July 5, 2022 7:56am
Between recession fears and inflation worries
Pre-open indications: 6 SELLS into Strength 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.
Who is defining the metrics for investors and keeping you notified of the sector and market fluctuations? What I provide is a trusted source of share pricing intelligence – it’s more than opinion, I deal in the facts and numbers that back them up.
The 8:00 A.M., ET edition
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 -0.54% or (-167 points), S&P futures are DOWN -0.61% (-23 points) and NASDAQ futures are DOWN -0.83% (-96 points) early in the pre-open – so far,
Stock futures were lower early on Tuesday
European stocks were lower,
Asia-Pacific stocks were mixed as the Reserve Bank of Australia hiked interest rates in line with expectations. The Shanghai Composite closed fractionally lower, and the Shenzhen Component was down.
Friday, the Dow closed UP +321.83 points (+1.05%); the S&P closed UP +39.95 points (+1.06%) while the Nasdaq closed UP +99.11 points (+0.90%)
Markets ended June, Q2 and one of the worst 1H (first halve) in decades on Thursday, and major averages posted their fourth (4th) week of losses in five (5) despite modest gains during Friday’s trading session.
In this shortened holiday week, investors are looking ahead to the release of June jobs report data on Friday. According to estimates, job growth likely slowed in June with 250,000 nonfarm payrolls added, down from 390,000 in May. Economists surveyed expect the unemployment rate to hold at 3.6%.
Economic Data Docket: June’s euro area services PMI (purchasing managers’ index) came in at 53.0, slightly above a consensus forecast of 52.8 but down from 56.1 in May.
Friday opened the door to a holiday and to a shortened trading week, RegMed Investors’ (RMi) closing bell from Friday: “as indexes fell and turned positive, the cell and gene therapy sector dug-out of the share pricing hole. Sentiment and conviction have not evolved, algorithms and electronic trading recognized oversold conditions as June ended. I believe it is a BID’EM up session to take share pricings down in next week’s follow-on!” … https://www.regmedinvestors.com/articles/12499
Ebb and flow –
Q3/22 – 1 positive close
June – 1 holiday, 9 positive and 11 negative closes
· May - 11 positive and 10 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
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
SELL into Strength: time for profit …
- Chinook Therapeutics (KDNY) …
- Beam Therapeutics (BEAM) …
- Caribou Biosciences (CRBU) …
- AxoGen (AXGN) …
- Global Blood Therapeutics (GBT) …
- Ionis Pharmaceuticals (IONS)…
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed down -$0.17 to $4.48 with 568 shares after Thursday’s flat traded with 1 share traded, Wednesday’s+$0.15 to $4.65 with 1,015 shares traded, Tuesday’s +$0.20 with 372 shares traded and last Monday’s $0.00.
WARNING: “Earnings” will represent a VERY SAD picture of a company’s status without U.S investors and reliance on non-U.S. Chinese investors.
BSTG seems to always finagling a finagle and NOTHING is CLEAN and STRAIGHTFORWARD; is it the ONLY avenue to finance to utilize non-U.S. Chinese investors?
· WATCH and be ready for a BIG reverse of shares to enable offering from multiple private placements
The BOTTOM LINE: I try to keep it simple … and short!
Friday opened positive at 28 up/ 5 down and 2 flats, stayed positive at the mid-day to 22/12 and 1 flat, ending with a positive close of 26/8 and 1 flat.
Markets and indirectly the cell and gene therapy sector will be affected by June’s all-important jobs report to be released this week (today is Tuesday, Monday was a holiday).
A market strategist has sounded the alarm on more declines ahead for equities, with some suggesting the S&P 500 may plunge another 15%. <Matt Maley, equity strategist at Miller Tabak>
"The thing is, people keep saying that the recession is getting priced into the stock market,” Maley said. “I think it’s just barely beginning to be priced in."
Be prepared, earnings or LPS (loss-per-share) sessions are on their way and many companies will be just as glad to get them out as fast-as-possible to re-set ANY trajectory in August for September. I read a heck of a lot of related material for my “Bottom Lines”.
Economist Nouriel Roubini known as "Dr. Doom", said the US is headed for a recession that could send stocks falling another 50%. The S&P 500 just closed its worst first half of the year since 1970.
"They will eventually wimp out and accept high inflation," Roubini predicted, referring to the Fed.
The ability to be aware is the point, not that everything will happen as” some, even me” predict".
The next crisis will not be like its predecessors," Roubini wrote. "Today, we face supply shocks in a context of much higher debt levels, implying that we are heading for a combination of 1970s-style stagflation and 2008-style debt crises – that is, a stagflationary debt crisis."
There is VALUE out there however, it’s about playing or betting the timing of the sector.
We are left with choosing to hang on to “our” portfolio position as it is a given that the sector shifts from fierce, sudden sell-offs to gaining altitude or ascending not to its value but, better than it was.
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.