Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) pre-open indication: stock indexes leave investors juggling scattered factors

December 8, 2017 8:16am

Numbers and graphs are only a form of shorthand but, do they see the sector behind the numbers?

Investors need to understand the potential of anticipation and the distinction of pricing

Fingerprint free algorithms omit any mention of the reasoning behind their selection

As I had stated, “Don’t get too comfortable with a number of those equities with an upside. Pessimism is a protective and profitable shroud!”

Pre-open indications: short and non-sweet, 3 BUYs and 2 SELLs

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Higher open expected

Dow futures are UP +0.09% (+23 points) and NASDAQ futures are UP +0.50% (+32 points)

U.S. stock index futures pointed to a slightly higher open on Friday, as the all-important U.S. jobs data takes center stage.

European markets were higher, as investors reacted to progress in Brexit negotiations and a long-sought deal regarding global banking regulations.

Asian markets closed higher as markets digested better-than-expected China trade data and tracked the move higher in the dollar

Issues that will affect the trading day: It’s Friday, will traders stay long over the weekend …

Data docket: the non-farm payrolls data due out before the opening bell. Investors will be turning their attention to non-farms, unemployment rate figures and average hourly wages data — all of which will be published at 8:30 a.m. ET — to try and get a sense of how the U.S. economy and the labor market are performing. In addition, consumer sentiment and wholesale trade figures are due out at 10 a.m. ET.

Issues on the political front: The overhaul in the U.S. tax system continues to linger at the back of investors' minds,

Henry’omics:

From Thursday night’s closing bell post, “…finally an upside at the 10:00 a.m. mark, the sector regained lost ground after taking a pounding and stayed up through the mid-day to close positive. It’s about right-sizing the oversold’s value but, don’t get too comfortable with a number of those with upsides.”

As I had stated, “Don’t get too comfortable with a number of those with upsides. Remember the fable of Icarus … those who fly too high will get melted by traders. The question is what is sustainable in this volatile world and market.”

The is just TOO MUCH short-term thinking and pricing in these last weeks!

What will or which upside will stick?

Sustainability has be more than a session ,,, this will be the key to the sector!

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

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

· Thursday closed POSITIVE with 11 decliners, 24 advancers and 5 flats;

· Wednesday closed NEGATIVE with 29 decliners, 7 advancers and 4 flats

· 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):

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

You’ve made it to the office, turned on the monitor, having just gotten your coffee and it hits you - what are today’s indications?

Watch list:

The iShares Nasdaq Biotechnology (IBB) is indicating a NEGATIVE -0.05% in Friday’s pre-market;
The SPDR S&P Biotech ETF (XBI) is NOT indicating 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 +0.36% in Friday’s pre-open

Companies in my headlights:

bluebird bio (BLUE) closed up +$8.50 to $167.90 with 706.2 K shares traded after Wednesday’s -$3.25 to $159.40 with 904.3 K shares traded after Tuesday’s +$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 = 778 K shares> – Maintaining BUY;

Biostage (BSTG) closed flat at $0.06 with 377.2 K shares traded <3 month average = 755.4 K shares>. Kiss you share price and ownership – GOOD BYE” as BSTG will be delisted on 12/18 – Maintaining SELL;

Juno Therapeutics (JUNO) closed up +$2.17 to $56.73 with 1.18 M shares traded after Wednesday’s +$1.36 to $54.56 after Tuesday’s -$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 = 2.245 M. 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. The aftermarket indication is a POSITIVE +$0.27 or +0.48% – Maintaining BUY;

Regenxbio (RGNX) closed up +$0.85 to $30.30 with 391.8 K shares traded after Wednesday’s +$1.25 to $29.45 with 198.9 k shares traded <3 month average = 362.9 K shares>. December started out at $28.90 following Novembers end at $28.10 and start at $28.00 with a low of $26.00 and a high of $29.70. On Thursday, Regenxbio (RGNX) reached a key performance benchmark, with its Relative Strength (RS) Rating jumping into the 90-plus percentile with an improvement to 92, up from 89 the day before. IBD's unique RS Rating measures technical performance by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database. Decades of market research reveals that the best stocks typically have an RS Rating of over 80 in the early stages of their moves - Maintaining BUY;

VistaGen (VTGN) closed up +$0.23 to $2.03 with 16.2 M shares traded after Wednesday’s +$0.87 to $1.80 with 40.68 M shares traded <3 month average = 829.1 K shares>. A process patent set off the surge, VTGN has enough problems in the development program; an Icarus candidate – 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.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.