June 5, 2018 8:20am

I am still barking about building your reserve from the June swoon

Incrementally sell percentages of the upside, even if there is money on the table

 

For it might not be there in the short-term future

 

Pre-open indications: 3 BUYs and 2 SELL

 

If you were a subscriber, and had read Monday’s closing “brief” you’d understand how today’s pre-open indications shed light on share pricing!

 

Get set for a slightly higher open

Dow futures are UP +11% (+27 points) and NASDAQ futures are UP +20% (+14 points)

 

U.S. stock index futures are slightly up ahead of the open, as markets overseas showed a relatively mixed to positive picture on Tuesday.

European bourses turned positive late Tuesday morning

Asian markets mostly closed higher

 

Data docket: the services purchasing managers' index (PMI) is due out at 9.45 a.m. ET, followed at 10 a.m. ET by data including non-manufacturing ISM report on business, the job openings and labor turnover survey (JOLTS), and the quarterly financial report.

 

Henry’omics:

From Monday’s night’s newsletter: “who opened up, where’s the mid-day and I don’t give a damn unless we close up. Monday opened down, stayed down though the morning hours to the mid-day and closed to the upside; as I had predicted a session for profit-taking to build cash for the June swoon.”

I also stated, “Sector equities posted gains on Monday, in a late day rally as traders appeared to accepts ASCO positives and some negatives tensions which seemed to be focused on a ”happy ending” rather than a sustainable reality! I don’t believe it will last long as R I S K is a four letter expletive!”

An issue of the ASCO and BIO week, ASCO is spewing clinical results but, how much of the BIO convention’s “spirit” are already is priced into equities and how much of risk are they willing to quantify.

That’s why volatility is behind the swings in last week and this week’s advance/decline lines (A/DL) and equity pricing.

 

Tuesday’s moves:  Reiterating, “Despite ASCO’s upbeat mood and BIO’s Seaport’s freneticism, it just might be time for some profit-taking!”

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating …% in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a DOWNSIDE of -0.08% in Tuesday’s pre-open

 

 

June begins its second (2) session with a positive close;

  • In Monday’s (second of June’s sessions), the iShares NASDAQ Biotechnology (IBB) was down -0.65% after Friday’s +1.28%,Thursday’s -0.06%, Wednesday’s +1.34% and last Tuesday’s -0.45% - another downside move?
  • Monday’s decliners ranged from -0.13% <OSIR -$0.01 > to -6.80% <RGNX -$3.65 > in 18 equities;
  • Monday’s gainers ranged from +0.59% <CUR +$0.01 > to +8.90% <BLUE +$8.90 > in 25 equities;

 

Last five (5) sessions:

  • Monday closed was POSITIVE with 18 decliners, 25 advancers and 2 flats;
  • Friday (June 1st) closed was POSITIVE with 15 decliners, 29 advancers and 1 flat;
  • Thursday (May 31) closed was POSITIVE with 12 decliners, 31 advancers and 2 flats;
  • Wednesday closed was POSITIVE with 12 decliners, 31 advancers and 2 flats;
  • Last Tuesday closed NEGATIVE with 27 decliners, 15 advancers and 3 flat;

 

Companies in my headlights:

Bellicum Pharmaceuticals (BLCM) closed down -$0.31 to $8.22 after Friday’s +$0.45 to $8.53 after Thursday’s $8.08, Wednesday’s $7.93 and Tuesday’s $7.95. BPX-501 is in P3 clinical studies in both the U.S. and Europe targeting treatment of blood disorders and farther along in Europe. BLCM expects to report top-line data from its BP-004 study of BPX-501 in treating malignant and nonmalignant pediatric patients undergoing haploidentical hematopoietic stem cell transplant (haplo-HSCT) by the end of 2018. If those results are positive, Bellicum plans to file for European approval next year. There's certainly a solid market opportunity for BPX-501 if it's successful in the registrational studies considering the FDA placed a clinical hold on studies involving BPX-501. This clinical hold resulted from three cases of encephalopathy in patients taking the drug (MotleyFool). The good news, though, is that this clinical hold was lifted in April after BLCM agreed to implement an amended study protocol that monitors patients for potential adverse neurological events. ASCO aside, BLCM will present at the Jefferies 2018 Global Healthcare conference on Wednesday – Maintaining BUY;

bluebird bio (BLUE) closed up +$8.90 to $191.30 after Friday’s +$3.35 to $182.40 and is DOWN -$10.70 or -5.87% in the pre-market. BLUE had some not-too- great-but-not-good-enough results in multiple myelomatrial. At ASCO, BLUE watchers were hoping that the latest data would show progression-free survival (PFS) as high as 15 months.” – SELL;

Pluristem (PSTI) closed up +$0.06 to $1.41 after Friday’s +$0.02 to $1.35 and is DOWN -$0.01 in the pre-market after news that the top-line results of the multi-national P2 clinical trial of PLX-PAD cells in the treatment of Intermittent Claudication (IC) will be released on 6/12/18. PSTI seems to never hold-on to news related up side, investors are always waiting for another shoe to drop – BUY to SELL;

Stemline Therapeutics (STML) closed down -$0.10 to $19.55. STML presented positive data from the SL-701 and SL-801 clinical trials at ASCO - The P2 trial of SL-701 in previously treated GBM patients met its primary endpoint of 12-month overall survival (OS-12). Long-term survivors: 50% OS-12 with SL-701 + bevacizumab - Major responses, including complete responses (CRs), in second-line GBM were well-tolerated, with a very manageable side effect profile. Long-term survivors were comprised largely of patients with target-specific CD8+ T-cell responses. Median OS of target-specific CD8+ T cell responders not reached. SL-801 – clinical highlights of manageable safety and tolerability profile, largely grade 1-2 adverse events (AEs), to date; multiple cases of stable disease (SD) in a heavily pretreated solid tumor patient population; pharmacokinetic (PK) analyses suggest dose-dependent increases in exposure yet ideal therapeutic doses were not yet determined as dose escalation continues - BUY;

Verastem Oncology (VSTM) closed down -$0.19 to $5.14 and is UP in the pre-market +$0.46 or +8.95% on news of their entry into an exclusive licensing agreement for Yakult to develop and commercialize duvelisib, a first-in-class oral dual inhibitor of phosphoinositide 3-kinase (PI3K)-delta and PI3K-gamma, for the treatment, prevention or diagnosis of all oncology indications in Japan. Verastem’s NDA for duvelisib is currently under review with the U.S. FDA and is seeking full approval for the treatment of relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL) and accelerated approval for the treatment of relapsed or refractory follicular lymphoma (FL). On April 9, 2018, Verastem announced that the FDA had accepted the NDA for filing with Priority Review – BUY;

 

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.