March 5, 2020 8:36am

Low volume, overly upside moves, make me nervous as I trigger a call for skimming some upside

Pre-open indication: 3 BUYs and 6 SELLs

Q4 and FY19: Caladrius Biosciences (CLBS) and Cellectis SA (CLLS)

March is a rollercoaster month – skim if you can trim, buy if it will fly and sell if compelled! The changing dynamics around the presidential primaries, the coronavirus and markets have challenged share pricing leaving predictions considered deranged

Dow future are DOWN -2.38% (-643 points), S&P futures are DOWN -2.34% (-73 points) and NASDAQ futures are DOWN -2.26% (-202 points)

 

U.S. stock futures were sharply lower, following a massive rally in the Wednesday’s session;

European stocks turned negative after a $50 billion pledge from the International Monetary Fund (IMF) to tackle the coronavirus outbreak while the pan-European Stoxx 600 suddenly reversed course during morning trade to fall -2.8%;

Asia Pacific rose after the Dow soared more than 1,000 points and the IMF announced a $50 billion aid package to combat the impact of the coronavirus.

 

Henry’omics:

Over the past few sessions, volatility has reigned supreme.

Outsized moves in U.S. equity benchmarks have come at a daily clip lately. Should one blame coronavirus or Bernie Sanders or the FED as wild intraday swings followed by dramatic intersession moves may be here to stay?

These series of factors have also been driving investor sentiment, ranging from developments around the coronavirus outbreak that continued to spread globally to former Vice President Biden’s major wins during Super Tuesday.

So, what is driving the markets DOWN, the same issues from above two 920 paragraphs while Biden recognizes his wife as his sister?

The IMF and some countries are establishing emergency funding packages, which provides for vaccine research, prevention and preparedness efforts, doing right is correct but, it will dilute governments unless they share results!

The latest figures from the World Health Organization (WHO) put the number of global coronavirus cases at about 93,000. The number of global deaths stands at around 3,199, according to data from the WHO.

 

My other question, did we NEED the FED ‘s rate cut on this point in time?

Back to the sector and this rollercoaster market – I’d be hedging my positions and skimming others against the impact of the coronavirus!

My thematic this a.m.:

Swing low, sweet chariot

Coming for to carry me lower

Swing low, sweet chariot

Coming for to parry yesterday’s market upside moves

The biggest issue for this market and sector is NOT having an answer or conclusion to the current predicament!

 

Wednesday night’s title: “the trend is your friend until it isn’t as the market reprices the impact of the coronavirus as I stated this a.m., “We invest to achieve a sustainable return!” The problem the sector is what it is until it isn’t!”

  • the NASDAQ closed UP +334 points (+3.85%);
  • the IBB closed up +4.69% and XBI closed up +4.70%;
  • the close was positive with an A/D line of 30/3, 2 flats of 35 covered;
  • the range of the 30-upside was +0.31% (SLDB) to +9.85% (GBT) while the 3-downside ranged from -0.42% (CLBS) to -17.7% (BSTG); 
  • 5 out of the 30-upside had higher than the 3-month average volume;
  • 2 out of the 3-downside had higher than the 3-month average volume;

 

Q1:

March registered 2 positive and 1 negative close

February registered 9 negative, 9 positive closes, 3 vacation days and 1 holiday.

January registered 9 negative, 10 positive closes and 2 holidays.

 

Q4:

  • December register 11 negative and 10 positive closes
  • November registered 1 holiday, 12 positive and 8 negative close;
  • October registered 10 positive, 1 neutral and 14 negative closes;

 

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

Pre-open indications:

BUY: CLLS (on news of Servier executed the execution of the binding term sheet announced on 2/18/2020 after its 2014 and 2019 amendment), FATE (based on +$0.75 aftermarket indication) and RENE.L (in its usual swing from its low).

SELL: GBT (charts do not look bearish, the trend is down and there may be weakness ahead), ADRO (based on -$0.10 aftermarket indication), FIXX (chart looks a little “peaky” to me), CLBS (based on today’s earnings announcement)

BUY to SELL: CRSP (based on -$0.06 aftermarket indication), NTLA (chart looks peaky),

 

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 investment objectives.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.