April 20, 2017 7:29am
… Higher open expected
I loved you yesterday, I liked you today but, will I probably hate you tomorrow?
… Some of the “usual suspects” are doing better than others and certain equities have a bright short-term future even if the near and long term looks tenuous
We are always in a wait and see mode
Pre-open indications: six (6) – 3 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 UP +0.18% and NASDAQ futures are UP +0.31%
U.S. stock index futures pointed to a higher open on Thursday morning after the Dow lost more than 200 points over the last two days.
European markets were higher as investors continued to weigh current political uncertainties and digest fresh corporate earnings.
Asian shares traded sideways, following key earnings as oil prices came off two-week lows set earlier in the session.
Data docket: initial jobless claims and the Philadelphia Fed index released at 8:30 a.m. ET, with leading indicators set to come out at 10:00 a.m. ET.
The cell therapy sector closed POSITIVE on Wednesday, NEGATIVE Tuesday, POSITIVE Monday; the market was closed on Friday; following a POSITIVE close last Thursday.
The cell therapy sector’s record after the last 5 days (of 43 covered companies):
· Wednesday closed POSITIVE with 9 decliners, 29 advancers and 5 flats;
· 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;
· Last Thursday closed POSITIVE with 17 decliners, 22 advancers and 4 flats;
Remembering Wednesday’s closing bell newsletter, “The sector’s pricing accelerated - Snap, crackle and pop – the geometry of motion … As to ETFs and algorithms resetting”
- Reiterating, “Be ready for Thursday’s drift and Friday’s dive!”
What did I see on Wednesday, “the oversold were the toys in the sandbox that we wanted to play with … as the sector pointed to a salvage and repossession of equities” <the advance/decline line jumped to 29/9 and 5 flats from Tuesday’s 10/31 and 2 flats” from Monday’s 24/17 and 2 flats.
- Talk about reversals; generally, the sector’s volume downside volume was still low while upside buying showed strength in a few cases.
• ReNeuron (RENE.L) 2.22 M shares - $0.15 <loser>
• MiMedx (MDXG) 3.07 M shares + $0.50 <gainer>
• Athersys (ATHX) 1.99 M share - +$0.04 <gainer>
• Intrexon (XON) 1.23 M shares - +$0.79 <gainer>
• Northwest Bio (NWBO) 1.06 M shares - $0.01 or -4.29% <loser>
What else did I see: Wednesday’s decliners and gainer’s ranges:
… Decliners ranged from -0.04% <ONCE> to -4.29% <NWBO> in 9 equities;
… Gainers ranged from +0.25% <BCLI> to +4.92% <AGTC> in 29 equities;
What’s in the title … Investors have a love-hate relationship with risk. They love it when exposure to risk means higher gains in a rising sector, and hate it when the flip side of risk shows up as bigger losses during corrections and bear markets.
Assessing risk is more than a casual pastime in MY timeframe and writing.
As I had stated, “ETFs are still an arbitrage mechanism – understand exposure!”
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?
· The iShares Nasdaq Biotechnology (IBB) closed Wednesday up +0.41% and the aftermarket indication was down -0.02% while it is NOT indicating in Thursday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Wednesday up +0.35% and was down -0.06% in the aftermarket, but is NOT indicating in Thursday pre-market;
· The Health Care Select Sector SPDR ETF (XLV) closed up +0.30% Wednesday and was up +0.01 in the aftermarket but did NOT indicating in Thursday’s pre-open;
· The iShares Russell 2000 (IWM) closed up +0.35% on Wednesday and was UP +0.04% Thursday’s pre-open
Companies in my headlights - There is NO market timing but there are indications to consider!
Athersys (ATHX) closed up +0.04 to $1.51 following Tuesday’s $1.47 (-$0.02). The aftermarket indication is a negative -$0.01 or -0.66%. I am still NOT a believer and the aftermarket indicated a spiral – Maintaining SELL;
Intrexon (XON) closed up +$0.79 to $20.12. XON floats like a butterfly but, gets “bit” by trading bees. The aftermarket indication is a positive +$0.30 or +1.49% - BUY;
Juno Therapeutics (JUNO) closed up +$0.78 to $24.61 following Tuesday’s $23.83 and Monday’s $24.25 and last Thursday’s $24.01. An aftermarket indication is a negative -$0.21 or -0.09% - SELL;
Regenxbio (RGNX) closed down -$0.15 to $20.80 following Tuesday’s $20.95 (+$0.05) after Monday’s $20.90 (+$1.15) and last 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. An afterhours quote was down -$0.05 or -0.24% - Maintaining SELL;
Spark Therapeutics (ONCE) closed down -$0.02 to $52.95 following Tuesday’s $52.97 (-$0.74). Oversold as there is slowing depreciation and weakness in volume – Maintaining BUY;
Verastem (VSTM) closed down -$0.01 to $1.93 following Tuesday’s $1.94 (-$0.16) 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 positive +$0.05 or +0.26% – SELL to BUY
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.