December 5, 2017 7:58am

Tuesday could have the potential to be a trader’s delight  

 

Been down so long (6 out of 9 sessions with a holiday), it’s time to re-shuffle the oversold deck ...

Lately with the advent of algorithms and ETF exposure, it seems the time horizon for pricing adjustment is three (3) to five (5) days

 

Pre-open indications:  short and non-sweet, 5 BUYs and 2 SELLs

 

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Mixed open expected

Dow futures are UP +0.25% (+61 points) and NASDAQ futures are DOWN -0.22% (-14points)

 

U.S. stock index futures pointed to a mixed open on Tuesday, as investors turned their attention to new data and earnings, while keeping an eye on key domestic news.

European markets were slightly lower, as investors digested the latest news surrounding Brexit talks and monitored fresh economic data.

Asia markets were mostly lower, as Australia's central bank met expectations by keeping its cash rate unchanged.

 

Issues that will affect the trading day: Sentiment

Data docket: international trade figures will come out at 8:30 a.m. ET, followed by services PMI (purchasing managers' index) data at 9:45 a.m. ET, and then the non-manufacturing ISM report on business and the Quarterly Financial Report (QFR) at 10 a.m. ET.

Issues on the political front: Aside from tax reform and ongoing rumblings surrounding the current U.S. administration's relationship to Russia, other news set to shake up sentiment Tuesday concerns news made by the Supreme Court.

 

Henry’omics:

From Monday night’s closing bell post, “Just another Monday or was it? As the sector’s upside grinds down at the 10:30 a.m. mark while the market soars and the NASDAQ lags. Once again, I say, “risk is lately a four letter expletive; investors need to understand the risk/reward ratio and more to their exposure.  Net-net, this could be about a bad taste of share pricing volatility and maybe more about end of year selling.”

As I stated and read in Investor’s Business Daily, “… it’s a delicate dance with Wall Street and regulators – balancing public health issues with the demands of shareholders. Investors will find it tricky to navigate the sector, as companies can rise and fall at the drop of a hat.”

Also, as I had stated, “We've kind of gotten use to the drama in the sector but, what will cure the “believability” infection that is spreading through the retail and individual investor base!”

.

 

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

The cell therapy sector’s record over 1 session (of 40 covered companies):

·         Monday closed NEGATIVE with 32 decliners, 7 advancers and 1 flat;

The cell therapy sector’s record over the last 4 sessions (of 43 covered companies):

·         Friday closed NEGATIVE with 23 decliners, 16 advancers and 4 flat

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

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

·         Last Tuesday closed NEGATIVE with 23 decliners, 15 advancers and 5 flats;

 

In the last ten (10) sessions, there has been six (6) negative sessions, 3 positive and a holiday – time for some upside, it’s a drink that won’t kill you but, might make you – a buck ($)!

From the title, Ponzi is a form of fraud in which belief in the success of a existent enterprise is fostered by the investment of yet another financing without any return to investors from money invested by original stakeholders and later by many times bottom-fishing investors.

  • How it works in the present day: spin-out a unit of a public company, execute a number of financings, never recognize or communicate any regulatory findings or compassionate use results, fire those who question the veracity of the egocentric officer who were supported by the weak in the management with a board of directors (BOD) who were deaf and blind who billed and collected over-sized fees!

All the while push-out the payables to mask the true status of the cash position and disguise the regulatory status by sticking to a script that changes by the month which went undiscovered by investors as the air was thick with incomplete truths … to maintain salaries and benefits to the few.

  • Throw in some female harassment issues, some undermining of the management team by one of its members causing a broken financing  and the missteps continued to repeat over and over as shareholders were kept in the dark as they are to this date!!

There are different iterations of these scenarios that are taking place in a number of companies …

  • For some companies the truth is an inconvenient consequent!

Where is the SEC?

 

 

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 Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.22% in Tuesday’s pre-open

 

Companies in my headlights:

Applied Genetic technologies (AGTC) closed down -$0.05 to $3.75 with 48.7 K shares traded <3 month average = 156.8 K shares> and an aftermarket indication is a POSITIVE +$0.10 or +2.53%. Oversold - BUY;

bluebird bio (BLUE) closed down -$8.80 to $162.30 with 722.8 K shares traded <3 month average = 805.3 K shares>   The aftermarket indication is a POSITIVE +$1.55 or +0.96%. Oversold – BUY;

Juno Therapeutics (JUNO) closed down -$1.44 to $68.64 with 417.8 K shares traded <3 month average = 465.7 K. November started at $78.56 had a high of $82.06 and a low of $68.25 on 11/14 while October ended at $80.90 having started at $89.37 – BUY;

Neuralstem (CUR) closed down -$0.05 to $1.12 with a pre-market indication of +$0.24 or +22.32% to $1.36 on NEWS that additional safety, efficacy and tolerability data from its exploratory P2 clinical trial examining the efficacy of NSI-189 at 40 mg once daily (QD) and 40 mg twice daily (BID) compared to placebo for the treatment of major depressive disorder (MDD) were presented at the 56th American College of Neuropsychopharmacology (ACNP) Annual Meeting in a poster entitled, “A Phase 2, Double-Blind, Placebo-Controlled Study of NSI-189 Phosphate, a Neurogenic Compound, Among Out-Patients with Major Depressive Disorder.”  These additional results suggest that NSI-189 has antidepressant effects with cognitive benefits shown on both objective and subjective measures – BUY’

Osiris (OSIR) closed up +$0.34 to $6.85 with 9.3 K shares traded <3 month average = 24 K shares>. Still in my eyes, a criminal organization – SELL;

Spark Therapeutics (ONCE) closed down -$1.44 to $68.64 with 417.8 k shares traded <3 month average = 465.7 K shares>. November started at $80.08, saw a high of $82.06 and a low of $68.25 – Oversold – BUY;

Vericel (VCEL) closed up +$0.35 to $4.85 with 789.9 K shares traded <3 month average = 709.5 K shares>. VCEL seems always to maintain an Icarus label; it flies high to drown at low tide. December started at $4.50 while November started at $4.40, saw a high of $4.50 and a low of $3.65. I still believe that VCEL will be looking to execute an offering since cash is low at $15.47 M – 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.