June 16, 2017 8:19am

 

Triple witching" expiration of futures and options could make the sector and market volatile, particularly late in the day

Expiration is a short-term event  

 

But, I believe we have seen the sector’s worst already

 

The pre-market IBB indication is -0.54%

 

Pre-open indication:  one (1) review - Biostage (BSTG)

 

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 +0.10% and NASDAQ futures are UP +0.18%

 

U.S. stock index futures pointed to a higher open on Friday as technology stocks attempted to come back from its latest pullback.

European markets were higher as investors digested news of more money for Greece and focused on wider political events.

Asian markets closed cautiously higher after the Bank of Japan kept its policy unchanged and following the declines in tech stocks stateside.

 

Data docket: will see the release of housing starts, Atlanta Fed Business inflation expectations, consumer sentiment and oil rig count. The Fed's Dallas President Robert Kaplan is also due to speak Friday.

 

 

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

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

·         Thursday closed NEGATIVE with 31 decliners, 10 advancers and 2 flats;

·         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;

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

 

 

Remembering Thursday’s closing bell newsletter, “the pressure is still on as the sector continues to tumble.”

  • Reiterating, “The question is – will they come back …? Breadth indicators are down and diving.”

Let’s not forget that – options expire today. The expiration triggers trades in index futures, options and the underlying stocks,

 

Today's "triple witching," or concurrent expiration of options and futures on stock indexes, doesn't currently look to be projecting a TOO ONEROUS negative or positive moves.

 

 

What did I see on Thursday, the DOW closed DOWN -0.07% (-14.06) as the NASDAQ closed DOWN -0.47% (-29.39) … while the CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded again near 11 …

 

 

The count - decliners versus gainers: look at the differences in the spreads ……….

•   Thursday’s decliners ranged from -0.60% <HSGX> to -9.67% <CAPR> in  31 equities;

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

And:

•   Wednesday’s gainers ranged from +0.40% <KITE> to +5.14% <FCSC> in 18 equities;

•   Thursday’s gainers ranged from +0.19%  <CUR> to +4.69% <AST> in 10 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 -0.77% on Thursday, and indicates a NEGATIVE -0.1% in Friday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Thursday down -1.36%, and is indicating a …. In Friday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed down -0.10% Thursday, and is indicating a …. % in Friday’s pre-open;
  • The iShares Russell 2000 (IWM) closed down -0.51% on Thursday, and indicating a POSITIVE +0.09% in Friday’s pre-open

 

 

Company in my headlights:

 

Biostage (BSTG) closed FLAT at $0.00 to $0.33 <down from Q1/17's $0.87 or Q1/16's $2.60 and Q1/15's $3.47> . BSTG presents at the Marcum MicroCap Conference; so what will be the message … with so many questions

 

  • The IND slated for Q3/17 per the press release is NOW slated for “before the end of 2017”;

 

  • What the CEO SAYS concerning the $100 M suit re a terminal death complaint;

 

  • What little cash they do have or will be to pay for lawyers as D&O insurances don’t advance funds;

 

 

  • Doesn’t management and its BOD have a fiduciary responsibility to shareholders;

 

  • What issues or payments and support to Dr. Macchiarini’s from the company will come to light and cloud  their “distancing” from HART now Biostage’s direct involvement;

 

  • The “proof of concept” peer review article with collaborator Mayo Clinic has yet to be published – 15 months LATE, has it become a surgery paper to refrain from disclosing the deficiencies of the pig surgeries;

 

  • How many of the past executives and soon to be deposed will provide support for the company’s “position” after being summerialy dismissed;

 

  • Why were the pathology reviews NOT overviewed by respected medical and "non-aligned authories”;

 

  • Maybe the BOD should learn from the UBER findings report about certain management figures;

 

  • Have “former” executives been subjected to physical threats and verbal abuse over scientific findings;

 

  • NASDAQ listing is still up in the air as a hearing has been requested – for what and WHY;

 

  • Cash is dwindling with NO reverse split or warrant exercise;

 

  • Q2 reporting is coming closer;

 

  • The lights will come on re BSTG’s cash position, payment deferral has been a quarterly practice to hype monetary liquidity:

 

​............  Is BANKRUPCY, the next step with the lights going out? ....................

 

As a journalist, we have to write what is best for investors to know …

 

 

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.