April 10, 2018 8:00am
Fasten your share price as the battle for sustainability is a go …
As yesterday’s volatility foreshadows a slower pricing ride
The iShares Nasdaq Biotechnology (IBB) is indicating a +1.52% upside after Monday’s +1.82% upside; having been down -3.48% in the last six (6) sessions
Market timed pre-open indication: 3 BUY and 2 SELLs
Where the understanding of the indications shed light on share pricing!
Higher open expected
Dow futures are UP +1.27% (+306 points) and NASDAQ futures are UP +1.52% (+99 points)
U.S. stocks looked headed for a strong bounce on Tuesday, as traders took cheer from promises by Chinese President Xi Jinping to open the country’s markets
European markets were higher
Asian markets bounced on Tuesday after Chinese President Xi Jinping pledged to proceed with measures that will further open up China.
Data docket: The National Federation of Independent Businesses index of small-business optimism in March is due at 6 a.m. ET. A reading on producer prices for the same month is due at 8:30 a.m. ET, followed by a report on February wholesale inventories at 10 a.m. ET.
Political front: Washington could very well be at the heart of any major market moves Tuesday, with a number of major events expected: Facebook CEO Mark Zuckerberg testifies on Capitol Hill, the White House is expected to respond to the chemical attacks on Syria, the FBI raided the home and office of President Donald Trump's personal lawyer, markets will be watching for any further developments in the Mueller investigation.
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +1.52% upside in Tuesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +2% upside in Tuesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Tuesday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a POSITIVE +1.16% upside in Tuesday’s pre-open
Henry’omics:
Today – Listen to the message of the markets as it opens; the sector is highly volatile and the yesterday’s upswing is on low to moderate volume. The question is … will traders trust an upside continuation or “take some money off the table” if Washington “matters> have a blow-back effect to the market.
From Monday night’s newsletter: “enjoying the high as the sector “feels” the news of NVS’ acquisition of AXVS and RGNX license pay-out and potential milestones that affected sentiment and were thoroughly welcomed. However, new heights will be a test with an inevitable downslide as pre-market indications were sold into as the session progressed with profit-taking swings; be ready for an overbought “situation” – not being a “kill-joy” but, a sector realist!”
Review the last 5 session’s close (of 40 covered companies):
- Monday closed POSITIVE with 12 decliners, 23 advancers and 5 flats;
- Friday closed NEGATIVE with 32 decliners, 7 advancers and 1 flat;
- Thursday closed NEGATIVE with 25 decliners, 11 advancers and 4 flats;
- Wednesday closed POSITIVE with 11 decliners, 28 advancers and 1 flat;
- Last Tuesday closed NEUTRAL with 19 decliners, 19 advancers and 2 flats;
A re-cap:
- Monday’s decliners ranged from -0.02% <FCSC -$0.00 > to -12.65% <KOOL -$0.21 > in 12 equities;
- Monday’s gainers ranged from +0.78% <BLCM +$0.05 > to +16.44% <QURE +$3.61 > in 23 equities;
Consider the iShares NASDAQ Biotechnology (IBB) over the last six (6) sessions it’s still down -3.48%: the upside should be readied
- Monday was up +1.82%
- Friday was down -3.01%
- Thursday was down -1.62%
- Wednesday +2.91%
- Tuesday +0.37%
- Last Monday -3.95%
My evaluation: I’d be watchful today re the sector’s momentum to see if it “clicks” upward – if it does “sell into it” and if it doesn’t “just wait” …
Company in my headlights - speculation:
Biostage (BSTG) closed up +$0.19 to $2.61 with 2.2 K shares traded <3 month average = 9.4 K shares>. KPMG, their accounting firm has dropped their accounting overview – over an on-going concern issue (?) just another reason on top of many to exit this equity after the MANY misdeeds of creating a $47 M deficit over three (3) years with NO significant results; other than a whole new development target – SELL;
Neuralstem (CUR) closed up +$0.06 to $1.78 and has a positive pre-market upside of $0.09 or +5.33 on news that it completed the first surgery in the second, cervical injury cohort of a Phase 1 clinical trial in patients with chronic spinal cord injury (cSCI). NSI-566 is Neuralstem’s lead stem cell therapy candidate - BUY
Regenxbio (RGNX) closed up +$4.25 to $31.45 with 2.756 M shares traded <3 month average = 391.7 K shares>. A better than good move on Monday as the value of a license was established; however, the monies are not in the bank quite yet and the run-up will be subject to profit-taking. The aftermarket indication is a NEGATIVE -$0.05 or -0.16%. With a market that is subjugated by political issues, I’d not rest on my “day-up” positions – BUY to SELL;
Cellectis (CLLS) closed up +$0.30 to $29.13 with 4.09 K shares traded after Friday’s -$0.17 to $28.83 with 777.5 K shares traded after the ADS offering priced at $31.00 was completed that followed Thursday’s rise of $4.10 to $29.00 with 5.1 M shares traded after Wednesday’s -$5.43 to $33.10 with 1.48 M shares traded <3 month average = 311.8 K shares>. The pre-market indication is a positive +$0.40 or +2.95 – Maintaining BUY;
Sangamo Therapeutics (SGMO) closed up +$0.85 to $17.80 with 3.66 M shares traded after Friday’s -$0.55 to $16.95 with 2.53 M shares traded after Thursday’s -$1.40 to $17.50 with 2.63 M shares traded after Wednesday’s +$1.10 to $18.90 with 2.16 M shares traded <3 month average = 2.198 M shares>. The aftermarket indication is a POSITIVE +$0.15 or +0.84% - Maintaining 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.
