June 15, 2017 8:16am

 

I have mixed feelings about this market and am unable to choose between opposing actions

 

And I am definitely not a take it until I sort it out "person"

 

Pre-open indication:  three (3), 0 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!

 

 

Lower open expected

Dow futures are DOWN -0.45% and NASDAQ futures are DOWN -1.10%

 

U.S. stock index futures pointed to a lower open on Thursday morning as traders reacted to the Federal Reserve's latest policy decision and technology stocks slumped for the second time this week.

·  As anticipated, the Fed hiked interest rates by a quarter of a percent, but its weaker-than-expected inflation numbers prompted worry among investors.

European markets moved lower as investors digested comments from the U.S. Federal Reserve and waited to hear from the Bank of England. The Swiss National Bank left its rate unchanged.

Asian equities closed mostly lower after the U.S. Federal Reserve raised interest rates for the second time this year, as was widely expected by markets.

 

Data docket: includes jobless claims, the Philadelphia Fed manufacturing outlook survey, the Empire State manufacturing survey, and import and export prices. Later in the morning, industrial production figures, the housing market index and natural gas inventory numbers will also be released.

 

 

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

The cell therapy sector’s record over the last 6 sessions (of 43 covered companies):

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

·         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;

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

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

 

 

Remembering Wednesday’s closing bell newsletter, “where good news goes to die.”

  • Reiterating, “Traders and traders are chewing on the role of speculation when ETFs and algorithms bend the indexes.”

As I had stated in Wednesday’s pre-open’s investor’s newsletter … “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!”

 

Investing in this "trading only" market will never be safe as I see an emphasis on short-term holding!

  • And risk increases the longer we hold stocks. This means we no longer can reassure ourselves that trials will render positive results beyond P2 clinicals.

Let’s not forget that on Friday – options expire.

 

 

What did I see on Wednesday, the DOW closed UP +0.22% (+46.09) as the NASDAQ closed DOWN -0.41% (-25.48) … while the CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded again near 10.6 … following Monday’s 11.48 – up +7.29%,

  • Yesterday, I was 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!

 

 

Yesterday's count - decliners versus gainers: look at the differences in the spreads ……….

•   Wednesday’s decliners ranged from -0.09% <BSTG> to -16.83% <IMUC> in 19 equities;

•   Wednesday’s gainers ranged from +0.40% <KITE> to +5.14% <FCSC> in 18 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 up +0.56% on Wednesday, and indicates a NEGATIVE -0.54% in Thursday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Wednesday up +0.65%, and is indicating a NEGATIVE -0.74%in Thursday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up +0.48% Tuesday, and is indicating a NEGATIVE -0.74% in Thursday’s pre-open;
  • The iShares Russell 2000 (IWM) closed down -0.59% on Wednesday, and indicating a NEGATIVE -1.20% in Thursday’s pre-open

 

 

Companies in my headlights:

… I am still anxious …

bluebird bio (BLUE) closed down -$0.55 to $112.05 after Tuesday’s $112.60 (+$2.80). 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 -$1.055 or -0.94% - Maintaining SELL

Juno Therapeutics (JUNO) closed UP +$0.54 to $23.13 after Tuesday’s $22.59 (+$0.29) following Monday’s $22.30 (+$0.62), Friday’s $21.68 (-$0.68), last Thursday’s $22.36 (-$1.37) after the previous Wednesday’s $23.73 (-$0.47) and Tuesday’s $24.20 (+$0.81). The aftermarket indication is a negative -$0.03 or -0.13% – Maintaining SELL;

Kite Therapeutics (KITE) closed UP +$0.36 to $89.71 after Tuesday’s $89.35 (+$3.57) 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 negative -$3.16 or -3.52% – 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.