April 7, 2017 8:13am

 

What’s driving the sector – a case of the hiccups …

… Hopefully nothing substantial enough to inhibit a positive closing trend

 

Windows of opportunity are born inside an indication

… All we can do is wait ... which is the sector’s middle name

 

Pre-open indications:  five (5) – 4 SELLS, 1 BUY

 

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

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 -0.01%% and NASDAQ futures are DOWN -0.01%%

 

U.S. stock index futures pointed to a flat open on Friday after President Donald Trump ordered missile strikes against a Syrian airfield.

Europe markets were mostly lower after the U.S. fired cruise missiles against an air base in Syria, raising concerns over an escalating conflict in the region.

Asian markets had a choppy session after oil prices surged more than 2 percent and the Nikkei fell to a four-month low earlier in the session after the U.S. fired dozens of cruise missiles at a Syrian airfield.

 

Data docket: nonfarm payrolls and unemployment rate data released at 8:30 a.m. ET, with wholesale trade data set to come out at 10:00 a.m. ET and consumer credit due at 3:00 p.m. ET.

 

 

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

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

·         Thursday closed POSITIVE with 16 decliners, 25 advancers and 2 flats;

·         Wednesday closed NEGATIVE with 31 decliners, 8 advancers and 4 flats;

·         Tuesday closed NEGATIVE with 30 decliners, 12 advancers and 1 flat;

·         Monday closed NEGATIVE with 31 decliners, 11 advancers and 1 flat;

·         Last Friday closed POSITIVE with 15 decliners, 23 advancers and 5 flats;

 

 

Remembering Thursday’s closing bell newsletter, “The sector was in the dumps yet, rallied just before the close.  Investors are continually confused or distracted by short-term moves.”

  • Reiterating, “It is also another example of how the sector can do the opposite of what many expect if any outlook is alleged - buy the rumor, sell any news.”

ANY resumption of a trend or counter-moves happens at inflection points – Lord I hate the rap of technicals.

I say we are seeing a point in time where the sector has temporarily lost its mojo for a couple of days when we can test the oversold to pass muster to be better valued and later overbought.

  • Specific awareness of, and response to, the positioning of “our” universe is just an extension of trading and investor discord  as it is hard to find all things - technicals, resistance, relative strength and advance/decline lines etc. that work together.

Picking one or only two is not adequate; you want most of them within one session, which just might give probability a stronger trading rationale.

 

So, gear up winning is all about small returns, being subdued fits my style in the present!

 

 

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  Thursday up +0.28% and was indicating  an aftermarket  positive +0.07% before Friday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Thursday down -0.13% and was indicating an aftermarket negative -0.03% before Friday pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed up +0.18% Thursday and was a positive +0.18% in the aftermarket before Friday’s pre-open;

·         The iShares Russell 2000 (IWM) closed up +0.93% on Thursday and was UP +0.01% in Friday’s pre-open

                                                                                   

 

Companies in my headlights:

Athersys (ATHX) closed up +$0.02 to $1.56. After the year’s trend, I get nervous when a share pricing surges on less than solid trial results – not on the presumption of an analyst’s report. However, the aftermarket is a positive +$0.08 or +5.13% - SELL to BUY;

Bellicum Pharmaceuticals (BLCM) closed up +$0.05 to $12.12. The aftermarket indication is a negative -$0.24 or -1.98% while the aftermarket indication was a negative -$0.24 or -1.98% - SELL;

Brainstorm Cell Therapy (BCLI) closed down -$0.44 to $4.06 following Wednesday’s $4.50 (+$0.03) after Tuesday’s $4.47 (-$0.24) following Monday’s $4.71 (+$0.46) after last Friday’s $4.25 ($0.38). I don’t believe the ALS Data is as promising as its press releases Indicates as there is NO indication that NurOwn has reversed or even stabilized ALS in its P2 data. Also, it’s too rich for me and the aftermarket indication was a negative -$0.11 or -2.71% –Maintaining SELL;

Kite Pharma (KITE) closed up +$2.54 to $77.11 following Wednesday’s $74.57 (-$1.33) after Tuesday’s $75.90 (-$2.32) post Monday’s $78.22 (-$0.27) and last Friday’s $78.49. KITE is closer to filing a BLA – that can’t be discounted.  KITE is getting rich enough to take a taste of those ups. The aftermarket indication was a negative -$0.11 or +0.q4% - Maintaining SELL;

Pluristem (PSTI) closed up +$0.05 to $1.50. I’ve never had a hankering for PSTI, their pattern of hyperbole has stretched the limits of promises that are fulfilled and smack of a false narrative as to not being truthfully communicated – Maintaining 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.                                          

Nickel