November 10, 2020 7:53am
As markets and sectors end-up being overbought and cyclically rotating
Pre-open indications: 3 BUY and 3 SELLs
What I provide is an “intelligence daily” to ensure that shareholders are kept apprised based on a 24-hour surveillance of “our” universe, the RegMed/cell and gene therapy sector and its surrounding markets
Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors! My gift to you, I've kept RMi subscription FREE during these COVID-19 and volatile times
Dow futures are UP +0.84% (+243 points), S&P futures are DOWN -0.06% (-2 points) and NASDAQ futures are DOWN -1.53% (-181 points)
U.S. pre-open futures are split <Dow futures – up, S&P and Nasdaq futures – down> on Tuesday and fluctuating after big moves on Monday;
European markets were choppy after vaccine news sparked global rally as the pan-European Stoxx 600 bounced either side of the flatline in early trading;
Asia-Pacific markets were mixed while airline stocks soared as investors in the region reacted to positive developments overnight on the coronavirus vaccine front with the MSCI’s index <of Asia-Pacific shares outside Japan> was 0.1% higher.
Henry’omics:
After a sector rally sent equities to few all-time highs, it’s no wonder that sectors and markets are taking a deep breath to reassess valuations and the economic outlook ahead.
Pfizer’s (PFE) news of vaccine progress and the “supposed” end of U.S. elections created a wave of optimism, there are still hard questions about vote counting in many states, production and transportation of the vaccine for distribution to the populous and the fate of another U.S. economic stimulus package.
But, the elephant in the electionroom is still “who” truly has been certified as winning and on “what” margin?
Monday night’s recap: RegMed Investors’ (RMi) closing bell: “volatility swings and then disperses the Nasdaq. Go for the ride until an indication of rotation or sector starts to run out of altitude” … https://www.regmedinvestors.com/articles/11626
- The Nasdaq closed DOWN -181.45 points (-1.53%);
- The IBB closed down -0.08% and XBI closed up +0.42%
- Sector volume was the usual LOW with 15 of the 21-upside having higher than the 3-month average volume with the increased volume of 6 of 12-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +0.89points or +3.58% at 25.75;
- Monday’s percentage (%) of the 21-upside were +0.35% (BCLI) to +17.68% (RENE.L) while the 12- downside of -0.26% (EDIT) to -15.62% (BSTG);
Q4’s: November, so far: 5 positive and 1 negative closes
- Q4’s October: 1 neutral, 11 positives with 1 negative closes
- Q3: July through September: 1 neutral, 28 positive and 34 negative closes with 2 holidays
Companies in my headlights – It’s your decision; I provide an idea and context:
Maintaining Sell:
Biostage (BSTG) closed down -$0.25 to $1.35 with 2.235 shares traded after Friday’s +$0.23 to $1.60 with 635 shares traded after Thursday’s -$0.10 to $1.37, Wednesday’s flat at $1.47, Tuesday’s +$0.09 to $1.47 with 450 shares traded after last Monday’s flat at $1.38 with 102 shares traded).
- Question#1: WHAT BSTG’s management forgets is that evidence EXISTS of past payables that were approved by Chairman Jason Chen and “conveniently” lost?
- Question#2: SHOULD James Mastridge ask for an additional insurance policy paid by the company and considering some serious “due diligence” if he is to sign quarterly?
- Question#3: HOW many daily, monthly and quarterly emails exist from multiple parties over months articulating BSTG’s evolution or non-progress?
BUY from SELL:
bluebird bio (BLUE) closed up +$0.57 to $46.46 after Friday’s -$0.62 to $45.89, Thursday’s -$9.72 to $48.83, Wednesday’s +$4.00 and has a POSITIVE +$0.54 or +1.16% aftermarket indication following earnings release;
Maintaining SELL into strength:
BioLife Solutions (BLFS) closed up +$2.44 to $33.83, after Thursday’s $31.99 and Wednesday’s $31.99 following Tuesday’s $30.91 and last Monday’s $29.56 with a POSITIVE +1.17 or +340% aftermarket (Friday) indication;
Vericel (VCEL) closed up +$1.70 to $24.18 after Friday’s $22.48, Thursday’s $21.73, Wednesday’s $21.20 and last Tuesday’s $20.92 with a NEGATIVE -$0.08 or -0.33% aftermarket indication;
BUY:
Global Blood Therapeutics (GBT) closed up +$0.14 to $38.35 after Friday’s -$22.11 to $38.21, Thursday’s $60.32, Wednesday’s $61.88 and last Tuesday’s $53.99 with a POSITIVE +$0.15 or 0.440% aftermarket (FRIDAY) indication;
Mesoblast (MESO) closed down -$1.19 to $10.54 after Friday’s $11.73, Thursday’s $11.89, Wednesday’s $11.42, and last Tuesday’s $11.26 with a POSITIVE +$0.66 or +6.26% aftermarket indication;
The BOTTOM LINE: Short and non-sweetened …
Let go of momentum driven stocks – cut holding with a profit, volatility will weaken. Don’t just sit on “some’ gains – fill your portfolio with cash and “powder” for coming lows!
Realities are … beginning to set-in re financial disasters of the economy and slow recovery.
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.
