May 19, 2022 7:35am
External forces: rising inflation and higher interest rates have sparked sell-offs in risk equity assets
Investors have numerous reasons to be cautious … although I am attracted to 52-weeks even if “early”
Pre-open indications: 4 Positive Indications, 2 Negative Indications and 1 Puff/Pump/Promote
RMi outlines a daily bell ringing 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 -0.91% (-286 points), S&P futures are DOWN -0.96% (-37 points) and NASDAQ futures are DOWN -0.99% (118 points) early in the pre-open – so far,
Stock futures were lower and floating further down the river on Thursday,
European markets declined as global markets are also rattled by fears over rampant inflation.
Asia-Pacific markets fell sharply after the heavy losses in U.S. sessions.
Thursday is NOT going to be much better …
On Wednesday, the major indexes tumbled, giving up all of Tuesday's strong gains and much more.
“It’s a gloomy morning as stocks tumble pretty much everywhere on the planet”, wrote Adam Crisafulli of Vital Knowledge.
On Wednesday, the Dow fell more than 1,100 points, marking its worst sell-off in nearly two years. The S&P 500 also suffered its worst one-day decline since June 2020, losing about 4%, and the Nasdaq fell 4.7%. <CNBC>
Economic Data Docket: Initial jobless claims
RegMed Investors’ (RMi) closing bell: “Tuesday was a short-lived rally as sector equities plummet Wednesday. On-going elasticity reproduces resistance supported by the thorough lack of confidence and conviction. As I have been writing, “we are renting the upside” keep the lows in your minds-eye; the algorithmic “Pac-men” are lurking! One Tuesday session did NOT mark a sustainable rally; fear DOES forecast a sub-surface reality regarding sustainability.” … https://www.regmedinvestors.com/articles/12442
Ebb and flow –
May - 6 positive and 6 negative closes
· April - 1 holiday, 6 positive and 13 negative closes
· 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
RegMed Investors (RMi) - Q1/22 Cell and Gene Therapy Earnings Scorecard Results … https://www.regmedinvestors.com/articles/11628 -- added Brainstorm Cell Therapeutics (BCLI), Homology Medicine FIXX) and Biostage (BSTG)
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
Positive Upside Indication:
Chinook Therapeutics (KDNY) closed down -$1.16 to $12.59 <52-week low of $10.48> with a positive +$0.,16 or +1.27% pre-open upside indication
Vericel (VCEL) closed down -$1.84 to $26.88 <52-week low of $25.11> with a positive +$1.34 or +4.99%
Caribou Biosciences (CRBU) closed down -$0.55 to $9,12 <52-week low of $6.41> with a positive upside pre-open indication
Avrobio (AVRO) closed down -$0.07 to $0.75 after Tuesday’s +$0.035 <52-week low of $0.74> with a news oriented positive +$0.04 or +5% pre-open indication,
Negative Downside Indication: picking to sell …
Voyager Therapeutics (VYGR) closed down -$0.26 to $4.30 <52-week low of $2.46> with a negative -$0.31 or -4.92% pre-open downside indication,
Sangamo Therapeutics (SGMO) closed down -$0.18 to $3.77 after Tuesday’s +$0.07 <52-week low of $3.48> with a negative -$0.20 or +5.31% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed up +$).10 with 980 shares traded after Wednesday’s -$0.89, Monday’s flat and earnings report post Friday’s flat (it was down -$0.89) with 1,811 shares traded and last Thursday’s and following the previous Wednesday’s 0 shares traded.
- WARNING: Earnings reported a VERY SAD picture of a company’s status without U.S investors and reliance on non-U.S. Chinese investors. Another PPM -private placement – this one for $5.1 M without a price per share notification. Also, the terminal death lawsuit just got settled (4/28) for $6 M with a PPM – a preferred convertible debt financing. is it the ONLY avenue to finance utilizing non-U.S. Chinese investors?
The BOTTOM LINE: The sector falling as the dike has sprung a leak as buyers slipped through the cracks or just hang-on.
Q1/22 earnings season is more than completed (31 of 35 reported) having reported LPS (loss-per-share) results so far MISSING estimates and revenues.
Funds and Investors are NOT stepping-up as algorithmic “Pac-men eat any upside.
A show of expression – one (1) net income reported – Homology Medicine (FIXX) reported on Monday
I am NOT discarding any of my statements, “I STILL believe “we are renting the upside” keep the lows in your minds-eye; the algorithmic “Pac-men” are always lurking! Stay “frosty” … one session does NOT make a market; fear DOES forecast a sub-surface reality regarding sustainability.”
I try to keep it simple … and short!
I caution investors that the severe share pricing’s – technical and fundamental damage has been suffered these past several months which will take longer than a few good sessions to repair.
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.