March 28, 2017 8:22am

 

… The volume of the  overbought was low and suspect

Do you realy want to depend on ETFs and algorithms for an upside

 

Pre-open indications were split, flat and then down while my teacup was being emptied

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

 

The sector is what it is, until it isn’t and even then it doesn’t seem to be…

 

Readership is a team sport, are you on it?

 

 

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

 

 

Dow futures are DOWN -at 0.12% and NASDAQ futures are DOWN -0.07%

 

 

U.S. stock index futures pointed to a lower open on Tuesday as investor anxiety over U.S. President Donald Trump's surprise failure to deliver on health-care reform subsided for tentative hopes on planned stimulus policies.

European markets were in positive territory as global investors dismissed concerns over President Donald Trump's ability to deliver with campaign pledges.

Asian markets gained as investors shrugged off the disappointment from the current U.S. administration's ability to push through legislation to repeal and replace the Obama-era health-care law.

 

Data docket: will see advance inventories and the S&P/Case Shiller 20-city home price index released before 9 a.m ET. Services PMIs (purchasing managers' index), consumer confidence and Richmond Fed survey data are all scheduled to be released before 10 a.m ET.

 

 

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

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

·         Monday closed POSITIVE with 8 decliners, 33 advancers and 2 flats;

·         Friday closed POSITIVE with 13 decliners, 27 advancers and 3 flat;

·         Thursday closed barely POSITIVE with 18 decliners, 20 advancers and 5 flats;

·         Wednesday closed NEGATIVE with 26 decliners, 15 advancers and 2 flats;

·         Last Tuesday closed NEGATIVE with 34 decliners, 8 advances and 1 flat;

 

 

Remembering Monday’s closing bell newsletter, “a wild ride as the sector jumps after an ignominious open. Thanks to the algorithms, we have appreciation through weightings.”

  • Reiterating, “Approximately 80% of today’s volume was less than the 3 month average. Monday was also a set-up for trading the ups!”

Monday reaped the upside from volatility and the classic battle of the overbought to cruel oversold as investor complacency enjoyed a premium.

  • I wouldn’t depend on algorithms and ETF exposure ...

 

After three (3) positive session following two (2) negative closes – I am feel the arthritis in the sector.

It is a stretch to believe the SCG&RT sector can maintain its positive mirror reflection!

  • This is an elastic sector where nothing sticks after multiple sessions. The question is does volatility provide opportunity as does volatility.

 

Investors have shrugged off bad news and sold into good news – the issue is also investor complacency as traders allegiance to only buying the dip and selling in the very short term!

 

 

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  Monday up +1.06% and is UP +0.63% in Tuesday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Monday up +1.50% and is NOT indicating  in Tuesday’s after-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed up +0.27% Monday and is NOT indicating in Tuesday’s pre-market;

·         The iShares Russell 2000 (IWM) closed up +0.19% on Monday and DOWN -0.33% in Tuesday’s pre-market

                                                                                   

 

Companies in my headlights:

 

The secor is too FICKEL – change is also just too frequent and if I don’t feel the force – say so on the sidelines for clearer indications!

 

 

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.