April 19, 2017 7:53am
The oversold are the toys in the sandbox that we want to play with…
As the sector points to a salvage and repossession of models
Pre-open indications: five (5) – 3 SELLS, 2 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 +0.14% and NASDAQ futures are +0.31%
U.S. stock index futures pointed to a higher open on Wednesday morning a day after Goldman Sachs shocked Wall Street by missing earnings estimates.
European markets moved higher during morning trading as investors digested news of snap elections in the U.K. and fresh earnings reports.
Asia markets declined, tracking Wall Street's negative close overnight, with resource and financial shares under pressure. Investors also remained vigilant amid U.S.-North Korea tensions and the nearing of the French presidential election.
Data docket: will see the Federal Reserve issue the Beige Book detailing economic conditions at around 2 p.m. ET.
The cell therapy sector closed NEGATIVE on Tuesday, POSITIVE Monday; the market was closed on Friday; following a POSITIVE close on Thursday and NEGATIVE last Wednesday.
The cell therapy sector’s record after the last 5 days (of 43 covered companies):
· Tuesday closed NEGATIVE with 31 decliners, 10 advancers and 2 flat;
· 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;
· Last Wednesday closed NEGATIVE with 21 decliners, 17 advancers and 5 flats;
Remembering Tuesday’s closing bell newsletter, “The cell therapy sector needs to rethink its perception, which has raised serious questions about what “our” universe is accomplishing?
Reiterating, “The sector moves on the lack of news and expectation thus doesn’t perform in a sustainable manner in any session. Its approach to share pricing is lagging which has kept the “machines” selling off.”
The three major indexes snapped a three-day losing streak on Monday, with the Dow rising more than 180 points, albeit during the lightest trading volume day of the year following the Easter holiday.
What did I see on Tuesday, the DOW <-113.64> and NASDAQ <-7.32> took dives as volatility was high as the sector’s advance/decline line surged from Monday’s 17 decliners to Tuesday’s 31.
The sector’s volume selling was:
· NWBO <-$0.03>, ONVO <-$0.08> and BLUE <-$4.65>
The sector’s buying was:
· MDXG <+$0.21>, AGTC <+$0.10> and OSIR <+$0.12>
What else did I see: Tuesday’s decliners and gainer’s ranges:
… Decliners ranged from -0.33% <KOOL> to -14.47% <NWBO> in 31 equities;
… Gainers ranged from +0.24% <RGNX> to +3.03% <ISCO> in 10 equities;
What’s in the title … playing in the sector’s sandbox seems to be a theme as Q1/17 financial results are being prepared, traders seem more interested in punishing those who fail to provide any news and taking profits.
My thesis, it’s a play day for trading!
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% and is NOT indicating in Wednesday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Tuesday down -1.40% and is NOT indicating in Wednesday pre-market;
· The Health Care Select Sector SPDR ETF (XLV) closed down -1.09% Tuesday and is NOT indicating in Wednesday’s pre-open;
· The iShares Russell 2000 (IWM) closed up +0.02% on Tuesday and was UP +0.12% Wednesday’s pre-open
Companies in my headlights:
Athersys (ATHX) closed down -$0.02 to $1.47. The aftermarket indication is a negative -$0.07 or -4.70%. I am still NOT a believer – Maintaining SELL;
Kite Pharma (KITE) closed down -$2.47 to $79.63 following Monday’s $82.10 (-$0.15) after Thursday’s $82.25 (+$3.05) following Wednesday’s $79.20 (+$0.91). The pre-market indication was a positive +0.90 or +1.13% - Maintaining BUY;
Regenxbio (RGNX) closed up +$0.05 to $20.95 following Monday’s $20.90 (+$1.15) 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. Maintaining SELL;
Spark Therapeutics (ONCE) closed down -$0.74 to $52.97. Oversold as there is solid and weak yet volume was light on the downdraft on a very negative close session on Tuesday – BUY;
Verastem (VSTM) closed down -$0.16 to $1.94 following Monday’s $2.10 (+$0.25) 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-down” list. I am still nervous about the spurt in pricing, it draws attention; the aftermarket indication was a negative -$0.02 or +1.03% – 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.
