December 15, 2017 8:01am

Investors need to study the news; rather than “follow “it”, that explains why they fail to learn from the exposure

 

Posts should not be forgotten going forward, they also tell a story of future behaviors

When exposed, corporate failings are a symptom of cause and consequence

 

While pricing arbitrage is an issue of the day

 

Financing: Biostage (BSTG) raised $4 M with sale of 60 M shares with 100% warrant coverage … https://www.regmedinvestors.com/articles/10050

Can’t read because of no subscription rights - you’re missing situational awareness and the most trustworthy source of independent insight!

 

Higher open expected

Dow futures are UP +0.31% (+75 points) and NASDAQ futures are UP +0.24% (+16 points)

 

U.S. stock index futures are set for a positive open Friday, as investors shake off concerns surrounding overhauling the tax system and turn their attention to upcoming data.

European stocks moved lower, with sentiment curbed by concerns over plans to overhaul the tax system in the U.S

Asian markets closed mostly lower U.S. markets finished in the red on concerns about the future of tax reform stateside.

 

Issues that will affect the trading day: Volatility

Data docket: At 8:30 a.m. ET, the Empire State Manufacturing survey is expected to come out followed by industrial production data, due out at 9:15 a.m. ET. Treasury International Capital (TIC) data will be released in the afternoon, at 4 p.m. ET.

Issues on the political front: The GOP is expected to unveil their tax plan

 

 

Henry’omics:

From Thursday night’s closing bell post, “…sector drifts downward on low volume. Headwinds evaporated any forward motion as the NASDAQ dives. Speculation has no conviction while sentiment is like oil on water after a slightly positive open, the mid-day slipped with the advance/decline line sliding to the downside as the sector closed further down on weakness.”

Friday also marks Quadruple Witching Day, where volatility is likely as stock index futures, stock index options, stock options, and single-stock futures expire.

Quadruple witching refers to an expiration date that includes stock index futures, stock index options, stock options and single stock futures. While stock options contracts and index options expire on the third Friday of every month, all four asset classes expire simultaneously on the third Friday of March, June, September and December.

Much of the action surrounding futures and options on quadruple witching days are focused on offsetting, closing or rolling out positions, as well as arbitrage trades, with the result being elevated volume, particularly in the last hour of trading.

 

 

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

The cell therapy sector’s record over 5 sessions (of 40 covered companies):

·         Thursday closed NEGATIVE with 24 decliners, 13 advancers and 3 flats;

·         Wednesday closed POSITIVE with 8 decliners. 30 advancers and 2 flats;

·         Tuesday closed NEGATIVE with 27 decliners, 11 advancers and 2 flats;

·         Monday closed NEGATIVE with 27 decliners, 12 advancers and 1 flat;

·         Last Friday closed NEUTRAL with 19 decliners, 19 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 are today’s indications?

Watch list:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating 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 -0.41% in Friday’s pre-open

 

Companies in my headlights:

 

I’m stepping out of the ring … Today!

Over the course of a quadruple witching day, transactions involving large blocks of contracts can create price movements that may provide trading arbitrage - the opportunity to profit on temporary price distortions.

Trading arbitrage can rapidly escalate volume, particularly when high volume round trips are repeated multiple times over the course of trading on quadruple witching days.

 

 

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.