May 31, 2017 7:15am
Looking and hoping for the upside
But, I got a feelin’ it won’t be so …
Too much sellin’ going –on
Mixed open expected
Companies in my headlights: six (6), 4 BUYS and 2 SELL
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 +0.08% and NASDAQ futures are UP +0.23%
U.S. stock index futures pointed to a relatively flat open Wednesday, as investors geared up for more data, while keeping a close eye on what's happening in the political sphere globally.
European markets were mixed as political uncertainty took center stage once again
A YouGov poll showed late Tuesday that U.K. Prime Minister Theresa May could fall short of winning an overall majority at next week's general election. She decided to call a snap election to strengthen her parliamentary position and have more power in Brexit negotiations with the EU but her gap from the Labour party has significantly narrowed over the past few days.
Asia markets closed the session mixed after cautious trade as the British pound fell on new poll results ahead of the U.K. election and on better than expected official PMI figures out of China.
Data docket: Chicago PMI figures, due out at 9.45 a.m. ET, followed by pending home sales, expected at 10.00 a.m. ET, and release of the Beige Book, slated to come out at 2.00 p.m. ET.
The cell therapy sector closed NEGATIVE on Tuesday; Monday was a holiday, NEGATIVE on Friday, Thursday and last Wednesday.
The cell therapy sector’s record after the last 5 days (of 43 covered companies):
· Tuesday closed NEGATIVE with 29 decliners, 10 advancers and 4 flat;
· Monday was Memorial Day and the U.S. markets were closed;
· Friday closed NEGATIVE with 28 decliners, 11 advancers and 4 flats;
· Thursday closed NEGATIVE with 24 decliners, 17 advancers and 2 flats;
· Last Wednesday closed NEGATIVE with 21 decliners, 16 advancers and 6 flats;
Remembering Tuesday’s closing bell newsletter, “sector gets slammed down, again. Is this the normal indicator for the summer months?”
- Reiterating, “A combination of the tough market environment, lack of news and long clinical path ahead drive share pricing downdrafts.”
What’s my gospel for today:
Investors are ignoring risk, over-valuation and are under-capitalized!
Over the past three years I have observed only depreciating returns and it’s just a matter of time before they realize they have been “grifted” – as I stated last night.
As I had stated, “Momentum will help you recognize that the sector is NOT dead yet; while distinct trend lines rise like the phoenix from the ashes! “
· I couldn’t have been more wrong – it happened – the sector dumped!
· And I am sticking by my statement that … SOME … sector equities are OVERSOLD!
To summarize the requirements for investing in …”our” universe and this environment … decisions are made not based on fundamentals … but of ignorance of the true risk and displaced trust in the supposed fact of fiduciary responsibilities!
What did I see on Tuesday, the DOW closing DOWN -0.24% (-51.08) as the NASDAQ also closed DOWN -0.11% (-7.01) … while the CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded near 10.2 …
The count - gainers: look at the differences in the spreads and advance/decline lines – look at how the percentage numbers define volatility.
The highs of the decliners I believe have peaked while gainers need some room to grow exponentially …
· Tuesday’s decliners ranged from -0.37% <XON> to -7.22% <RGNX> in 29 equities;
· Friday’s decliners ranged from -0.50% <BCLI> to -11.41% <ISCO> in 28 equities;
· Thursday’s decliners ranged from -0.55% <CLLS> to -8.46% <MESO> in 24 equities;
· Last Wednesday’s decliners ranged from -0.03% <OPXA> to -4.46% <CAPR> in 21 equities;
While gainers…
· Tuesday’s gainers ranged from +0.04% <CLLS> to +14.86% <NWBO> in 10 equities;
· Friday’s gainers ranged from +0.25% <BSTG> to +5.63% <VCEL> in 11 equities;
· Thursday’s gainers ranged from +0.06% <BLUE> to +4.79% <CAPR> in 17 equities;
· Last Wednesday’s gainers ranged from +0.16% <ONCE> to +8.46% <NWBO> in 16 equities;
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 -1.36% on Tuesday, and indicating a NEGATIVE -0.48% in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Tuesday down -1.83% and is NOT indicating in Wednesday pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down -0.14% Tuesday, and is NOT indicating in Wednesday’s pre-open;
- The iShares Russell 2000 (IWM) closed down -0.79% on Tuesday, and is indicating a POSITIVE +0.15% in Wednesday’s pre-open
Companies in my headlights – I am not lazy in defining any upside or downside, I just don’t see any input other than momentum.
The issue: OVERSOLD …
Bellicum Pharmaceuticals (BLCM) closed down -$0.49 to $11.34 after Friday’s $11.83 (-$0.36) after Thursday’s $12.19 (-$0.29). The aftermarket indication is a positive +$0.1172 or +0.99%. Oversold – Maintaining BUY;
bluebird bio (BLUE) closed down -$1.10 to $78.70 after Thursday’s $79.80 (+$0.05) following Wednesday’s $79.75 (-$0.60). The aftermarket indication is a POSITIVE +$0.913 or +1.16% - BUY;
Juno Therapeutics (JUNO) closed down -$0.19 to $23.11 following Friday’s $23.20 (-$2.22) after Thursday’s $25.52 (+$0.19). The aftermarket indication is a POSITIVE +$0.90 or +3.86% - Maintaining BUY;
Kite Pharma (KITE) closed down -$0.73 to $72.38 following Friday’s $73.11 (-$1.80) after Thursday’s $74.91(+$3.25). The aftermarket indication is a POSITIVE +$0.22 or +0.30%. Also Oversold - Maintaining BUY;
Organovo (ONVO) closed up +$0.04 to $2.98 following Friday’s $2.94 (+$0.09) after Thursday’s flat at $2.85. The aftermarket indication is a NEGATIVE -$0.08 or -2.68% - BUY to SELL;
Sangamo Therapeutics (SGMO) closed down -$0.40 to $6.85 following Friday’s $7.25 (-$0.55). The aftermarket indication is a NEGATIVE -$0.15 to -2.07% - 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.
