September 28, 2017 7:40am
In the ring of a momentum driven sector – fight or hit the canvas …
Sector companies need to “check hook” with aggressive outreach and “bolo punch” to distract the algorithms
Preview RMi's morning call. You’d be reading this if you were a SUBSCRIBER!
Pre-open indications: 2 BUYs and 1 SELL
If you had been right as many times as I have been in these many months of 2017 as a SUBSCRIBER you would know when to get in and out or get back in again!
It’s called premium content for a reason: I report the truth in “our” universe!
A critical pre-market indication ahead of “our” universe’s open!
Lower open expected
Dow futures are DOWN -0.08% (18 point) and NASDAQ futures are SOWN -0.11% (6.25 points)
U.S. stock index futures pointed to a marginally lower open on Thursday morning, after U.S. President Donald Trump unveiled a massive overhaul to the tax system.
European markets edged slightly higher after President Donald Trump unveiled much-awaited tax plans.
Asian indexes closed mixed, after U.S. equities advanced and the greenback rose following the unveiling of a long-awaited tax reform plan stateside.
Data docket: jobless claims out at 08:30 a.m. ET. There will also be revised GDP (gross domestic product) figures for the second quarter of the year and international trade in goods numbers, also at 08:30 a.m. ET.
Issues that affect the trading day: U.S. stocks may struggle for direction as investors await GDP, more Fed speakers
The cell therapy sector closed POSITIVE on Wednesday, NEGATIVE on Tuesday, Monday, Friday and lastThursday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Wednesday closed POSITIVE with 13 decliners, 30 advancers and 0 flats;
· Tuesday closed NEGATIVE with 23 decliners, 17 advancers and 3 flats;
· Monday closed NEGATIVE with 23 decliners, 16 advancers and 4 flats;
· Friday closed NEGATIVE with 20 decliners, 18 advancers and 5 flat;
· Last Thursday closed NEGATIVE with 21 decliners, 16 advancers and 6 flats;
Henry ’omics:
From Wednesday night’s closing bell post “…Yippee-Ki-Yay - an expression of joy as the sentiment tug of war for once helps the oversold … And as rotations are defined by algorithms and rebalancing.”
- Reiterating, “Another embarkation point … has been met and a potential worry, the Russell 2000 rallied again on Wednesday, hitting an intraday record in what was on track to be its biggest one-day percentage gain since June. The index of small companies (RUT) after Tuesday’s +1.68% gaining another +1.92% to 1,484.81 and was set for its fifth straight daily rise, as well as its best day since June 28.”
Will the sector bob and weave or will it “catch a cold” - The term used to describe a fighter knocked out early in the fight who was not mentally prepared or warmed up properly or feint, when a fighter acts like he’s going to punch but does not in order to get his opponent to react.
- Or as I say, “go to the body” - a strategy that centers on trying to deplete an algorithms resolution by repeatedly punching the outreach .
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 +0.57% on Wednesday and is indicating a POSITIVE +0.12% in Thursday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Wednesday up +1.48% and is NOT indicating in Thursday’s pre-market%;
- The Health Care Select Sector SPDR ETF (XLV) closed down -0.07% on Wednesday and NOT indicating in Thursday’s pre-open;
- The iShares Russell 2000 (IWM) closed up +1.96% on Wednesday and is indicating a POSITIVE +0.18% in Thursday’s pre-open
Companies in my headlights:
Adverum Biotechnologies (ADVM) closed up +$0.10 to $3.45. ADVM present updated pre-clinical data on ADVM-022 in non-human primate models of wet AMD (wAMD). Vascular endothelial growth factor (VEGF) overexpression plays a key role in the development and progression of wAMD as well as other retinal conditions. ADVM-022 utilizes a novel vector designed to allow for intravitreal delivery of gene sequences encoding an inhibitor of VEGF activity. Intravitreal delivery is the route of administration for current standard of care anti-VEGF therapies, and is preferred over invasive surgical subretinal delivery of gene sequences. The aftermarket indication is a positive +$0.35 or +10.14% - BUY;
MiMedx (MDXG) closed down -$0.40 to $11.92 with 3.254 M shares traded after Tuesday’s -$0.03 to $12.32 with 2.37 M shares traded <3 month average = 1.968 M shares> and Monday’s $12.35 with 2.2 M shares traded after last Friday’s $12.63 with 4 M shares traded ; up From the previous Thursday’s $12.27. Many of the legal challenges that have faced the company have seen significant wins. With $47.53 M in cash (6/30/17), $15 K in debt and $283.32 M in revenue and a profit margin of 7.48% - I’m voting for a good quarter - Maintaining BUY;
Vericel (VCEL) closed up +$0.60 to $5.50 with 1.77 M shares traded <3 month average = 523.1 K shares>. September started at $4.35 with a low of $4.30 having hit $4.85 and $4.95, three (3) times each while august started at $3.13 with a low of $3.00 and a high of $4.30. As Q2 ended, July started at $3.40 with a low of $3.10 and a high of $3.50. The upside was a little too swift and traders will take some profit. VCEL is going to NEED a financing ($14.04 M as of Q2’s end) especially with $10.16 M in debt on the books; while revenue has been strong – I wonder if Q3 will “show”? The aftermarket indication is -$0.10 or -1.82% - 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.
