April 11, 2018 7:44am
The suddenness of the pick-up of volatility could result in distressing losses
The iShares Nasdaq Biotechnology (IBB) is indicating NEGATIVE -0.33% downside after Tuesday’s +2.82% following Monday’s +1.82%
Investors should hold off on BUY orders after Trump tells “Russia to get ready for missiles coming to Syria”
Pre-open indication: 1 BUY and 4 SELLs
Where the understanding of the indications shed light on share pricing!
Lower open expected
Dow futures are DOWN -1.06 % (-278 points) and NASDAQ futures are DOWN -1.08% (-72 points)
U.S. stock index futures dropped ahead of the open on Wednesday; as the major indexes were set to give back some of the strong gains seen in the previous trading session.
EU markets moved lower as investors began to focus on earnings at the start of a new reporting season.
Asian stocks closed mixed, with several regional markets giving up early gains after recent trade fears waned in yesterday’s session.
Data docket: mortgage applications will be released at 7 a.m. ET, followed by the consumer price index (CPI) at 8:30 a.m. ET and the monthly treasury statement at 2 p.m. ET.
Political front: Talk of a potential trade war continues to rattle sentiment, while Facebook (FB) kept many glued to the hearing – a big issue was the illiteracy of Senators re technology of the FB platform. Wall Street preoccupied. Facebook’s Zuckerberg is due to speak to the House Energy and Commerce Committee. The lingering problem – the possibility of a U.S. military strike in Syria …?
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is indicating a NEGATIVE -0.33% downside in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is a NEGATIVE -0.96% downside indicating in Wednesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Wednesday’s pre-open;
- The iShares Russell 2000 (IWM) is a NEGATIVE -0.71% downside indicating in Wednesday’s pre-open
Henry’omics:
Today – Investors should hold off on BUY orders. Forewarned is forearmed!
From Tuesday night’s newsletter: “chugging along. The question is and will be the velocity of momentum and resistance as strength keeps budding.”
“I am still of the mind, “The issue of a dramatic incline will beget upcoming woes as volume was low to the downside and high to the upside.”
Review the last 5 session’s close (of 40 covered companies):
- Tuesday closed POSITIVE with 7 advancers, 32 advancers and 1 flat;
- 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;
- Last Wednesday closed POSITIVE with 11 decliners, 28 advancers and 1 flat;
A re-cap:
- Tuesday’s decliners ranged from -0.38% <BSTG -$0.01 > to -6.67% < AST -$0.10> in 7 equities;
- Tuesday’s gainers ranged from +0.62% <BCLI +$0.02 > to +18.92% <RGNX +$5.95> in 32 equities;
Consider the iShares NASDAQ Biotechnology (IBB) over the last seven (7) sessions it’s still down -0.73%: I percieve a DECLINE …
- Tuesday was up +2.75%
- 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: Unfortunately, I believe the sector will trend to the downside as if we focus on recent volatilty and Advance/Decline Lines (A/DL) swings.
Company in my headlights - speculation:
Biostage (BSTG) closed down -$0.01 to $2.60 with 1.65 K shares traded <3 month average = 9.24 K shares> after Monday’s +$0.19 to $2.61 with 2.2 K shares traded. 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. There are JUST TOO MANY transparency issues and the Boston Business Journal did an article of their terminal death suit; even if they are covered by insurance, there will be huge legal costs to keep the deposition doors open – Maintaining SELL;
bluebird bio (BLUE) closed up +$1.50 to $174.75 with 886.5 K shares traded <3 month average = 898.8 K shares>. I have been a BLUE upside denier having felt it was overpriced. The aftermarket indication is a NEGATIVE -$1.10 or -0.63% - SELL;
Neuralstem (CUR) closed up +$0.23 to $1.90 with 3.125 M shares traded <3 month average = 200.5 K shares> after Monday’s +$0.06 to $1.78 on news that it completed the first surgery in the second, cervical injury cohort of a P1 clinical trial in patients with chronic spinal cord injury (cSCI). The aftermarket indication is a NEGATIVE -$0.03 or -1.58% - BUY to SELL
Regenxbio (RGNX) closed up again +$5.45 to $37.40 with 1.68 M shares traded <3 month average = 376.2 K shares> after Monday’s +$4.25 to $31.45 with 2.756 M shares traded. 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 – Maintaining SELL;
Cellectis (CLLS) closed up +$0.67 to $29.80 with 343.5 K shares traded <3 month average = 325.5 K shares> after Monday’s +$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 – 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.
