July 28, 2017 7:45am

 

Quirky IBB dumps (-1.87%) and VIX jumps (+5.31%)

 

A pre-weekend tumble but wait for the big stumble

 

Pre-open indications: 3 BUYs and 6 SELLs

 

Critical indication ahead of “our” universe’s open!

 

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Don’t ignore this …

 

 


 

I know what a company is supposed to look like, be like, and smell like to succeed! Unless you know what happened last week; it is hard to formulate a perspective … for the new day!

 

 

Lower open expected

Dow futures are DOWN -0.19% and NASDAQ futures are DOWN -0.59%

 

U.S. stock index futures to a lower open on Friday, as the earnings overload and the GDP data release continues to keep investors busy.

European markets were lower after U.S. tech shares retreated from recent highs and investors reacted to a deluge of earnings reports.

Asian indexes closed mostly lower as investors parsed through corporate earnings in the region.

 

Data docket: GDP data for the second quarter will be the talk of the town on Friday, with the data expected to come out at 8.30 a.m. ET. The Employment Cost Index will also come out at 8:30 a.m. ET; followed by consumer sentiment at 10 a.m. ET. Minneapolis Fed President Neel Kashkari will be speaking at a Woodbury/St. Paul Chamber of Commerce event, in Oakdale.

 

In the political sphere, the U.S. Senate blocked the Republicans most recent attempt to repeal Obamacare in a floor vote early Friday, dealing another blow which yet again delayed — for the time being — the key campaign goal that eludes the GOP six months into the Trump administration. Three GOP defections — Sens. Susan Collins of Maine, Lisa Murkowski of Alaska and John McCain of Arizona — sank the measure in a 49-51 vote. McCain, who recently came back to the Senate after being diagnosed with brain cancer, cast his "no" vote to audible gasps on the chamber's floor, according to reporters there.

 

 

The cell therapy sector closed NEGATIVE on Thursday, POSITIVE on Wednesday, NEGATIVE on Tuesday, POSITIVE 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 POSITIVE with 18 decliners, 21 advancers and 4 flats;

·         Tuesday closed NEGATIVE with 29 decliners, 10 advancers and 4 flats

·         Monday closed POSITIVE with 18 decliners, 21 advancers and 4 flats;

·         Last Friday closed POSITIVE with 16 decliners, 26 advancers and 1 flats;

 

 

Henry ’omics:

The battle of the oversold and the overbought continues but, who or what is making that determination – ETFs and algorithms.

  • As I had stated in last night’s post, “Cell therapy equities’ momentum is waning and upcoming Q2 financial results will further ambiguity.”

Continuing, “Cell therapy has the potential to saving lives? It’s has been said to be true but, there are issues that contain their development and – many are self-induced!  Cell therapy equities are boom and bust – by the day and mostly by the hour!”

  • What needs to change, the belief that the value of staying the course is an overworked belief in this world of high-frequency trading, ETF exposure and the summer doldrums.

Admittedly, every cell therapy investing group is more focused on the short term as the average holding period has shrunk from years, months to days or hours — the rewards of patience are declining by the minute.

 

 

The count:

Look at the differences in the spreads as percentages and the advance/decline lines migrate……….

·         Thursday’s decliners ranged from -0.45% <OPXA> to -29.15% <CUR> in 31 equities;

·         Wednesday’s decliners ranged from -0.30% <XON> to -12.10% <CUR> in 18 equities;

·         Tuesday’s decliners ranged from -0.10% <JUNO> to -49.64% <CUR> in 29 equities;

·         Monday’s decliners ranged from -0.35% <BSTG> to -56.77% <CYTX> in 18 equities;

Versus

………… look at the declining percentage’s (%) …….

