June 19, 2017 7:56am
In competitive situations, rope-a-dope is used to describe strategies in which the sector lets trading fatigue set-up an offensive reaction
In five sessions, four hit the floor and one withstood the hits; time for a little dancing on the mat
And we are still in the Q2 round - the bell will ring next week
Pre-open indication: the oversold should have a pick-up
A critical indication ahead of “our” universe’s open!
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Higher open expected
Dow futures are UP +0.35% and NASDAQ futures are DOWN -0.70%
U.S. stock index futures pointed to a strong higher open on Monday, as investors awaited remarks from leading Federal Reserve officials, while keeping a close eye on news coming out of the political sphere.
European markets were lower to mix in early morning trading, as investors shifted their attention to political events across the continent.
Asian markets strengthened as markets geared up ahead of Brexit negotiations between the U.K. and the European Union and kept an eye on a deadly attack on worshipers leaving a mosque in London.
Data docket: none, however in the morning, New York Fed President William Dudley is set to meet with local business leaders at a roundtable breakfast meeting in Plattsburgh, while Chicago Fed President Charles Evans will be at the Money Marketeers of New York University on Monday evening, where he is expected to talk about current economic conditions and monetary policy.
The cell therapy sector closed NEGATIVE on Friday, Thursday and Wednesday, POSITIVE on Tuesday and NEGATIVE last Monday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Friday closed NEGATIVE with 26 decliners, 14 advancers and 3 flats;
· 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
· Last Monday closed NEGATIVE with 22 decliners, 15 advancers and 6 flats;
Remembering Friday’s closing bell newsletter, “the road ahead is barely paved. Lot of turns, bumps and potholes with more grading needed …But, no speed bumps.”
Reiterating, “The question is who and what is driving share pricing”
The IWM has been down three (3) sessions (Friday <-0.25%>, Thursday <-0.51%> and Wednesday <-0.59%) and the IBB has been down two (2) sessions (Friday <-0.36%>, Thursday <0.77%>).
Time for a rebound but, expect exit sessions – next week for the upcoming holiday, July 4th!
What did I see on Friday, the DOW closed UP +0.11% (+24.38) as the NASDAQ closed DOWN -0.22% (-13.74) … while the CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded again near 10.4 …
Last week's count - decliners versus gainers: look at the differences in the spreads ……….
• Friday’s decliners ranged from -0.41% <NWBO> to -6.67% <CAPR> in 26 equities;
• 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;
• Tuesday’s decliners ranged from -0.61% <BLCM> to -9.82% <IMUC> in 13 equities;
• Monday’s decliners ranged from -0.31% <BTX> to -7.83% <ISCO> in 22 equities;
And:
• Friday’s gainers ranged from +0.14% <KITE> to +8.11% <BLCM> in 14 equities;
• Thursday’s gainers ranged from +0.19% <CUR> to +4.69% <AST> in 10 equities;
• Wednesday’s gainers ranged from +0.40% <KITE> to +5.14% <FCSC> in 18 equities;
• Tuesday’s gainers ranged from +0.26% <CLLS> to +12.70% <AST> in 26 equities;
• Monday’s gainers ranged from +0.13% <ONCE> to +15.20% <FCSC> in 15 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 -0.36% on Friday, and did NOT indicate in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Friday up +0.32%, and is indicating a POSITIVE +0.56% In Monday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up +0.16% Friday, and indicated a POSITIVE +0.18% in Monday’s pre-open;
- The iShares Russell 2000 (IWM) closed down -0.25% on Friday, and indicating a POSITIVE +0.39% in Monday’s pre-open
Companies in my headlights:
Hard-hit cell therapy stocks will trek higher on Monday seeking a BIG rebound.
Hope resonates a prayer might help too!
While futures are not always an exact indication of market moves, their gain bolsters expectations – the oversold are ready to be taken to the overbought land.
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.
