January 18, 2018 7:26am

Few of the oversold will be yanked up by their heels and some will continue being dumped on their butts

 

The issues influencing downsizing some positions:  upcoming Q4 financial results of spending, cash positions and needed capital market access by some … along with low volume and questionable momentum

The short-term risk of sentiment is high …

 

Pre-open indications: 3 SELLs and 5 BUYs

Slightly higher open expected

Dow futures are UP +0.12% (+31 points) and NASDAQ futures are DOWN -0.04% (-3 points)

 

U.S. stock index futures pointed to a lackluster open on Thursday, following a strong performance seen on Wall Street during the previous session.

European markets were slightly higher, with investor sentiment boosted by another record close on Wall Street.

Asian markets closed mixed after the Nikkei 225 gave up early gains late in the session. Investors also digested a raft of China data released as mainland markets closed.

 

Issues that will affect the trading day: concerns over a potential government shutdown

Data docket: jobless claims, housing starts and building permits, and the Philadelphia Fed manufacturing business outlook survey all due out at 8:30 a.m. ET.

Issues on the political front: preventing a government shutdown while Democrats and Republicans remain at odds over an immigration bill that the Democratic Party wants to pass.

 

Henry’omics:

From Wednesday night’s closing bell post, “…selling the rips until the mid-day recognized the oversold and closed barely positive. Risk was reflected in the weak trading ranges yet the IBB (+0.73%), XBI (+1.36%), XLV (+0.96%), IWM (+0.96%) and NASDAQ (+1.03%) are up as CELG proposed to JUNO. Do investors really know what they own and want to invest in? There is no magic dust in this sector even with CELG’s interest in JUNO and its choosy sector effects.”

As I had stated, “Do investors really know what they own and want to invest in? The oversold status of the “usual suspects” will be a set-up for a milder rebound.”

I am sticking with my above words with …” A little insight or comparison; volume was low <most cases> in accord to the many up and down moves as BLCM was up (+$0.48 to close -$0.01) and crashed on 1.18 M shares traded <3 month average = 376.6 K shares>along with FCSC (-$0.0154) traded 1.45 M shares <3 month average = 531.1 K shares> while JUNO (+$23.65) traded 22.18 M shares <3 month average = 2.28 M shares>.”

Overbought and oversold conditions are measured by a Moving Average Convergence Divergence or MACD indicator — a trend-following momentum indicator that shows the relationship between two moving averages of prices.

The sector’s MACD indicator, which … sometimes … correctly signals indicates <to me> a short-term buy signals for some … a downside for the “overworked” … and scattered and small movements by most!

 

 

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

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

·         Wednesday closed POSITIVE with 18 decliners, 19 advancers and 3 flats;

·         Tuesday closed NEGATIVE with 31 decliners, 9 advancers and 0 flats;

·         Monday was a market holiday

·         Friday closed NEGATIVE with 21 decliners, 19 advancers and 0 flat;

·         Last Thursday closed POSITIVE with 15 decliners, 22 advancers and 3 flat;

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Thursday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Thursday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Thursday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.1% in Thursday’s pre-open

 

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed down -$0.05 to $3.95 with 65.7 K shares traded<3 month average = 105.2 K shares>, a low since 1/4/18 following 1/3/18’s $3.90 and 1/2/18’s $3.75. The aftermarket indication is a positive +$0.07 or +1.86%. Last Friday closed down -$0.10 to $4.20 41.3 K shares traded after last Thursday’s flat $4.30. A BUY on being fundamentally Oversold, AGTC has clinical trial timing issues and spending woes – BUY;

BioLife Solutions (BLFS) closed up +$0.03 to $5.63 with 26.1 k shares traded <3 month average =134.8 K shares>. BLFS always responds to news, the USPTO has issued a notice of allowance of a patent application titled "Biologic Stability, Delivery Logistics and Administration of Time and/or Temperature Sensitive Biologic Based Materials"- BUY;

bluebird bio (BLUE) closed up +$11.90 to $175.25 with 1.8 M shares traded <3 moth average = 894.8 K shares> after Tuesday’s -$7.35 to $163.35 and the aftermarket response is a positive +$11.65 or +7.13% after news of Celgene (CELG) potential to buy JUNO. BLUE is a collaborative partner of CELG and it is oversold in regard to its recent secondary offering at $185 by Goldman Sachs & Co. LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC and Cowen acted as joint book-running managers of the offering with the gross proceeds of the offering being approximately $651.3 million. The aftermarket indication is a positive +$0.65 or +0.37% – Maintaining BUY;

Fate Therapeutics (FATE) closed up +$0.41 to $6.96 with 415.7 K shares traded <3 month average = 449.4 K shares>. There’s an aftermarket indication of +$0.72 or +10.99% to $7.27, not sure where it came from but 1/12/18’s pricing was $7.01 - BUY;

Intrexon (XON) closed up +$0.48 to $14.25 with 4.259 M shares traded after Tuesday’s -$0.94 to $13.77 and was down in the aftermarket –0.87  or -6.32% after news of an offering Having started 2018 at $13.47, having seen a high of $14.71 and a low of $12.72. After an offering priced at $12.50, it could be an “Icarus” candidate – Maintaining SELL;

Juno Therapeutics (JUNO) closed up +$23.65 to $69.25 with 21.8 M shares traded <3 month average = 2.28 M shares> after Tuesday’s -$3.15 to $45.60 and was up +$22.40 or +49.12% on news and rumor of Celgene (CELG) making an acquisition move on its partner. The pre-market indication is a negative -$0.55 or -0.79%; after a new high, investors will be lightening the load after a huge upside – BUY to SELL;

Sangamo Therapeutics (SGMO) closed up +$0.20 to $17.50 with 1.38 M shares traded <3 month average = 1.428 M shares> after Tuesday’s -$1.00 to $17.30 with 2.27 M shares traded after Friday’s +$1.60 to $18.30 with 2.27 M shares traded. Last week saw $17.15 (Thursday), $17.40, $16.90 (Tuesday) and Monday’s $16.70 while the previous week traded in a range of $17.20 to $17.55. The aftermarket indication is a positive +$0.10 or +0.57% - Maintaining BUY;

Vericel (VCEL) closed up +$0.30 to $6.55 with 861.3 K shares traded <3 month average = K shares>. !/2/18’s pricing was $5.90, dropping 1/4/18 to $5.70 which was followed by eight (80 sessions of ups with a premium of $0.85 or +13% - take the profit – 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.