·         Thursday’s gainers ranged from +0.28%  <FCSC> to +28.71% <CAPR> in 10 equities;

·         Wednesday’s gainers ranged from +0.28%  <VSTM> to +18.85% <ISCO> in 21 equities;

·         Tuesday’s gainers ranged from +0.56%  <XON> to +2.16% <NWBO> in 10 equities;

·         Monday’s gainers ranged from +0.61%  <ATHX> to +10.22% <NWBO> in 20 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 -1.87% on Thursday and is NOT indicating for Friday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Thursday down -2.53%, with the pre-market indicating a NEGATIVE -0.1% for Friday’s pre-open;
  • The Health Care Select Sector SPDR ETF (XLV) closed down -0.69% Thursday, and is NOT indicating a for Friday’s pre-open;
  • The iShares Russell 2000 (IWM) closed down -0.64% on Thursday with a NEGATIVE pre-market -0.39% in Friday’s

 

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed down -$0.35 to $4.75. There is $8.79 in cash in the company per share – OVERSOLD – BUY;

bluebird bio (BLUE) closed down -$3.65 to $95.85 with 702. 5 K shares traded <3 month average = 1 M shares> after Wednesday’s $99.50, Tuesday’s $98.80 and Monday’s $99.85 after last Friday’s $96.05. The aftermarket indication is to the downside -$0.85 or -0.89%. As the month closes, caution becomes byline - Maintaining SELL

Capricor (CAPR) closed up +$0.29 to $1.30 following Wednesday’s $1.01 (+$0.08). After a shooting star (+40.58%) shots, the gases burn-off for this equity. It’s time to take gains. The pre-market indication is a positive +$0.02 or -2.31% - BUY to SELL;

Cellectis SA (CLLS) closed down -$0.75 to $25.21 after Wednesday’s $25.96, Tuesday’s $26.36 and Monday’s $28.62. They are about to receive the cash from their subs – Calyxt’s (IPO) offering. The aftermarket indication is a positive +$0.38 or +1.51% - BUY;

Cesca Therapeutics (KOOL) closed down -$0.18 to $3.44. KOOL the U.S. Patent and Trademark Office has awarded a new U.S. Patent, No. 9,695,394 (the ‘394 patent’), entitled “Cell Separation Devices, Systems, and Methods.” The patent was awarded to SynGen, Inc., whose cell processing assets were acquired by ThermoGenesis Corp., Cesca’s 80%-owned device subsidiary, on July 10, 2017. The patent relates to the automated isolation of rare, therapeutically critical target cells from blood, bone marrow, leukapheresis product, and other cell sources, while maintaining the viability of the cells under asceptic conditions. This advanced technology is part of KOOL’s proprietary CAR-TXpress™ platform that now integrates multi-component automation steps, including T-cell isolation, purification, culture expansion and washing, and single cassette-based automated -196°C cryopreservation and retrieval. The CAR-TXpress™ system provides a comprehensive and commercially viable, automated cellular manufacturing and control (CMC) solution for the development of CAR-T and CAR-NK therapeutics. The pre-market indication is a positive +$0.69 or +20.06%. BUY;

International Stem Cell (ISCO) closed up +$0.04 to $1.49 following Wednesday’s $1.45 (+$0.23 or +18.85%) for what reason? Icarus flew to close to the sun and shooting stars burn out – Maintaining SELL;

BioLife Solutions (BLFS) closed up +$0.02 to $3.42 with 63.4 K shares traded following Wednesday’s $3.40 (+$0.12)on solid 73.4 K share volume <3 month average = 63.5 K shares>. After modifying their existing credit facility, a new client and another good quarter – watch for an OFFERING post Q2 financial results – Maintaining SELL;

Sangamo Therapeutics (SGMO) closed down -$0.55 to $8.80. The aftermarket indication is to the downside -$0.10 or -1.14% - SELL;

Vericel (VCEL) closed flat at $3.40 with 230.2 K shares traded <3 month average = 309.4 K shares>. The aftermarket indication is to the downside -$0.05 or -1.47%. VCEL reports Q2 on 8/9 – SELL;

 

 

Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.  All investments are subject to risks. Investors should consider investment objectives.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.