December 29, 2017 7:52am

The RSI (relative strength index) has been falling, but there is more room to fall

 

January will define the “BUY” zone – so wait and define your risk tolerance and any target’s cash positions

 

Get ready to have a happy … posrtfolio

Higher open expected

Dow futures are UP +0.35% (+87 points) and NASDAQ futures are UP +0.33% (+22 points)

 

U.S. stock index futures were mixed to higher ahead, as investors get ready for the start of a new trading year.

European shares were under slight pressure as investors waved goodbye to 2017 and look ahead to what the New Year will bring for markets.

Major markets in Asia closed narrowly mixed on the last trading day of the year following the moderately higher close seen stateside. On the whole, however, most regional markets have recorded strong gains year-to-date.

 

Issues that will affect the trading day: trends and potential market-moving events will be of key importance to market-watchers

Data docket: None

Issues on the political front: President Donald Trump tweeted on Thursday that he was "very disappointed"; after a report indicated that China could have run afoul of international sanctions, by providing oil to North Korea.

 

Henry’omics:

From Thursday night’s closing bell post, “I couldn’t have said it better … In the pre-open, “Step back and watch the trading “flow” to the mid-day, wait for signs of momentum and then be a follower as the sector dived precipitately after opening up to close down.”

Trading has been lighter than usual this week as investors get ready for the New Year.

  • The expectation is that volatility will pick up going forward and there will be down spikes bigger than what investors expect

Don’t define your portfolio “interests” to buy equities that were artificially depressed because of 2016’s tax-loss selling.

 

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

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

·         Thursday closed NEGATIVE with 20 decliners, 15 advancers and 5 flats;

·         Wednesday closed POSITIVE with 17 decliners, 20 advancers and 3 flats;

·         Tuesday closed POSITIVE with 16 decliners, 22 advancers and 2 flats

·         Monday was Christmas Day;

·         Last Friday closed NEGATIVE with 19 decliners, 18 advancers and 3 flats

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Friday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.87% 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 +0.52% in Friday’s pre-open

 

 

Companies in my headlights:

 

I say sit it out for the session, WHAT is there to be gained as the New Year begins on Tuesday and the news at JP Morgan MIGHT re-invigorate the sector but, I am NOT expecting much!

Heed the warnings of the past month … how confident are we of the sector’s prospects!

Don’t be the investor who regrets not taking profits while “our” universe’s stocks pulled back. Rebalance your portfolio while you still have time!

 

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.