October 11, 2017 7:43am

As investors continue swinging  from and to some newer highs, they also know that any dramatic upside can have a negative portfolio impact

 

What’s the gauge of pricing expectation – monetization of information!

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Pre-open indications: 1 SELL and 3 BUYs


 

Trades in sector equities are precursors of news, not the other way around!

 

 

Lower open expected

Dow futures are DOWN -0.05% (11 points) and NASDAQ futures are DOWN -0.08% (5 point)

 

U.S. stock index futures pointed to a slightly weaker open Wednesday, as investors await the minutes from the latest Federal Open Market Committee (FOMC) meeting.

European stocks were mixed, as investors continued to monitor ongoing political uncertainty.

Asian shares touched a decade-high, taking cues from signs of confidence in the U.S. Meanwhile, the euro held onto overnight gains after Catalonia held back on an outright declaration of independence.

  • The positive mood also extended to greater China, which notched moderate gains. Hong Kong's Hang Seng Index closed down 0.36 percent, or 101.26 points, at 28,389.57. On the mainland, the Shanghai Composite edged up 0.18 percent to finish the session at 3,389.0492 and the Shenzhen Composite reversed early gains to closed down 0.183 percent at 2,026.4692.

 

Issues that will affect the trading day: Investors will probably pore over the minutes Wednesday for any signs as to what the Federal Reserve may do in the coming months, and what it currently thinks of the U.S. economy.

  • At 2:00 p.m. ET on Wednesday, the latest minutes from last month's FOMC meeting will be published. While the U.S. central bank left its benchmark interest rate unchanged in September, the Fed did take its first steps towards unwinding its economic stimulus.

Data docket: the release of the latest publication of Job Openings and Labor Turnover Survey (JOLTS), which is set to come out at 10:00 a.m. ET, while mortgage applications will be released at 7:00 a.m. ET.

 

 

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

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

·         Tuesday closed POSITIVE with 19 decliners, 23 advancers and 1 flat;

·         Monday closed NEGATIVE with 26 decliners, 13 advancers and 4 flats;

·         Friday closed NEGATIVE with 28 decliners, 12 advancers and 3 flats’

·         Thursday closed NEGATIVE with 21 decliners, 20 advancers and 2 flats;

·         Last Wednesday closed POSITIVE with 18 decliners, 19 advancers and 6 flats;

 

 

Henry ’omics:

From Tuesday night’s closing bell post, “after anticipating an upside and the mid-day slipping … The sector closed positive.  As I had stated, “Traders were back at their desks and looking at the overbought while eyeing the oversold during a thinly traded session!”

Reiterating, “The way forward cannot be found in the practices and spending of the past as the sector is operating and defined by its own contradictions. Each of the contradictions can be traced to its dependency on capital market access!”

 

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) is NOT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.02 in the aftermarket but was NOT indicating in Wednesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Wednesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.03% in Wednesday’s pre-open

 

 

Companies in my headlights:

Athersys (ATHX) closed down -$0.19 or -7.85% to $2.23 with 2.59 M shares traded. ATHX closed Monday flat at $2.42 after Friday’s -$0.03 to $2.42 with 923.6 K shares traded after Thursday’s +$0.31 or +14.49% to $2.45 with 2.4 M shares traded <3 month average = 1 M shares>. ATHX saw $2.45 on 9/26 and a September high of $2.55 and a low of $1.75 while October began at $2.19. There is a positive aftermarket indication of +$0.08 or 3.74%. I still believe ATHX has a cash problem re spending and NEEDS a financing. ATHX has entered into a manufacturing services agreement with Nikon CeLL innovation Co., Ltd. (NCLi) for commercial production of its stem cell therapy, MultiStem®, in Japan for ischemic stroke.  NCLi is a wholly-owned subsidiary of Nikon Corporation and provides a wide range of process development and manufacturing services, from pre-clinical to commercial manufacturing of cell and gene therapies. The pre-market indication is a positive +$1.022 or +45.74% - BUY;

Biostage (BSTG) closed up +$0.005 to a wholesome $0.12 (sarcasm). Why is it even up, after all the issues of blowing through $30 M in three (3) years, a failed platform and now an investor who walked away as its CMO and president resigned effective immediately – always a BAD indicator. The question I have is how many lawyers does it take to keep their doors open?  Bad decisions and poor management are catching up to them as their CMO and president was promoted after undermining its CEO last year and then resigned after “machinating” with the investor (who walked) to be a co-CEO. The money “well” is about to run dry if it isn’t already. Shouldn’t the SEC become involved?  Where is the BOD that promoted the resigned executive and approved all these issues or lack thereof – complicity? NEVER forget the terminal death legal suit is still a “Sword of Damocles” hanging over the company. The ultimata battle perceptio versus real-time opinion – Maintaining SELL;

MiMedx (MDXG) closed up +$0.63 or +5.38% to $12.35 with 4.85 M shares traded after Monday’s -$0.41 or -3.38% to $11.72 with 1.7 M shares traded <3 month average = 2.26 M shares>. October started with a high of $12.79, September started at $16.53 with a high of $16.73 and a low of $11.82. MiMedx announce Q3 revenues of $84.6 M which exceeds guidance by more than 5%.  Oversold and the pre-market indication is a positive +0.57 or +4.86% - Maintaining BUY

Spark Therapeutics (ONCE) closed up +$1.07 or +1.25% to $86.74 with 553.9 K shares traded after being down on Monday -$1.77 or –2.02% to $85.67 with 703.9 K shares traded <3 month average = 510.5 K shares>. Oversold and the pre-market indication is a positive +$1.00 or +1.15% - Maintaining BUY

 

 

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.