May 24, 2017 6:52am

 

Could Wednesday be a test of strength?

What’s bugging me, is the erratic movement of ETF indexes while volume is light to the downside and mixed to the upside

 

Flat to lower open expected

Companies in my headlights:  five (5), 2 BUYS and 3 SELLS

 

While many talk about the shift in alternating sentiment, I monitor the pulse and focus of possible outcomes

But, to  my disappointment, reality turns out to be a little less appealing:

 

 

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

 

 

 

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 +0.04% and NASDAQ futures are UP +0.12%

 

U.S. stock index futures pointed to a relatively flat open on Wednesday, as investors geared up for the release of minutes from the Federal Reserve's last meeting.

European markets opened lower, extending the losses seen in Asian markets, after Moody's downgraded its credit rating for the world's second-largest economy China

Major indexes in Asia were mostly higher, after Moody's downgraded China's credit rating, and as investors awaited minutes from the U.S. Federal Reserve and an upcoming OPEC meeting.

Data docket: mortgage applications at 7.00 a.m. ET, FHFA home prices at 9.00 a.m. ET and existing home sales data at 10.00 a.m. ET.

·At the meeting in May, the Federal Open Market Committee (FOMC) decided to hold fire on raising interest rates. Investors will be combing through the documents to see if there are any indications as to when the Fed could raise rates over the course of 2017. Many analysts are currently pricing in a rate hike at its next meeting in June.

 

 

The cell therapy sector closed POSITIVE on Tuesday, NEGATIVE on Monday, POSITIVE on Friday and Thursday and NEGATIVE last Wednesday.

The cell therapy sector’s record after the last 5 days (of 43 covered companies):

·         Tuesday closed POSITIVE with 15 decliners, 25 advancers and 3 flats;

·         Monday closed NEGATIVE with 21 decliners, 19 advancers and 3 flats;

·         Friday closed POSITIVE with 15 decliners, 26 advancers and 2 flat;

·         Thursday closed POSITIVE with 13 decliners, 25 advancers and 5 flats;

·         Last Wednesday closed NEGATIVE with 38 decliners, 5 advances and 0 flats;

 

 

Remembering Tuesday’s closing bell newsletter, “Share pricing as musical chairs … If you are not listening in on this market, you might not hear the music at all.  And if you don't hear the music, how can you expect to find a sector chair when the music stops?”

  • Reiterating, “Closes are all about what will happen in the next morning’s session.”

What did I see on Tuesday, the DOW closed up +0.21% (+43.08) and The NASDAQ closed UP + 0.08% (+5.09) while volatility traded at 10.8.

  • The indexes closed hesitantly  higher while “our” universe etched-out a positive close after a neagative open and a neutral mid-day!

Yesterday’s  advance/decline line scenario of 43 SCGT & RT covered companies:   

·         The open was negative with an A/DL of 18/23 and 2 flats;

·         The mid-day was neutral with an A/DL of 20/20 and 3 flats;

·         The close was positive with an A/DL of 25/15 and 3  flats;

 

 

Look at the spreads in the next paragraph … tighter

The count - gainers: look at the differences in the spreads and advance/decline lines – look at how the numbers define volatility:

·         Tuesday’s decliners ranged from -0.24% <BCLI> to -8.54% <ISCO> in 15 equities;

·         Monday’s decliners ranged from -0.45% <BLFS> to -21.67% <BSTG> in 21 equities;

·         Friday’s decliners ranged from -0.17% <BSTG> to -6.78% <BLUE> in 15 equities;

While gainers…

·         Tuesday’s gainers ranged from +0.51% <OSIR> to +13.62% <BSTG> in 25 equities;

·         Monday’s gainers ranged from +0.28% <RGNX> to +12.77% <OPXA> in 19 equities;

·         Friday’s gainers ranged from +0.01% <HSGX> to +10.66% <QURE> in 26 equities;

 

 

What’s also bugging me, is the erratic movement of of the iShares NASDAQ Biotechnology (IBB)  ETF indexes

… The IBB did NOT indicate in Tuesday’s pre-open and closed DOWN -0.12%,  following

·         Monday’s +0.68%,

·         Friday’s -0.62%,

·         Thursday’s +1.28%,

·         Wednesday -2.27% and last

·         Last Tuesday’s +0.40%

 

 

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 down -0.12% on Tuesday, and is NOT indicating a in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Tuesday up +0.06%, is down -0.04% in the aftermarket and is NOT indicating in Wednesday pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up +0.33% Tuesday, is down -0.01% in the aftermarket and is indicating a positive +0.03% in Wednesday’s pre-open;
  • The iShares Russell 2000 (IWM) closed up +0.33% on Tuesday, and is indicating a positive +0.01% in Wednesday’s pre-open

 

 

Companies in my headlights:

AxoGen (AXGN) closed down -$0.35 to $14.90. I’m afraid of heights in this volatile market, May started at $12.80 with a high of $15.25 and a low of $11.75 while April started at $10.28 and a high of $12.20 – Maintaining SELL;

Biostage (BSTG) closed up +$0.032 (+13.62%) to $0.267. What is there to any upside, one(1) patent infringement suit followed by a a death complaint in Mass Superior Court, running-out of cash, no partner, a president with multiple “issues” related to maintaining employees and a questionable financing past compounded an uncertain future in a reverse split followed by a needed warrant exercise. Still NO validation of the Mayo Clinic collaboration in a peer reviewed article which leaves the IND in the “air” – SELL;

Cytori (CYTX) closed up +$0.12 to $1.08. The aftermarket is brave with the stock up +$0.01 or +0.93%. May started at $1.05 and saw a low of $0.94 while April started at $1.59 and saw a high of $1.72 and a low of  $1.01 and closed at $1.03. The problem is CYTX is a day traders ping-pong game, especially strong on news that trades post a day’s run-up. Monday the stock was $0.96, Tuesday $1.08 <11% in the till – an easy picking or wait a day for a penny ?>  - SELL;

JUNO Therapeutics (JUNO) closed up +$0.73 to $24.80. JUNO has appointed Jay Flatley to its Board of Directors. Mr. Flatley is Executive Chairman of Illumina (ILMA)A successful entrepreneur, Mr. Flatley brings to JUNO’s board his considerable experience building a highly successful and innovative healthcare company. He served as CEO of Illumina from 1999 to 2016, and during his tenure grew the company’s annual revenue from just over $1 million to more than $2 billion, and he oversaw the growth of the company from 20 employees to over 5,000. The aftermarket indication was +$0.19 or +0.77% - BUY;

Intrexon (XON) closed up +$0.45 to $22.93. May started at $21.03 with a high of $25.67 and a low of $19.36. SApril started at $19.37 with a high of $21.47, a low of $18.92 and ended at $20.84. The aftermarket indication was a positive +$0.57 or +2.49% - 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.