August 23, 2017 7:29am

 

Yesterday, the IBB +1.92%, the XBI +2.39%, The XLV +1.21% and the IWM +1.08% were up as the VIX was down -13.95% and sector volume was below even normal

 

… With a “happy” high, a low usually follows

 

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Pre-open indications:  3 BUYs and 2 SELLs

 


 

Critical pre-market indications ahead of “our” universe’s open!

 

 

Weak and lower open expected

Dow futures are DOWN -0.15% and NASDAQ futures are DOWN -0.18%

 

U.S. stock index futures pointed to a slightly lower open on Wednesday, as investors awaited key economic data releases ahead of an important monetary policy symposium at Jackson Hole later on this week.

European markets were mixed, as traders paused for breath after a global rally spurred by gains for tech stocks in the U.S.

Asian indexes put in mixed performances following yesterday’s U.S. equity  rally while the dollar lost ground following comments from President Donald Trump. The dollar lost ground after President Trump warned of a government shutdown if he didn't get to build a proposed border wall. Toshiba began talks with Western Digital, according to reports. Trade in Hong Kong was canceled as typhoon Hato approached

 

Data docket: the flash US composite purchasing managers' index (PMI) due out at 9.45 a.m. ET, which will be followed by new home sales, set to come out at 10.00 a.m. ET. Mortgage applications are set to come out at 7.00 a.m. ET.

Political issues that affect the trading day: During his speech on Tuesday, Trump defended the response he gave in relation to the white supremacist-organized rally seen in Virginia recently, on top of discussing plans to build a border wall between the U.S. and Mexico, and the country's future relationship with NAFTA.

 

 

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

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

·         Tuesday closed POSITIVE with 11 decliners, 28 advancers and 4 flats;

·         Monday closed NEGATIVE with 20 decliners, 14 advancers and 9 flats;

·         Friday closed NEGATIVE with 23 decliners, 17 advancers and 3 flat;

·         Thursday closed NEGATIVE with 30 decliners, 9 advancers and 4 flats;

·         Last Wednesday closed NEUTRAL with 21 decliners, 21 advancers and 1 flat;

 

Henry ’omics:

As I had stated in Tuesday evening’s post, “… the sector bounces back … A response to speculation and oversold conditions. While sentiment is overlooked and volume is still very low.  As I had stated on Tuesday a.m., “buy the oversold at a bottom and bid’em up to exit as many become overbought.”

 

I get VERY nervous when I see Icarus" "indexes fling too high on minimal volume ...!

 

 

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 +1.92% on Tuesday and is NOT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Tuesday up +2.39% and is NOT indicating in Wednesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up +1.21% Tuesday and is NOT indicating in Wednesday’s pre-open;
  • The iShares Russell 2000 (IWM) closed up +1.08% on Tuesday and is indicating a NEGATIVE -0.41% pre-open on Wednesday

 

 

Q2/17 reporting for … to date:

Regenerative Medicine Earnings Scorecard - Q2/2017 - to date … http://www.regmedinvestors.com/articles/9841

 

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed up +$0.05 to $4.65 on minimal volume (79.3 K share volume) after Monday’s $4.60 (-$0.20) also on minimal volume <77.1 K versus the 3 month average = 199.8 K shares>. AGTC hasn’t been this low, the Q results are late; what are they waiting for? - Maintaining BUY;

Biostage (BSTG) makes yet another low of -5.27% or -0.0148 to $0.26 after being down -10.44% to $0.25, a far cry from Q1/17’s start at $0.87, Q1/16’s $2.60, Q1/15’s $4.43 … a “walking dead” company who can’t even get an IND filed as their proof of concept was found “unable to be filed” having burned through $30 M and whose current +$3 M funding is all about salary continuation with a new development “tunnel ”! And I was initially their biggest supporter … Maintaining SELL;

Mesoblast (MESO) closed down -$0.15 to $6.74. Mesoblast outlined potential pathway to accelerated market entry for MPC-150-IM in Advanced Chronic Heart Failure: based on cumulative clinical results to date and the serious and life-threatening nature of this disease, MESO believe there is a pathway for accelerated entry of this product candidate into the market to provide a paradigm shift in treatment. Top line results from the trial in end-stage advanced CHF patients are expected in Q1 2018 - BUY;

Cellectis SA (CLLS) closed up +$1.03 to $24.23 after Monday’s $23.20 (+$1.18). Getting a little short-term rich. Friday was priced at $22.02 following Thursday’s $21.82 and August started at $23.66. – BUY to SELL;

Intrexon (XON) closed up +$0.43 to $17.82. With the waning of the Zika virus, the attention is being diminished to the current needs of the population; the aftermarket is a negative -$0.14 or -0.89% - SELL;

MiMedx (MDXG) was up +$0.47 to $17.34. The issue is XON is getting fat as four days ago; the shares were priced at $16.11 which will draw the attention of traders. August started at $14.96 and July at $14.98 as June started at $13.77 – 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.