RegMed Investors’ (RMi) pre-open indications – advise raising cash!

June 14, 2017 6:56am

Irregular patterns are conflicting with fundamentals, low volume and mostly small pricing movement

… The wild card is external sector issues, the Fed and political turmoil re Comey, Trump, Sessions and the Russian connections

One symptom is related to quantitative and computer trading while the real issue is that FAKE news draws away our attention!

Pre-open indication:  seven (7), 4 BUYS and 3 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 +0.11% and NASDAQ futures are UP +0.1%

U.S. stock index futures pointed to a higher open on Wednesday morning after markets closed at new highs Tuesday following a rebound in technology stocks. Traders will now be looking ahead to the second day of the Federal Reserve's two-day policy meeting, in which it is expected to raise interest rates and announce its plans for the U.S. balance sheet. The announcement is due at 2pm E.T.

European markets edged higher as investors cautiously awaited the latest monetary decision by the U.S. Federal Reserve.

Asian markets closed mostly lower as China data came in mostly in line with expectations and markets awaited the Federal Reserve's decision on monetary policy.

Data docket: economic data on the consumer price index, retail sales and business inventories.

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

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

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

·         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

Remembering Tuesday’s closing bell newsletter, “another I told you so …

• Reiterating, “the short-term oversold had their acquittal. Even as the sector rises, there were few easy or juicy trades … as I had stated, “Downside trading is telling you to go one way, take that as a sure sign you need to consider the oversold.”

What did I see on Tuesday, the DOW closed UP +0.44% (+92.80) as the NASDAQ closed UP +0.73% (+44.90) … while the CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded near 10.38 … following Monday’s 11.48 – up +7.29%

• I am having a hard time finding sustainable share pricing companies at attractive valuations.

Fear not, this is not the only obstruction in our path.

• Traders, investors, you and I are constantly looking for a sector stocks by identifying and measuring factors, watching advance/decline lines, measuring momentum, volume, volatility as affecting “our” universe, writing blogs and reading anything I can get my hands on – and what do I get …

More frustrated at my 43 covered companies that - NONE – can break-out and stay above the pack for longer than a week – other than … BLUE and a maybe of JUNO and KITE (which saw some seepage!

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 up +0.41% on Tuesday, and indicates a POSITIVE +0.26% in Wednesday’s pre-market;
• The SPDR S&P Biotech ETF (XBI) closed Tuesday up +1.14%, and is NOT indicating in Wednesday’s pre-market;
• The Health Care Select Sector SPDR ETF (XLV) closed up +0.21% Tuesday, and is NOT indicating in Wednesday’s pre-open;
• The iShares Russell 2000 (IWM) closed up +0.51% on Tuesday, and indicating a POSITIVE +0.29% in Wednesday’s pre-open

Companies in my headlights:

… There is NO smooth saling in these currents …

Asterias Biotherapeutics (NYSEMKT: AST) closed up +$0.40 to $3.55 on news of 9-month follow-up data from the AIS-A 10 million cell cohort in the ongoing SCiStar P1/2a clinical trial results shows three of six (50%) patients have now recovered two levels of motor function and previously-announced improvements in arm, hand and finger function at 3-months and 6-months following administration of AST-OPC1 have been confirmed and further increased at 9-months. . The pre-market indication is a positive +0.25 to $7.95% - Maintaining BUY;

Bellicum Pharmaceuticals (BLCM) closed down -$0.06 to $9.85. June started at $10.93 with a high of $10.99 and a low of $9.85. The aftermarket is a negative -$0.10 or -1.02% - SELL;

BioTime (NYSEMKT: BTX) closed up +$0.22 to $3.38. BTX’s Renevia system succeeded in meeting the main goal of a pivotal European trial for facial wasting associated with treatment for HIV, putting it on track to file for European approval this year. The 47 patients in the study were suffering from HIV-associated facial lipoatrophy, an abnormal loss of fat from the face that gives people a gaunt, sunken-face appearance. It can be caused by the raft of antiviral medicines used by HIV patients to keep the virus in check. BTX is also the mothership of AST. The aftermarket indicates a positive +$0.12 or +3.55% - BUY;

bluebird bio (BLUE) closed up +$2.80 to $112.60. June has been a great month starting at $79.20 with a high of $112.60, a low of $79.20 with the solid volume that goes with strength. However, strength has been the code word to SELL. The pre-market indication is a negative -$0.15 or -0.14% - SELL

Brainstorm Cell Therapeutics (BCLI) closed up +$0.17 to $4.27 following Monday’s $4.10 (+$0.15) and news of a new grant of approximately $2.1 million by the Israel Innovation Authority (IIA). June started at $3.90 with a high of $4.27 and a low of $3.90, there was a fall back to $3.95 on 6/9. Many have ridden the upside – today but, be prepared for the down by Friday at the latest –BUY was on news, SELL on strength;

Juno Therapeutics (JUNO) closed UP +$0.29 to $22.59 following Monday’s $22.30 (+$0.62) after Friday’s $21.68 (-$0.68) following Thursday’s $22.36 (-$1.37) after the previous Wednesday’s $23.73 (-$0.47) and Tuesday’s $24.20 (+$0.81) – Maintaining SELL;

Kite Therapeutics (KITE) closed UP +$3.57 to $89.35 following Monday’s $85.78 (-$2.01) after Friday’s $87.79 (+$1.12) following Thursday’s $86.67 (+$4.57) after last Wednesday’s $82.10 (+$5.46) and the previous Tuesday’s $76.64 (+$3.03).The aftermarket indication was a positive +$0.12 or +0.13% – 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.