March 19, 2018 7:59am

Always in a wait and see mode …

Which is focused on uncertainty which points to more risk?

 

Q4 and FY 17 financial results: Fibrocell (FCSC)

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Lower open expected

 

Dow futures are DOWN -0.56% (-140 points) and NASDAQ futures are DOWN -1.42% (-100 points)

 

In the week ahead, the standout event will be the Federal Reserve's interest rate decision on Wednesday afternoon. While the Fed is expected to raise short-term interest rates, investors will focus on the accompanying press release, which may give additional information regarding the number of rate hikes it expects for the remainder of the year. <EdwardJones>

 

US stocks set for a negative open as trade tensions resurface

European markets were lower on Monday morning, as investors looked ahead to a trading week in which the Federal Reserve is likely to hike interest rates.

Asian markets closed mixed

 

Henry’omics:

Last week’s results have implications to Monday’s activity as the end-of-week review showed a negative start (last Monday) and a positive finish (Friday) after a quadruple witching session as many covered, re-established new or recalibrated or exited positions.

RegMed, stem, gene and cell therapy sector’s record over 5 sessions (of 40 covered companies) :

  • Friday closed POSITIVE with 17 decliners, 23 advancers and 0 flats;
  • Thursday closed NEGATIVE with 27 decliners, 11 advancers and 2 flats;
  • Wednesday closed NEGATIVE with 21 decliners, 18 advancers and 1 flat;
  • Tuesday closed POSITIVE with 16 decliners, 19 advancers and 5 flats;
  • Last Monday closed NEGATIVE with 22 decliners, 16 advancers and 2 flat;

Volatility remained elevated as volume continued low yet slightly up. Review the alternation of the closes … does it speak to the coming week?

From Friday’s night’s newsletter, “… so much for quadruple witching mania and the broomstick ride to unwind contracts; “Double, double toil and trouble, fire burn and cauldron bubble" – Macbeth.  The sector opened down, jumped at the 10:30 a.m. mark, hit the mid-day neutral and closed to the upside.

A re-cap:

  • Friday’s gainers ranged from +0.12% <NWBO +$0.0004> to +11.48% <FCSC +0.07> in 23 equities;
  • Friday’s decliners ranged from -0.34% < FATE -$0.04> to -6.92% <BLUE -$14.85> in 17 equities;

Volatility remained elevated as volume continued low yet slightly up. Review the alternation of the closes … does it speak to the coming week?

One of the multiple factors I use is volume, which displays the number of shares that have been traded during a session by day, week and month, focusing on the advance/decline lines (A/DL) as a way to assess the significance of changes in a security’s price.

Consider the iShares NASDAQ Biotechnology (IBB), the week ended down -1.43% after … look for the index to flop …

Last week’s IBB indicated:

  • Friday was up +0.06%
  • Thursday -0.98%
  • Wednesday -0.12%
  • Tuesday -0.71%
  • Monday +0.32%

What to be on the look-out for … lawmakers have until midnight Friday to approve a spending bill or see the government's funding authority lapse for the third time this year – more tension to the markets?

 

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Monday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a NEGATIVE -0.61% downside in Monday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is indicating a POSITIVE +0.08% upside in Monday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.75% downside in Monday’s pre-open

 

 

Companies in my headlights:

After a quadruple witching session, I’d let Monday shake out and watch for directional movement at the open especially with the downside influence of the indexes and ETFs.

There is NO news being generated by the sector as fundamentals are (in many companies) soft as technical (share trends) are in flux while trading volumes have been low.

We are in the final days of Q4 and FY17 financial results i.e. earnings season … I am still waiting for a “Big Chill” from one of the remainders who haven’t yet announced.

 

 

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.