December 18, 2017 7:54am
Volatility and quadruple witching on Friday cleaned many clocks
Hopefully, we will be seeing a “Santa Clause” rally after a bad week. There are just too many “bottoms” to be tapped!
The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.64% in Monday’s pre-market
Pre-open indications: 6 Oversold and 2 Overbought
Higher open expected
Dow futures are UP +0.62% (+152 points) and NASDAQ futures are UP +0.55% (+36.25 points)
U.S. stock index futures are set for a strong positive open on Monday, on the back of optimism surrounding an overhaul of the U.S. tax system.
European stocks were higher, amid heightened expectations U.S. lawmakers could pass a long-awaited tax bill.
Asian indexes closed higher, given a boost by investor optimism that a plan to reduce corporate taxes would be passed stateside.
Issues that will affect the trading day: Expectations that the tax bill will be approved
Data docket: At 8:30 a.m. ET, the Business Leaders survey is due out, followed by the NAHB/Wells Fargo Housing Market Index, set to be published at 10 a.m. ET.
Issues on the political front: As investors gear up for the end-of-year Santa rally, political uncertainty lingers in the backdrop, threatening to dampen holiday spirit if politicians fail to reach a deal to avert a government shutdown.
Henry’omics:
From Friday night’s closing bell post, “…sector opened down, stayed depressed at the mid-day and closed neutral.”
As I had stated, “Cell, stem and gene therapy small-cap stocks didn’t fare well today or even this week. Much of the action surrounding quadruple witching days were about offsetting, closing or rolling out positions with the result elevating volume, particularly in the last hour of trading.”
Hopefully, we will be seeing a bounce in the sector after a bad week. There are just too many “bottoms” to be targeted!
- December has been among the best months for equities to outperform toward the end of the year.
Market sentiment will likely be buoyant following the release of the final version of a tax bill that is expected to be voted on next week.
The RegMed and cell therapy sector closed NEUTRAL on Friday, NEGATIVE on Thursday, POSITIVE on Wednesday, NEGATIVE on Tuesday and last Monday.
The cell therapy sector’s record over 5 sessions (of 40 covered companies):
· Friday closed NEUTRAL with 19 decliners, 19 advancers and 2 flats;
· 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;
· Last Monday closed NEGATIVE with 27 decliners, 12 advancers and 1 flat;
What are today’s indications - watch list:
- The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.64% in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.53% in Monday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is indicating a POSITIVE +0.35% in Monday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.96% in Monday’s pre-open
Companies in my headlights:
Oversold:
Applied Genetic Technologies (AGTC)
Athersys (ATHX)
Juno Therapeutics (JUNO)
Mesoblast (MESO)
uniQure (QURE)
Spark Therapeutics (ONCE)
Overbought:
Biostage (BSTG) – a Ponzi or Pyramid scheme … again?
Capricor (CAPR) on an upside based on one patent, they are so behind in therapy platform …
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.
