March 29, 2018 8:09am

… After an explosion of sector volatility and even lower volume

Yesterday indexes were up at the open and closed positive yet a lot of money came “off the table”

 

… Are we ready to flip to the upside?

I am …

The IBB and XLV are NOT indicating while the XBI (+0.56%) and IWM (+0.51%) are up

 

 

If you had been subscribing, you’d be aware of the issues affecting the upcoming session

 

Higher open expected

 

Dow futures are UP +0.42% (+101 points) and NASDAQ futures are UP +0.93% (+61 points)

 

U.S. stock index futures posted minor gains ahead of Thursday's open

Stocks in Europe hovered around the flat line

Asian stocks closed mostly higher

 

Today’s concern: worries around social media and technology taking or keeping down the cell therapy sector remain at the forefront of investors' minds.

Data docket:  economic data is set to take center stage. At 8:30 a.m. ET, jobless claims are expected to be published, along with personal income and outlays data. At 9:45 a.m. ET, Chicago purchasing managers' index (PMI) is slated to come out, followed by consumer sentiment figures at 10 a.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Thursday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.56% upside 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 POSITIVE +0.51% upside in Thursday’s pre-open

 

Henry’omics:

What to be on the look-out for … volume to the upside!

And that the U.S. financial markets will be closed on March 30 for Good Friday. The Easter weekend, including Easter Monday on April 2, also coincides with Passover this year, which begins on Friday.

As I had stated, “Algorithms should be on our side for once!” – yesterday they were NOT.” - How about today?

 

Review the last 5 session’s close (of 40 covered companies):

  • Wednesday closed NEGATIVE with 26 decliners, 13 advancers and 1 flat;
  • Tuesday closed NEGATIVE with 35 decliners, 2 advancers and 3 flat;
  • Monday closed POSITIVE with 17 decliners, 21 advancers and 2 flats;
  • Friday closed NEGATIVE with 28 decliners, 8 advancers and 4 flats;
  • Last Thursday closed NEGATIVE with 26 decliners, 11 advancers and 3 flats;

 

Volatility (the VIX) is still a big driver having been up again +0.76% on Wednesday after Tuesday’s +6.99% on Monday dropped -15.44% yesterday after jumping Friday +6.56%,  Thursday’s +30.68% and last Wednesday’s -3.71 as volume continued low.

 

From Wednesday’s night’s newsletter; the sector sputters and fails to rebound as the NASDAQ (-0.85%) slipped and the IBB (+0.82%) skipped along. Our universe is getting more than depressed. My gut instinct was for an upside play” - even I thought a bounce would be in the cards – it WASN’T! “

My bad, just another day in the big casino!

 

What I am “feeling” and seeing this a.m.:

…. Anxious but, the long weekend will give investors a breather after weeks of turbulence.

 

A re-cap:

  • Wednesday’s decliners ranged from -0.31% <FCSC -$0.0018 > to -8.30% <AXGN -$3.30 > in 26 equities;
  • Wednesday’s gainers ranged from +0.41% <BTX +$0.01> to +4.90% <MDXG +$0.33> in 13 equities;

 

Consider the iShares NASDAQ Biotechnology (IBB) over the last eight (8) sessions is still down -7.26%:

  • Wednesday closed up +0.82%
  • Tuesday was down -2.77%
  • Monday was up +2.68%...
  • Friday was down -2.63%
  • Thursday was down -2.30%
  • Wednesday was down -0.98%
  • Tuesday was up +0.02%
  • Last Monday was down -2%

 

My evaluation:

Questionable, as Q1 and the month are ending as news has been minimal, uncertainty about clinical trial risk is up and expectation is next to nothing …

I am waiting to see the open and the 11:30 a.m. numbers … before I push any button!

 

Companies in my headlights:

Vericel (VCEL) closed down -$0.20 to $9.50 and in the aftermarket is up +$0.40 – BUY;

 

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.