January 26, 2017 8:13am
… Even if we forget the sector’s pricing fluctuations and the performances of “our” universe; money seems to move without a true direction
As I have said, follow the share pricing!
Who is in today’s headlights – five (5) equities, are they a BUY or a SELL?
I write in every line that investors need to avoid risks as if I were the first to be hurt if I am wrong!
SELL: BSTG, CLBS, KITE, ONCE and OSIR
Indexes and ETFs: The IWM (+0.09%), IBB (+0.10%) and XBI (+0.19%) are UP while the XLV (-1%) is DOWN
Dow futures are UP +0.12% and NASDAQ futures are UP +0.21%
U.S. stock index futures pointed to a higher open on Thursday after the Dow closed above 20,000 points for the first time in the previous session.
European markets moved higher extending the bullish sentiment that took the Dow Jones industrial average to an all-time high.
Japanese and Hong Kong shares were up, taking their cues from the Dow shooting past 20,000 after a volley of executive orders by President Trump. Markets in Australia, India, Taiwan and Vietnam are closed for bank holidays.
Data docket: initial jobless claims are due at 8:30 a.m. ET, with Markit services PMI data set to come out at 9:45 a.m. ET. Leading indicators and new home sales are set to be released at 10 a.m.
The stem, cell, gene and regenerative therapy (SCG&RT) closed POSITIVE on Tuesday, NEGATIVE on Monday, Friday, Thursday and last Wednesday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
· Wednesday closed POSITIVE with 12 decliners, 28 advancers and 3 flats;
· Tuesday closed POSITIVE with 15 decliners, 26 advancers and 2 flats;
· Monday closed NEGATIVE with 25 decliners, 13 advancers and 5 flats;
· Friday closed NEGATIVE with 26 decliners, 15 advancers and 2 flats;
· Last Thursday closed NEGATIVE with 32 decliners, 8 advancers and 3 flats;
Remembering Wednesday’s closing bell newsletter, “The market soars to a major milestone as “our” universe only skips to a trading beat. Sector moves aren’t what they used to be.”
- Reiterating, “Traders waded in after one positive session and five negative closes … who would make that bet … momentum was on trader’s side. I believe there is nothing more to it …”
As I also stated, “However, investors should look out for a potential pullback from these levels by Friday; who wants to be long over a weekend and be subject to a possible twitter barrage!”
- There’s no better time than now to make changes that will protect your portfolio from a directionless market!
This will strike you as MY usual advice, since a fluctuating sector and market appears to be going nowhere soon.
- But don’t forget Q4/16 financial results are imminent and we all know shares depreciate before most announcements.
Cash positions are about to be on display … setting the expectation of the neediness of many a sector participant!
You’ve made it to the office, turned on the monitor, having just gotten your coffee and it hits you - what could be today’s trades?
Watch list:
· The iShares Nasdaq Biotechnology (IBB) closed Wednesday up +0.99% and is UP +0.10% in Thursday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Wednesday up +0.34% and is UP +0.19% in Thursday’s after-market;
· The Health Care Select Sector SPDR ETF (XLV) closed up +0.94% Wednesday and is DOWN -1% in Thursday’s pre-market;
· The iShares Russell 2000 (IWM) closed up +0.94% on Wednesday and is UP +0.09% in Thursday’s pre-market
Companies in my headlights – short, sweet and some sour:
Biostage (BSTG) closed UP +$0.046 to $0.816 following Tuesday’s $0.77 (+$0.02). With an S-1 filed and a banker named, HC Wainright – it is only a matter of time for an offering’s downdraft and a sizeable discount and then the warrant overhang. What’s keeping it appreciating – day traders, they will desert in a micro second – Maintaining SELL;
Caladrius Biosciences (CLBS) closed UP +$0.20 to $3.87. Three new sites are enrolling subjects for its P2 clinical trial of CLBS03. The study is evaluating CLBS03 consisting of autologous expanded regulatory T cells, or Tregs) as a treatment for recent-onset type 1 diabetes (T1D). After all the years of studies that have taken place in diabetes; CLBS is going to come up with a treatment – CLBS can’t even get their investors to pay-up for their investments while multiple reverses and offerings have taken place – who can believe anything – Maintaining SELL;
Kite Pharma (KITE) closed UP +$0.79 to $48.77 after Tuesday’s $47.98 and Monday at $45.91 – that’s $2.86 in the pot. Last week ranged for $47.21 to $47.63, while the previous week ranged from $49.05 to $51.99. Dangerous times to not be quick fingered and ready to sell with a profit in the till to sell and buy back another day. Better to wait for more if there will be left on the table or … SELL;
Dangerous times to not be quick witted and be ready to sell with one hand in the till to sell and buy back another day.
Osiris (OSIR) closed UP +$0.23 to $5.51. What’s with the upside after late or no 8-K, 10-Q, an SEC investigation, multiple CEOs, months and quarters without filings, new lawyers and accountants and fired employees? Nothing sticks – SELL;
Spark Therapeutics (ONCE) UP +$0.13 to $58.52. This week’s ranged Tuesday’s $58.39 and Monday’s $57.63 while a short <last> week ranged from $54.20 to $57.24 with the previous week’s $56.11 to $62.49 - SELL
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.
Henry’s comments are for informational purposes only and are not a substitute for personalized advice. Consult your advisor about what is best for you.
