March 8, 2017 7:52am

 

But, the alternating positive/negative closes could spell a more opportunistic day

 

Anyone who reads my posts, knows that I am about making money, no matter what happens in the sector

… Dow futures are DOWN -0.05% and NASDAQ futures are DOWN -0.02%

… Companies in my trading headlights: seven (7)

… Investors need to gauge whether any advances are just speculation

 

Critical information ahead of “our” universe’s open! I provide intelligence and analysis for short and near-term investment.

 

 

Expectation will be the word for 2017 – meeting the unknowns with the soon to be exposed concerns will be the subject of investing decisions throughout this year.

 

 

U.S. stock index futures pointed to a lower open on Wednesday as traders focused on fresh economic data ahead of a probable interest rate hike next week.

European markets turned higher ahead of the release of the latest U.K. budget while investors also digested corporate earnings and fresh data from Germany.

Asian equities were mostly in the red amid mounting geopolitical risks in the region and rising expectations that the Federal Reserve would tighten monetary policy next week.

 

Data docket: ADP payrolls for February released at 8:15 a.m. ET with productivity and unit labor costs for the final three months of 2016 due to follow at 8:30 a.m. ET. Wholesale trade data for January is scheduled for 10 a.m. ET.

 

 

The stem, cell, gene and regenerative therapy (SCG&RT) closed NEGATIVE on Tuesday and Monday, POSITIVE on Friday, NEGATIVE on Thursday and POSITIVE last Wednesday.

The SCG&RT sector’s record after the last 5 days (of 43 covered companies):

·         Tuesday closed NEGATIVE with 28 decliners, 15 advancers and 0 flats;

·         Monday closed NEGATIVE with 28 decliners, 12 advancers and 3 flats;

·         Friday closed barely POSITIVE with 19 decliners, 20 advancers and 4 flats;

·         Thursday closed NEGATIVE with 24 decliners, 11 advancers and 8 flats;

·         Wednesday closed POSITIVE with 11 decliners, 27 advancers and 5 flats;

 

 

Remembering Tuesday’s closing bell newsletter, “Where is the bong - no one is feelin’ the high? The sector closes down two (2) days in a row after alternating negative/positive closes; my take, dangers are lurking in the fog of speculation”

  • Reiterating, “Since many investors are sticking their heads in the sand, and ignoring sector, market and specific company risk - ask yourself who really benefits – CEOs who are trying to pull your cap over your eyes!”

As I had stated, if anything is certain, it’s that short-term uncertainty is unlikely to go away!

  • A warning sign is flashing in the stem, cell, gene and regenerative therapy (SCG&RT) sector and highlighting growing agitation among investors that “our” universe will continue to unwind as cash positions become evident – the ultimate arbiter of the length of their runways!

I wouldn’t be banking on the SCG&RT sector to make your portfolio strong this quarter, or next or even the next!

  • The key is trading the ups, buying the lows so they can eventually be the overbought through unbridled speculation.

Sector headlines should be considered questionable as too many of “our” universe’s companies suggest that investors could pay dearly for the risk they are carrying as there are many reasons to suggest that fundamentals will continue to be shaky.

 

On Monday, there were 12 highs compared with 28 lows; and on Tuesday, 15 companies experienced a high versus 28 lows – the carousel loads, rolls and leaves off the traumatized riders who paid for the ride – just like “our” universe!

 

 

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  Tuesday down -1.60% and is DOWN -0.52% in Wednesday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Tuesday down -1.61% and is NOT indicating in Wednesday’s after-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed down -0.70% Tuesday and is NOT indicating in Wednesday’s pre-market;

·         The iShares Russell 2000 (IWM) closed down -0.65% on Tuesday and is DOWN -0.10% in Wednesday’s pre-market

                                                                                   

 

Companies in my headlights: eight (8)

Understanding the tone of the sector is paramount – watch the trends <volume, advance/decline lines, momentum and relative strength etc.>, the peaks and valleys as well as the hesitancy of flats!

 

Keep your eyes open, ears flapping and your trading fingers limber:  

BUY -  

… AGTC closed down -$0.05 to $7.65, there is $8.83 per share in cash and a Biogen (BIIB) partnership and

… ONVO – Investors are underestimating its pricing and revenue potential!

… KITE has an aftermarket kick +$0.38 to $74.75 after proposing a $75.00 offering and

… ADRO who closed down -$0.35 and has an aftermarket indication of +$0.15

S

ELL –

… FCSC – convertible and warrant offering proposed;

… BSTG, the day traders haven’t had their day pre financial results;

… RGNX has an aftermarket decline of -$0.55 or -2.64% post financial results announcement and

… CAPR whose pricing has wavered is floating on pure speculation consider $2.50 or less pre financial results on 3/15.                                                                                                                                              

 

 

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.