April 25, 2022 7:56am
As the busiest week of non-sector earnings and an inflation warning by Friday the end of this month’s market action – no glory being sought
Pre-open indications: 2 Upside indications, 1 Downside indications and 1 Pimp/Pump/Promote
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.
Just the facts … I ask questions and note the indications of what could happen …
Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session.
Dow futures are DOWN -0.50% (-167 points), S&P futures are DOWN -0.67% (-28 points) and NASDAQ futures are DOWN -0.79% (-105 points) early in the pre-open - so far
U.S. stock futures fell on Monday amid a four-week losing streak for the Dow Jones Industrial Average as investors weighed the likelihood of rising interest rates,
European markets were abrupt and lower
Asia-Pacific markets fell sharply as mainland China led losses based on China’s worst outbreak of Covid
Henry’omics:
All the major indexes closed down lower last week, with the Dow falling 1.9%, its fourth straight weekly decline; the S&P 500 diving -2.8% and the Nasdaq -3.8% posting their third straight weekly decline.
Ending the month, this week “The personal consumer expenditures index is set to be released Friday before the bell. In February, the core PCE jumped 5.4%.”
Last Friday night’s RegMed Investors’ (RMi) closing bell post: “what happened today, another sector face plant in the mud. As sector’s advance/decline line suffers from anoxia, an absence of oxygen” … https://www.regmedinvestors.com/articles/12402
Ebb and flow –
Q2/22 –1 holiday, 4 positive and 11 negative closes
Q1/22:
· March – 13 negative and 10 positive closes
· February stats: 11 negative, 8 positive closes and 1 holiday
· January stats: 2 holidays, 1 neutral, 13 negative and 6 positive closes
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
Undervalued but, with upside indications:
AxoGen (AXGN) closed down -$0.33 to $7.28 with a positive +$0.36 or +4.95% pre-open indication
Editas Medicine (EDIT) closed up +$0.22 to $14.59 (52-week low of $13.25 and a high of $70.03) with a +$0.30 or +2.06% preopen indication,
Flipping to the downside:
CRISPR Therapeutics (CRSP) closed up +$0.15 to $56.68 with a negative -$0.92 or -1.65% pre-open indication,
Pimp/Pump and Promote:
Biostage (BSTG) closed up +$0.05 with 3,233 shares traded after Thursday’s +$0,90 with 771 shares traded, Wednesday’s -$0.48 to $5.50 with 1,131 shares traded, Tuesday’s +$0.48 with 1,168 shares traded and last Monday -$0.48 with 2,873 shares traded.
- WARNING: WHY BUY this equity with a 3-year-old IND, NO clinical trial initiation, a terminal death lawsuit overhang and a precarious financial position dependent on a possible cash infusion? Also, WHY the pump of the volume to gain share appreciation – they have to reverse the multiple private placements (the priciest was $4.71) for a potential/proposed stock offering.
The BOTTOM LINE: The cell and gene therapy sector tried to rally on Friday but then sold off enhancing a negative week of four (4) closing losses and one (1) positive close.
“Drugmakers and biotech suffered some notable losses this past week. Some still have decent charts, but Eli Lilly (LLY) has slumped for nine straight sessions to undercut buy points. Lilly earnings are due this coming week.” <IBD>
But the sharp weekly losses were enabled by the size of the sell-off from last Monday and Thursday lows.
As I have stated, “Weak aftermarkets, openings and even weaker closes are hallmarks of the cell and gene therapy sector.”
These recent, ugly market setbacks serve as a warning to investors to reduce exposure.
I try to keep it simple … and short!
To expect a payday; volatility and low volume are part of the equation which could set-up BUY/SELL opportunities.
Investors should consider taking at least partial profits quickly on winners to avoid round-tripping moves.
I am still, in the here and now, the cell and gene therapy sector will continue to “flutter”; we are about to enter the earnings’ zone!
Earnings’ season is upon us as Alnylam Pharmaceuticals (ALNY) reports Thursday, 4/28 followed so far by Sage Therapeutics (SAGE) on 5/3 and AxoGen (AXGN), Fate Therapeutics (FATE), Ionis Pharmaceuticals (IONS), MiMedx (MDXG) and Vericel (VCEL) on 5/4 so far.
Whether information or intelligence is good, bad or somewhere in between; 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.
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.
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 securities referred to in this publication.
