November 17, 2017 7:25am

It’s either overbought or oversold

 

Pure and simple …

After many big upsides, what’s going to keep them up?

 

Somedays it’s lucky to close flat!

 

Pre-open trading indications: 2 SELLs and 3 BUYs

 

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Lower open expected

Dow futures are DOWN -0.06% (-14 points) and NASDAQ futures are UP +0.11% (+7.25 points)

 

U.S. stock index futures pointed to a weaker open Friday, as investors geared up for the final cluster of economic data and corporate earnings for the week

European markets turned lower as investors digested new trading updates and remarks by ECB President Mario Draghi.

Asian shares closed mixed as Japanese and Hong Kong markets ended the session with gains, but were off their session highs.

 

Issues that will affect the trading day: market action on Friday seems to have pulled back a bit, with European stocks under slight pressure while markets in Asia finished the last day of the week on a relatively mixed to higher note.

Data docket: housing starts and building permits are due out at 8:30 a.m. ET, and then the Kansas City Fed manufacturing survey is set to be published at 11 a.m. ET.

On the political front: The focus is now on the Senate after the House of Representatives passed a sweeping bill to overhaul the tax code on Thursday. But the Republicans’ proposed legislation has several steps to go, with immediate hurdles ahead.

 

 

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

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

·         Thursday closed POSITIVE with 13 decliners, 28 advancers and 2 flats;

·         Wednesday closed NEGATIVE with 22 decliners, 18 advancers and 3 flats;

·         Tuesday closed NEGATIVE with 30 decliners, 11 advancers and 2 flats;

·         Monday closed NEGATIVE with 25 decliners, 17 advancers and 1 flat;

·         Last Friday closed POSITIVE with 18 decliners, 24 advancers and 1 flat;

 

 

Henry’omics:

From Thursday night’s closing bell post, “rebound, the sector was bouncing.”

As I stated yesterday before the market opened, “Give a one, a two and a maybe three cheers for an UP session on Thursday!”

Is the sector’s future is like the past – you betcha!

Recent sector behavior has reflected the lack of belief in what many investors think of “some’ managements, their operating practices i.e. spending as well as their outsized pay and bennies!

Today’s high mark a relief from many lows and marks at least my contrarian and targeted perspective … consequently, I am of the opinion that … we are back to the battle of the overbought becoming the oversold and the short-term future of devaluing today’s upside.

Watch and keep your eyes upon weakness – news and volume versus relative strength to define pricing movement!

After many big upsides, what’s going to keep them up?

 

 

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 Friday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.09% in Friday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Friday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.13% in Friday’s pre-open

 

 

Companies in my headlights:

AxoGen (AXGN) closed down -$2.30 to $22.60 after Wednesday’s +$0.10 to $24.90 with 194.5 K shares traded after Tuesday’s flat at $24.80 with 148.9 shares traded after Monday’s -$0.25 to $24.80 with 106.8 K shares traded after last Friday’s +$0.15 to $25.05 with 192 K shares traded. My issue is the cash position ($22 M) and bank debt positions ($25 M). As an offering has been proposed priced at $21.00 I the aftermarket indication is a NEGATIVE -$2.65 or -10.64% - Maintaining SELL;

Intrexon (XON) closed up +$0.97 to $13.62 with 2.9 M shares traded. November has seen a high of $16.43 and a low of $11.81 having started the month at $15.89.   XON is a little too weekly and monthly cyclical.  The aftermarket indication is a NEGATIVE -$0.15 or -1.07% - SELL

Juno Therapeutics (JUNO) closed up  +$1.34 to $57.74 with 1,8 M shares traded after Wednesday’s +$2.54 to $56.40 after Tuesday’s -$2.19 to $53.86 with 2 M shares traded after Monday’s -$1.54 to $56.05 with 1.39 M shares traded <3 month average = 3 M shares>. JUNO always seems to retrace their declines – Maintaining BUY;

MiMedx (MDXG) closed down -$0.58 to $11.36 with 3.18 M shares traded. 11/9, the share price as $12.70, 10/9 was $11.72 and 9/8’s $14.24. The aftermarket indication is a negative -$0.26 or -2.29% yet as a true contrarian; I believe that MDXG is oversold, with a positive pre-market indication +$0.04 or +0.35% - Maintaining BUY;

Sangamo Therapeutics (SGMO) closed down -$0.05 to $14.60 with 1.29 M shares traded after Wednesday’s +$1.75 to $14.65 after Tuesday’s flat at $12.90 with 1 M shares traded <3 month average = 1.69 M shares>. Oversold, the pre-market indication is a POSITIVE +$0.15 or +1.02% - 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.