May 11, 2020 7:48am

Key word, expectation related to a bumpy economic reckoning which highlights temperature checks of reopening statistics

Quarterly results: bluebird bio (BLUE) and Sangamo Therapeutics (SGMO)

Pre-open indications:  1 BUY and 5 SELLs

What I provide is an “intelligence daily” to inform the RegMed/cell and gene therapy sector and its investors utilizing indication and warning analysis. Check the BOTTOM LINE <read more>

Dow future are DOWN -0.75% (-183 points), S&P futures are DOWN -0.77% (-23 points) and NASDAQ futures are DOWN -0.41% (-38 points)

 

U.S. stock futures are fluctuating to the downside implying a Monday negative opening;

European stocks traded early positive and then flipped lower as lockdown lifting continued throughout the continent as the pan-European Stoxx 600 added +0.6% and then declined -0.6%;

Asia Pacific stocks traded higher as hopes rise on economies reopening, even as U.S. reported record job losses in April as he MSCI Asia ex-Japan gained +0.91%.

 

Henry’omics:

Starting a new week with negative leanings after the S&P 500 gained more than 1% on Thursday and Friday, leading to the broader-market average’s first weekly advance in three weeks. On Friday, investors shrugged off the biggest one-month job losses on record as expectations of an economic reopening outweighed the negative data.

What’s looming in the short-term expectation – share pricing evaporation.

And … more quarterly earnings are due.

Friday night’s title: “fugly unemployment rates were priced into Friday’s market’s recovery. We’re all also suffering from an insufferable monologue of conflicting information as to re-opening procedures in the months ahead”

  • The NASDAQ closed UP +141.65 points (+1.58%);
  • The IBB closed up +0.98% and XBI also closed up +1.46%;
  • The CBOE Volatility Index (VVIX: INDEX) was down -11.01% as 8 out of the 20-upside had higher than the 3-month average volume and 3 out of the 12-downside had higher than the 3-month average volume;
  • Friday closed positive at 20/12 and 3 flats;
  • The % of the 20-upside were +0.65% (CRSP) to +31.9% (BLCM) while the 12-downside ranged from -0.07% (NTLA) to -4.58% (RGNX); 

Q2:

  • May registered 2 negative, 4 positive closes
  • April registered 10 negative, 11 positive closes and 1 holiday.

Q1:

  • March registered 11 negative, 10 positive closes and 1 neutral close.
  • February registered 9 negative, 9 positive closes, 3 vacation days and 1 holiday.
  • January registered 9 negative, 10 positive closes and 2 holidays.

 

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

Overbought:

  • ReNeuron (RENE.L) after two (2) with a -negative -$2.00 US indication
  • Bellicum Pharmaceuticals (BLCM closed up in two (2) sessions with a +$2.22 upside – a target;
  • Pluristem (PSTI) closed up +$1.40 and has a negative US -$0.43 or -4.35% pre-market indication;
  • BioLife Solutions (BFS) closed up in two (2) session with a +$1.09 upside – overbought;

Oversold:

  • bluebird bio (BLUE) closed down -$0.07 after Thursday’s +$4.50 and Wednesday’s -$1.37 and has a positive +$1.60 or +2.70% pre-market indication;

Sell into Strength:

  • Athersys (ATHX) closed up +$0.21 to $2.84 with a lot of volume to sell into as trials will take time plus a negative as far as taking PPP funds from government will simultaneously raising $57.6 M. ATHX has a positive +$0.07 or +2.46% pre-market indication;

 

The BOTTOM LINE:  The IBB was up +6.10% for the week and the XBI (on which I focus) was up +9.31% as the week registered four (4) positive closes and one (1) negative (Thursday) close.

  • In tandem, the Dow (+2.5%), S&P 500 (+3.5%) and the Nasdaq (+6%) were up.
  • The S&P 500 has bounced more than 30% from its virus low and is just 13.6% away from its record high. The Nasdaq is more than 35% off its lows and is now up 1.6% for 2020.

Define fear for me; I say maybe NOT today but, can you afford to wait for yet another decline?

  • Would you trust soulless, algorithmic programmed ruling non-human electronic trading?

I was once told if you eat the dirt as you crawl under the wire (in training), keeping your butt to the ground (puckered); kept your weapon clean (i.e. powder dry) you’d make it through the conflagration (a nice word).

Let’s slowly and partially liquidate the highs, pick some new lows to buy; then sell into the next wave of highs and learn to crawl through this conflagration!

Covid-19 impact on markets - has it passed or not? Not … a sell-off looms yet again!

 

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.