMi) closing bell: “a daily reversal with a big positive sector close after a frustrating week for cell and gene therapy investors. Stocks are on track to close out the trading month on Monday” … https://www.regmedinvestors.com/articles/12277

Ebb and flow – January and Q1 to date:

  • 1 holiday, 1 neutral, 13 negative and 5 positive closes

 

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

Probabilities/ Potentials pre-open share pricing indication moves:

SELL into Strength:

Applied Genetic Technologies (AGTC) closed up +$0.33 to $1.90 after Thursday’s $1.57, Wednesday’s $1.66, Tuesday’s $1.69 and last Monday’s $1.60 with a positive +$0.05 or +2.63% pre-open indication.

CRISPR Therapeutics (CRSP) closed up (Friday) +$0.24 to $59.00 after Thursday’s -$3.08 to $58.76, Wednesday’s $61.84, Tuesday’s $62.54 and last Monday’s $60.26 with a positive +$1.00 or +1.69% pre-open indication.

Editas Medicine (EDIT) closed up +$0.01 to $17.43 after Thursday’s $17.41, Wednesday’s $17.81, Tuesday’s $18.23 and last Monday’s $18.48 with a negative -$0.03 or -0.17% pre-open indication.

Intellia Therapeutics (NTLA) closed up +$3.62 to $86.02 after Thursday’s -$2.82 to $82.40, Wednesday’s $85.22, Tuesday’s $84.77 and last Monday’s $88.21 with a positive +$0.24 or +0.28% pre-open indication.

Vericel (VCEL) closed up +$1.59 to $33.28 after Thursday’s -$1.28 to $31.69, Wednesday’s $32.97, Tuesday’s $33.60 and last Monday’s $33.93 with a positive +$0.71 or +2.13% pre-open indication.

 

BUY:

Sage Therapeutics (SAGE) closed up +$1.87 to $38.82 after Thursday’s $36.95, Wednesday’s $37.75, Tuesday’s $39.31 and last Monday’s $39.66 with a positive +$1.36 or +3.50% pre-open indication.

 

Pump and Promote:

Biostage (OTCQB: BSTG) closed up +$0.05 to $3.90 with 3,362 shares traded after Thursday’s +$0.24 to $3.85 with 10,073 shares traded, Wednesday’s -$0.00 with 7,796 shares traded, Tuesday’s +$0.31 with 2,794 shares traded and last Monday’s -$1.15 with 14.5 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?
  • Last week’s news re terminal death suit: The Court granted BSTG's motion for a 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:  Investors should remain cautious, but also prepare for new buying opportunities.

After several ups and downs, the Nasdaq closed with strong price gains Friday although volume fell slightly versus Thursday, so the index did not stage a “follow-through” session to confirm the new rally.

While some sector equities might offer various entry positions soon after Friday’s dramatic positive close; MY real question is what and which stock’s rise are sustainable?

Pay attention to volatility, most times the effect of dramatic upside moves after multiple downsides weekly “plays” could end-up being sold into strength – in my view.

Reiterating, “Our universe of cell and gene therapy equities isn't dead, but needs a transfusion to keep it on life support until stabilization.”

The Nasdaq advance-decline line continues to plunge, while the NYSE A/D line also looks woeful. Despite Thursday's negative reversal, the CBOE Volatility Index fell modestly, suggesting market fear hasn't peaked. <IBD>

Last week, Monday is the last full session of January,2022:

  • Friday closed positive with 30 incliners, 4 decliners and 1 acquired
  • Thursday closed negative with 2 incliners, 32 decliners and 1 acquired
  • Wednesday closed negative with 4 incliners, 29 decliners, 1 flat and 1 acquired
  • Tuesday closed negative with 14 incliners, 17 decliners, 3 flats and 1 acquired
  • Monday (1/24) closed positive with 24 incliners, 10 decliners and 1 acquired

The cell and gene therapy sector has been oversold for most of the month of January and as February starts so do earnings reporting – thus more declines are in-store.

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

I am NOT changing my position, “Brace for more choppiness as we move further into the month and the beginning of Q1/22 waiting for 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): To expresses my beliefs reflecting MY moral compass - I WAS there to experience and seee the decay of transparency and more; 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.