December 6, 2017 8:20am
… But not all sector management teams are of the same mind especially when they grumble about coverage but, don’t do much to enhance it in relation to a social media response
They need to know that the current sector and market conflict is not just an aspect of news and its reliability is currently dependent upon attention on short-term pricing
That’s where I and we come in …!
Also, the iShares NASDAQ Biotechnology ETF (IBB) is UP indicating a POSITIVE +0.65%
Pre-open indications: short and non-sweet, 4 BUYs and 2 SELLs
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Lower open expected
Dow futures are DOWN -0.13% (-32 points) and NASDAQ futures are DOWN -0.29% (-18.5 points)
U.S. stock index futures pointed to a negative open on Wednesday, as investor’s awaited fresh data while taking note of the declines seen in markets overseas.
European markets were lower, as investors reacted to a slump in global technology stocks.
Asia markets fell sharply almost across the board as the main index in Japan lost nearly 2%.
Issues that will affect the trading day: Stocks sold off again midday Tuesday for the second day in a row; are we ready for a third or will we see some upside from the oversold?
Data docket: mortgage applications are due out at 7 a.m. ET, followed by ADP National Employment report at 8:15 a.m. ET, and productivity and costs data at 8:30 a.m. ET. The figures come two days before the U.S. nonfarm payrolls data for November, due out on Friday.
Issues on the political front: Aside from tax reform and ongoing rumblings surrounding the current U.S. administration's relationship with Russia, other news set to shake up sentiment Wednesday concerns Jerusalem.
From Tuesday night’s closing bell post, “…a tug of war of pricing and value. The sector opens positive, slips negative in first hour, flips positive in second, with the mid-day barely positive to close with a negative advance/decline lie (A/DL). It’s a test of relative strength of the price trends with algorithms and ETFs pulling on opposite ends of a rope against investors while low volume is still a major factor as sector breadth got slapped.”
Reiterating, “As the year ends many are saying, reduce cash and get into equities – I say SELL and raise cash au contraire to the thoughts of a Santa Clause rally and the past “thoughts” of BUY pre the JP Morgan conference to SELL and BUY after the hallucinogenic trip through the St. Francis Hotel hallways in January (8th to the 11th).”
As to the title, pricing stems in part to the simple fact that investors and traders have a different view of news as to their preference.
Their contradictions exaggerate how pricing is related to sector and market behavior – NOT fully understood by many CEOs as to the exaggeration of how I-Bank and INDEPENDENT research contributes to short, near and long-term pricing and its sustainability.
The real issues comes down to eyeballs and consumption of which reader group is buying and selling these days – as momentum is the driver and news and social media are the drivers!
Do I see some blue sky through this past day's troll through the downside forest ...!!
The RegMed and cell therapy sector closed NEGATIVE on Tuesday, Monday and Friday, POSITIVE on Thursday and last Wednesday.
The cell therapy sector’s record over 1 session (of 40 covered companies):
· Tuesday closed NEGATIVE with 21 decliners 18 advancers and 1 flat;
· 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;
· Last Wednesday closed NEGATIVE with 22 decliners, 18 advancers and 3 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?
- The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.65% in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is 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 -0.05% in Wednesday’s pre-open
Companies in my headlights:
bluebird bio (BLUE) closed up +$0.35 to $162.65 with 563.6 K shares traded after Monday’s -$8.80 to $162.30 with 722.8 K shares traded <3 month average = 780.7 K shares> The pre-market indication is a POSITIVE +$2.35 or +1.44%. Oversold – Maintaining BUY;
Fate Therapeutics (FATE) closed down -$0.13 to $4.04 with 165.2 K shares traded after Monday’s $4.17 (-$0.22). FATE partnered with the University of California San Diego to develop off-the-shelf, chimeric antigen receptor (CAR)-targeted natural killer (NK) cell cancer immunotherapies. The two-year collaboration is being led by Dan S. Kaufman, M.D., Ph.D., Professor of Medicine in the Division of Regenerative Medicine and Director of Cell Therapy at UC San Diego School of Medicine. At the 59th American Society of Hematology (ASH) Annual Meeting and Exposition, Dr. Kaufman and Fate Therapeutics will present preclinical data on Saturday, December 9, 2017 highlighting CAR-targeted NK cells derived from an induced pluripotent stem cell (iPSC) engineered with a specific CAR construct containing a NKG2D transmembrane domain, a 2B4 co-stimulatory domain and a CD3ζ signaling domain. In preclinical studies using an ovarian cancer xenograft model, the collaborators have shown that a single dose of CAR-targeted NK cells derived from iPSCs engineered with this specific CAR construct markedly inhibited tumor growth and significantly enhanced survival as compared to NK cells containing a CAR construct commonly used for T-cell immunotherapy. Dr. Kaufman was recently awarded $5.15 million by the California Institute for Regenerative Medicine (CIRM) to advance clinical translation of NK cells derived from pluripotent stem cells into a standardized treatment for treating hematologic malignancies. One word, News – BUY;
Juno Therapeutics (JUNO) closed down -$1.46 to $53.20 with 1.45 M shares trading after Monday’s -$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 – Maintaining BUY;
Neuralstem (CUR) closed up +$1.97 to $3.09 with 55.63 M shares traded <3 month average = 488.7 K shares> after Monday’s -$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 for the treatment of major depressive disorder (MDD). One word analogy – “Icarus”. The aftermarket indication is a NEGATIVE -$0.23 or -7.44% – BUY to SELL;
Spark Therapeutics (ONCE) closed up +$2.33 to $70.97 with 658 K shares traded after Monday’s -$1.44 to $68.64 with 417.8 k shares traded <3 month average = 470.8 K shares>. November started at $80.08, saw a high of $82.06 and a low of $68.25 – Oversold – Maintaining BUY;
Vericel (VCEL) closed up +$0.25 to $5.05 with 630.6 K shares traded after Monday’s +$0.35 to $4.85 with 789.9 K shares traded <3 month average = 712.4 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 – Maintaining 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.