June 22, 2017 7:38am

 

On an upside, wing and more than a prayer

The IBB foretells a +0.29% and stays as strong

 

I’d say, look up “black swans”

 

Pre-open indication:  seven (7), 3 BUY and 4 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 -0.05% and NASDAQ futures are DOWN -0.06%

 

U.S. stock index futures pointed to a flat to slightly lower open on Thursday, as investors geared up for a cluster of data releases.

European markets moved lower during mid-morning deals, as investors reacted to depressed oil prices and ongoing weakness in commodities-related sectors.

Asian markets closed sideways after cautious trade as oil prices declined further.

 

Data docket: jobless claims are due out at 8:30 a.m. ET, followed by the FHFA House Price Index at 9 a.m. ET and the Kansas City Fed Manufacturing Index, expected at 11 a.m. ET.

 

 

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

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

·         Wednesday closed POSITIVE with 13 decliners, 27 advancers and 3 flats;

·         Tuesday closed barely NEGATIVE with 21 decliners, 20 advancers and 2 flat;

·         Monday closed POSITIVE with 7 decliners, 35 advancers and 1 flat;

·         Friday closed NEGATIVE with 26 decliners, 14 advancers and 3 flats;

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

 

 

Remembering Wednesday’s closing bell newsletter, “some substantial gains as indexes also sing the tune, IBB up +4.12%, XBI up +4.71% as the XLV trails at +1.27%.”

  • Reiterating, “Time element of growth is momentum based as pricing expectations are still in jeopardy as to the context of a sustainable breakout.”

As I had stated last night, “ENJOY the high, next week will be the determinant as the month, quarter ends and many traders retreat to the July 4th week … EARLY!”

 

My concerns continue, the IBB (is up +7.8% in three (3) days and its ability to stay UP beyond the pre-market indication +0.29%…

·         Wednesday traded UP +4.12%

·         Tuesday traded UP +1.27%

·         Monday +2.41%

·         Friday -0.36%

·         Last Thursday -0.77%

·         The previous Wednesday +0.56%

·         The previous Tuesday +0.41%

And the Nasdaq Composite is just 1.4% shy of its record close …

 

 

What did I see on Wednesday, the DOW closed DOWN -0.25% (-53.14) as the NASDAQ closed UP +0.74% (+45.92) … while the CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded again near 10.75 – DOWN -1.01% following Tuesday trading near 10.86% - UP +4.73%.

 

 

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 +4.12% on Wednesday, and indicated a POSITIVE +0.28% in Thursday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Wednesday up +4.71%, and is indicating a POSITIVE +0.61% In Thursday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up +1.27% Wednesday, and is NOT indicating in Thursday’s pre-open;
  • The iShares Russell 2000 (IWM) closed down -0.25% on Wednesday, and indicating a NEGATIVE -0.11% in Thursday’s pre-open

 

 

Companies in my headlights:

………. We are back to measuring potential momentum for the sector …….

Athersys (ATHX) closed up +$0.18 to $1.68. June started at $1.42; saw a high of $1.68 and a low of $1.42 having that price three in fifteen sessions. A 12% jump in one day – being a non-believer, I’d jump. The aftermarket was negative -$0.01 or -0.6% - SELL;

bluebird bio (BLUE) closed up +$7.30 to $120.30. June started at $79.20; saw a high of $120.30 and a low of $79.20.  I’ll go with the numbers but, it is getting very “rich” as well. The aftermarket indication is a positive +$1.05 or +0.87% - BUY;

Juno Therapeutics (JUNO) closed up +$1.77 to $26.43 following Tuesday’s $24.66 (+$0.46) after Monday’s $24.20 (+$0.91). June started at $24.50; saw a high of $26.21 and a low of $21.68 having seen $24.20 twice in ten sessions.  The aftermarket indication was a positive +$0.27 or +1.02% - Maintaining BUY;

Kite Pharma (KITE) closed up +$1.92 to $91.21 following Monday’s $89.29 (+$1.44). June started at $74.66; saw a high of $89.71 and a low of $73.61.  KITE’s been getting “rich” and it might be time to lighten the “load”. The aftermarket indication is a negative -$0.21 or -0.23% - BUY to SELL;

Pluristem (PSTI) closed up +$0.06 to $1.38 after Tuesday’s flat at $1.32. The aftermarket indication is a positive +$0.03 or +2.27% as Chinese based Innovative Medical walked away from a $30 M investment that was supposed to fund late-stage trials, so PSTI stays in control of its stock – BUY;

Regenxbio (RGNX) closed up +$0.95 to $20.50 following Tuesday’s $19.55 (+$0.45) after Monday’s $19.10 (+$0.60). June started at $18.00; saw a high of $20.10 and a low of $18.00 having seen $19.10 twice in four sessions. It’s getting a bit “rich” – a 10% premium in four sessions is tempting to traders – Maintaining SELL;

Sangamo Therapeutics (SGMO) closed down -$0.05 to $8.15 after Tuesday’s $8.20 (+$0.25) following Monday’s $7.95 (+$0.50). June started at $7.00; saw a high of $7.95 and a low of $7.00 having seen $7.20 twice in twelve sessions.   SGMO announced an offering of 10 M common stock priced at $7.25and the aftermarket is off -$0.80 or -9.76% in the pre-market – Maintaining SELL;

 

 

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.