November 24, 2017 8:11am

Is there a “Black Friday” for sector equities?

 

It isn’t about discounts to some “cheap” pricing; skip Wednesday’s “trading toys” in the sector sandbox

 

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Higher open expected

Dow futures are UP +0.39% (+71 points) and NASDAQ futures are UP +0.14% (+9.25 points)

 

U.S. stock index futures pointed to a higher open Friday, as investors gear up for more data during a shortened trading day.

European equities hovered around the flat line amid lower liquidity levels due to the Thanksgiving holiday.

Asian markets closed mixed, following a quiet overnight trading session with U.S. markets closed for the Thanksgiving holiday. Chinese stocks ended the week more than 1 percent lower after a heavy sell-off in the previous session.

 

Issues that will affect the trading day: Trade in the U.S., however, will be shortened, with markets such as the New York Stock Exchange (NYSE) finishing trade earlier. Markets in Europe and Asia are trading as usual.

Data docket: Flash US composite purchasing managers index (PMI) data is set to be released at 9:45 a.m. ET.

On the political front: tax reform will remain at the back of investors’ minds. Earlier this week, U.S. President Donald Trump stated that the administration was going to "give the American people a huge tax cut for Christmas," according to the Associated Press. Concerns still linger on Wall Street, however, as to whether a deal will come about by the end of the year.

 

 

Henry’omics:

From Wednesday night’s closing bell post, “the sector bubbles with a little fizz; another I told you so but, it is still time to take care/ The appetite for the oversold drove up pricing and many are taking a few more risks which may not be fully understood,”

As I stated, “I feel a responsibility to put everything out there about the sector! There is always a disproportionate risk to the downside. My objective is to achieve balance in dispersing intelligence that is factual to dissolve the hype of many of the sector’s ‘usual suspects’”.

 

 

Some of MY working trend lines or indications from Wednesday:

… The greatest volume to the downside:  SGMO, MDXG, KOOL, IMUC and FCSC

… Upside volume was weighted to:  XON, VSTM, VCEL, STML and RGNX

… Biggest $ downside: AXGN (-$0.45), BLFS (-$0.43), KOOL (-$0.25), FATE (-$0.12) and SGMO (-$0.10)

… Largest $ upside:  JUNO (+$1.56), ONCE (+$1.27), XON (+$0.97), RGNX (+$0.60) and BLCM (+$0.37)

… Flat:  BSTG

 

 

The cell therapy sector, Thursday was a holiday, Wednesday closed POSITIVE, Tuesday and Monday were NEGATIVE and POSITIVE last Friday. The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):

·         Thursday was Thanksgiving, markets in U.S. were closed;;

·         Wednesday closed POSITIVE with 16 decliners, 26 advancers and 1 flat;

·         Tuesday closed NEGATIVE with 22 decliners, 19 advancers and 2 flats;

·         Monday closed NEGATIVE with 24 decliners, 19 advancers and 0 flats

·         Last Friday closed POSITIVE with 15 decliners, 26 advancers and 2 flats;

 

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 +0.11% 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 POSITIVE +0.3% in Friday’s pre-open

 

 

Companies in my headlights:

Luck of the draw … of short straws as the algorithms will rule the day!

Although I’d be open to some “stealth” buying of a few oversold and some selling of a couple of overbought!

I’d be careful of any big trading bets although ATHX, CYTX, CAPR and VCEL could be proposing/enacting financings

 

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.