June 13, 2017 7:57am

 

Thoughts on going against the grain … which way is the sector telling investors to go?

Downside trading is telling you to go one way, take that as a sure sign you need to consider the oversold …

 

Remember, Friday is an expiration day for options – are they in the money?

After a withdrawal, there is always a need to consolidate and regain some territory

 

Pre-open indication:  three (3), 1 BUY and 2 SELLS

 

A critical indication ahead of “our” universe’s open!

Are you a subscriber?  If not – you’re missing the realities of “our” universe? 

 

 

I know what a company is supposed to look like, be like, and smell like to succeed!

 

 

Higher open expected

Dow futures are UP +0.08% and NASDAQ futures are UP +0.22%

 

U.S. stock index futures pointed to a higher open on Tuesday morning as technology stocks looked set to weigh heavy on Wall Street for the third day running.

·         “Our” investors are concerned that cell therapy stocks – could be losing momentum!

European markets were higher ahead of the Federal Reserve's meeting later this week.

Asian markets closed mostly up after tech stocks extended their losses stateside.

 

Data docket:  the release of the National Federation of Independent Business' (NFIB) small business optimism index at 6am E.T. The Fed will also begin the first day of its two-day meeting, with its interest rate decision due out tomorrow, and the latest Producer Price Indices will be released.

 

 

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

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

·         Monday closed NEGATIVE with 22 decliners, 15 advancers and 6 flats;

·         Friday closed NEGATIVE with 29 decliners, 13 advancers and 1 flat;

·         Thursday closed POSITIVE with 12 decliners, 30 advancers and 1 flat;

·         Wednesday closed NEGATIVE with 21 decliners, 16 advancers and 6 flats;

·         Last Tuesday closed NEGATIVE with 19 decliners, 18 advancers and 6 flats;

 

 

Remembering Monday’s closing bell newsletter, “headwinds abound as negative sentiment lingers, an option expiration Friday, end of month progression as the closing of quarter evolves - all play into a tightening scenario”

  • Reiterating, “Some investors and traders argue that the cell therapy cohort has and is suffering from immaturity and constant distress from “downturn’itis” after what has been a slippery slope for months.”

What did I see on Monday, the DOW closed DOWN -0.17% (-36.30) as the NASDAQ closed DOWN -0.52% (-32.45) … with the CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded near 11.48 up +7.29% after … Friday traded near 10.6.

  • Beaten-down cell therapy stocks could or better be poised for gains after two down sessions, an adnace (last Thursday) which followed another two down sessions  , as U.S. stock futures edged higher ahead of the start of a Federal Reserve meeting.

The past two days in the stock market have been frightening for some investors, but the current decline was likely needed to readjust expectations – as the month and the quarter willow down.

  • The question investors must now face is, are the oversold – poised enough to make a comeback?

 

It’s a question for traders – why would we be buyers?

 

 

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 -0.30% on Monday, and indicates a POSITIVE +0.27% in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Monday down -0.13%, was down -0.12% in the afterhours and is NOT indicating in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed down -0.13% Monday, and is NOT indicating in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) closed down -0.16% on Monday, and indicating a POSITIVE +0.18% in Tuesday’s pre-open

 

 

Companies in my headlights:

… It is still about sentiment and momentum as the oversold battle to become the overbought …

… On a broad scale, TOO MANY sector equities are OVERSOLD …  

Brainstorm Cell Therapeutics (BCLI) closed up +$0.15 to $4.10. BCKI has been awarded a new grant of approximately $2.1 million by the Israel Innovation Authority (IIA) (formerly called "the Office of the Chief Scientist (OCS)". The funds will support the development of NurOwn®, BrainStorm's innovative mesenchymal stem cell-based platform for the treatment of neurodegenerative diseases. ANY news is speculation and momentum moving – BUY;

Juno Therapeutics (JUNO) closed UP +$0.62 to $22.30 after Friday’s $21.68 (-$0.68) following Thursday’s $22.36 (-$1.37) after Wednesday’s $23.73 (-$0.47) following last Tuesday’s $24.20 (+$0.81). The aftermarket indication is a negative -$0.15 or +0.67% - Maintaining SELL;

Kite Therapeutics (KITE) closed down -$2.01 to $85.78 after Friday’s $87.79 (+$1.12) following Thursday’s $86.67 (+$4.57) after Wednesday’s $82.10 (+$5.46) following last Tuesday’s $76.64 (+$3.03).The aftermarket indication was a negative -$0.29 or -0.34% – 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.