April 18, 2017 7:51am
What’s up, next and on tap for today …?
Think about how companies are defined lately – by ETF exposure!
That exposure keeps telling us they are an “arbitrage mechanism” to lower volatility – is it time for some serious sarcasm?
Pre-open indications: five (5) – 2 SELLS, 3 BUYS
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 -0.09% and NASDAQ futures are DOWN -0.19%
U.S. stock index futures pointed to a lower open on Tuesday morning as traders eyed escalating geopolitical tensions concerning North Korea.
European markets moved lower during lunchtime trade as U.K. Prime Minister Theresa May announced plans to call a snap general election on June 8 and tensions between North Korea and the U.S. intensified.
Asian shares were mixed as geopolitical tensions took a backseat following a failed missile test by North Korea at the weekend and as U.S. Vice President Mike Pence continues his tour of Asia.
Data docket: housing starts, building permits and industrial production for March released by 9.15 a.m ET.
The cell therapy sector closed POSITIVE on Monday; the market was closed on Friday; following a POSITIVE close on Thursday, NEGATIVE on Wednesday and last Tuesday.
The cell therapy sector’s record after the last 5 days (of 43 covered companies):
· Monday closed POSITIVE with 17 decliners, 24 advancers and 2 flats;
· Friday was a holiday and the market was closed;
· Thursday closed POSITIVE with 17 decliners, 22 advancers and 4 flats;
· Wednesday closed NEGATIVE with 21 decliners, 17 advancers and 5 flats;
· Last Tuesday closed NEGATIVE with 28 decliners, 13 advancers and 2 flats;
Remembering Monday’s closing bell newsletter, “The market climbed as sector tweaked … It’s tough to tell the truth everyday as I need some news to justify share pricing while …
- Reiterating, “Q1/16 financial results are teeing up … and valuations seesawed with resistance.”
The sector is losing its patina as an innovator if it can’t get a therapy beyond a P3!
What did I see Monday> the sector’s buying and selling again was controlled through low VOLUME except in a few cases:
· BCLI <+$0.38>, MDXG <+$0.06>, RGNX <+$1.15> and VSTM <+$0.25>to the upside;
· CYTX <-$0.02> to the downside
What else did I see?
The advance/decline line wandered from a positive open to a negative mid-day as a positive close moved the dial …
By what, it’s certainly not investors but by ETFs and algorithms; how is the sector defined lately – by ETF exposure!
Monday’s sell and buy ranges:
… Decliners ranged from -0.09% <MESO> to -4.62% <ISCO> in 17 equities;
… Gainers ranged from +0.56% <MDXG> to +13.51% <VSTM> in 24 equities;
The sector was again empty of any moving news yet, the algorithms and ETFs were the oscillators …
What’s in the title … An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades...
- An ETF combines the valuation feature of a mutual fund or unit investment trust, which can be bought or sold at the end of each trading day for its net asset value, with the tradability feature of a closed-end fund, which trades throughout the trading day at prices that may be more or less than its net asset value.
Remember, the ability to purchase and redeem creation units gives ETFs an arbitrage mechanism intended to minimize the potential deviation between the market price and the net asset value of ETF shares.
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 down -0.00% and is NOT indicating in Tuesday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Monday up +0.50% and is NOT indicating in Tuesday pre-market;
· The Health Care Select Sector SPDR ETF (XLV) closed up +0.36% Monday and is NOT indicating in Tuesday’s pre-open;
· The iShares Russell 2000 (IWM) closed up +1.17% on Monday and was UP +0.12% Tuesday’s pre-open
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed down -$0.15 to $6.00 after Thursday’s $6.15 (+$0.10) following Wednesday’s $6.05 (-$0.25) after last Tuesday’s $6.30 (-$0.10). AGTC is trading well below its cash value, which is approximately $8.53 in cash per share – Maintaining BUY;
AxoGen (AXGN) closed up +$0.40 <+3.54%> to $11.70. The chart is extremely “peaky” which will draw attention to traders. SELL;
Kite Pharma (KITE) closed down -$0.15 to $82.10 after Thursday’s $82.25 (+$3.05) following Wednesday’s $79.20 (+$0.91). The pre-market indication was a positive +0.89 or +1.08% - Maintaining BUY;
Regenxbio (RGNX) closed up +$1.15 to $20.90 after Thursday’s $19.75 (+$0.95) which is back to April 3rd’s $19.75 with a low of $16.95 so far this month. March started at $19.70 and ended at $19.30 although there was a high of $24.10 and a low of $19.30. The aftermarket indication is -$0.25 or -1.20% – Maintaining SELL;
Verastem (VSTM) closed up +$0.25 to $2.10 after Thursday’s $1.85 (+$0.23) following Wednesday’s $1.62 (-$0.12) post last Tuesday’s $1.74 (-$0.05). Back to the basics, VSTM has $2.19 in cash per share and no debt thus trading below its cash value yet, day traders have the company on its “take” list. I am still nervous about the spurt in pricing, it draws attention; the aftermarket indication was a positive +$0.05 or +2.38% – 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.
