April 27, 2017 8:16am
… Stocks saw some continued height on Wednesday
After three (3) positive closes in a row and five (5) in the last six (6) sessions
… Will this trend continue to be your friend or just a short-term acquaintance?
I’d be cautious … confluemce is ahead!
Slightly higher open expected
Pre-open indications: eight (8) – 5 SELLS, 3 BUYS – portfolio safety and upside are my theme even if it means being early and leaving some money on the table
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 +0.15% and NASDAQ futures are UP +0.21%
U.S. stock index futures pointed to a slightly higher open on Thursday morning as traders awaited a huge day of earnings and data.
Europe markets were lower as investors waited to hear from European Central Bank President Mario Draghi and digested fresh corporate earnings.
Asia markets closed mostly higher, following the lower close on Wall Street as investors parsed details on U.S. President Donald Trump's highly-anticipated tax reform plans.
Data docket: durable goods and advance economic indicators are set to come out at 8:30 a.m. ET. Pending home sales and housing vacancies are due at 10:00 a.m.
The cell therapy sector closed POSITIVE on Wednesday, Tuesday and Monday, NEGATIVE on Friday and POSITIVE last Thursday.
The cell therapy sector’s record after the last 5 days (of 43 covered companies):
· Wednesday closed POSITIVE with 7 decliners, 32 advancers and 4 flats;
· Tuesday closed POSITIVE with 11 decliners, 28 advancers and 4 flats;
· Monday closed POSITIVE with 10 decliners, 32 advancers and 1 flat;
· Friday closed NEGATIVE with 35 decliners, 5 advancers and 3 flats;
· Last Thursday closed POSITIVE with 14 decliners, 27 advancers and 2 flats;
Remembering Wednesday’s closing bell newsletter, “jockeying through to another positive sector close. The sector started to wobble from weakness to neutrality to strength.”
- Reiterating, “What had investors been expecting – a longer trend?”
What did I see on Wednesday, the DOW closed down -0.10% while the NASDAQ closed flat -0.00 … adding to what I said yesterday, emotional influence takes its toll, but investors need to be careful of this newest apex while volatility traded near 10.8 again!
What else did I see: Wednesday’s ranges –gainers overwhelmed the decliners while there was a much lower range in gainers compared to the decliners:
… Decliners ranged from -0.51% <VTGN> to -3.73% <MDXG> in 7 equities;
… Gainers ranged from +0.32% <KOOL> to +30.07% <NWBO> in 32 equities;
As I had stated, I have left money on the table – sentiment might be strong for a couple of days, but fragile in the short-term!
I am on message - watch for the downside by Friday --- be LONG over a weekend is DANGEROUS ...
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 Wednesday up +0.29% and is indicating a negative -0.14% in Thursday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Wednesday down -0.04% and is indicating a negative -0.11% in Thursday pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up +0.55% Wednesday and is NOT indicating in Thursday’s pre-open;
- The iShares Russell 2000 (IWM) closed up +0.51% on Wednesday and is is indicating a positive +0.19% Thursday’s pre-open
Companies in my headlights - There is NO market timing but there are indications to consider!
Asterias Biotherapeutics (NYSEMKT: AST) closed up +$0.30 to $4.05 after Tuesday’s $3.75 (+$0.35) following Monday’s $3.40 (+$0.30). April ranged from $2.85 to $3.25 <excepting Monday>, AST announced P2 results that demonstrated the potential of AST-VAC2 allogeneic (non-patient specific) dendritic cell cancer vaccine to achieve promising results in its upcoming P1/2a study in non-small cell lung cancer and to potentially be developed for the treatment of other types of cancer. The aftermarket indication is +$0.25 or +6.17% – Maintaining BUY;
bluebird bio (BLUE) closed up +$0.90 to $88.65 following Tuesday’s $87.75 (+$2.10) after Monday’s $85.65 (+$3.25). Traders always get “antsy” when BLUE pops, do they stay or do they go – when I see &6.00 in an open till – BUY to SELL;
Cellectis SA (CLLS) closed up another +$0.26 to $23.83 after Tuesday’s $23.57 (+$0.26) following Monday’s $23.31 (+$0.66) following Friday’s $22.65 after last Thursday’s $23.00 ($0.87). I am NOT a “stayer” as traders usually drain the well. There is $1.87 in the till since 3/18 and the chart is “peaky” – Maintaining SELL;
Intrexon (XON ) closed UP +$0.20 to $21.33. April has been a good month for XON having started at $19.37 but, in the past seven (7) sessions there is $2.00 or 9% of upside in the till – SELL;
Kite Pharma (KITE) closed up +$2.23 to $82.80 and is up +$0.57 or +0.69% in the aftermarket. KITE started the month at $78.22 and in the past four (4) sessions there is $3.30 or 3.9% in the till; is it worth trading? - BUY
Juno Therapeutics (JUNO) closed up +$0.38 to $25.10 following Tuesday’s $24.95 (+$0.13) after Monday’s $24.82 (+$1.03). April ranged from $22.24 to $24.95. JUNO closed Friday at $23.79 (-$1.16) after Thursday’s $24.95 (+$0.34) after Wednesday’s $24.61 (+$0.78) following last Tuesday’s $23.83. April 13th the stock was $24.01, April 4th, the stock was $23.05 following March 24’s $20.20. The aftermarket indication is a positive +$0.38 or +1.51. SELL to BUY;
Mesoblast (MESO) closed up +$0.55 to $12.34 following Tuesday’s $11.78 (+$0.20) after Monday’s $11.58 (+$0.38). A new high, as April ranged form $8.94 to $11.61 <excluding Monday>. Overbought – Maintaining SELL;
Spark Therapeutics (ONCE) closed up +$0.32 to $57.24 following Tuesday’s $56.92 (+$2.08) after Monday’s $54.84 ($2.34). April ranged from $49.66 to $54.12. ONCE closed Friday at $52.50 (-$1.62) after Thursday’s $54.12 (+$1.17) on low volume <99.9 K versus the month average of 294 K shares> following Wednesday’s $52.95 (-$0.02) after last Tuesday’s $52.97 (-$0.74). There is approximately $7.00 (12.2%) since 4/11 in the till - 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.
