April 12, 2018 7:43am

What’s a “bad hand” today?

If you know which hands is always a fold 'em, you can have an upper hand and perhaps not bet the pot and lose

 

The iShares Nasdaq Biotechnology (IBB) is NOT indicating after Wednesday’s negative -0.35% downside after Tuesday’s +2.82% following Monday’s +1.82%

 

Pre-open indication:  3 BUY and 4 SELLs

 

Where the understanding of the indications shed light on share pricing!


Higher open expected

Dow futures are UP +0.50% (+120 points) and NASDAQ futures are UP +0.57% (+38 points)

 

US futures post mild gains ahead of the open amid Middle East tensions

European markets are mixed

Asian stocks edged down as investor confidence wavered amid geopolitical tensions.

 

Data docket:  jobless claims are due out at 8:30 a.m. ET, along with import prices.

Political front: Will he or won’t the President fire a missile and can Facebook’s (FB) Zuckerberg make the oversight changes needed and keep public perception on his side?

 

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 POSITIVE +0.46% upside in Thursday’s pre-open

 

Henry’omics:

Today – I can’t see “the whites of their eyes” to push a BUY or SELL button!

From Wednesday night’s newsletter: “sector pricing withered after the prior two session rally with today’s neutral sector as the session’s braking is constrained by volume inhibiting advance/decline lines and relative strength. We’re observing the effects of risk-aversion from last Friday’s oversold condition.”

As I had stated, “A number of traders and investors, I spoke with today -agree thatthe path of least resistance for the sector’s equities is DOWN! Two up sessions followed by two down topped with today’s neutral stance – could be a bubble indicator… which hasn’t stopped trigger-happy traders from ramping up their “short” option bets … What's wagging the dog's tail ... the money that is made in “our” universe is NOT being near and long-term oriented but by being a short-termer!”

I don't have the confidence in the upside today.

 

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

  • Wednesday closed NEUTRAL with 19 decliners, 19 advancers and 2 flats;
  • 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;
  • Last Thursday closed NEGATIVE with 25 decliners, 11 advancers and 4 flats;

 

A re-cap:

  • Wednesday’s decliners ranged from -0.01% <ONCE -$0.01 > to -6.42% <RGNX -$2.40 > in 19 equities;
  • Wednesday’s gainers ranged from +0.26% <IMUC +$0.001 > to +13.82% <FATE +$1.39 > in 19 equities;

 

Consider the iShares NASDAQ Biotechnology (IBB) over the last eight (8) sessions was up +1.08%: I still see a DECLINE …

  • Wednesday (3/11) was down -0.35%
  • Tuesday was up +2.75%
  • Monday was up +1.82%
  • Friday (3/6) was down -3.01%
  • Thursday was down -1.62%
  • Wednesday +2.91%
  • Tuesday +0.37%
  • The previous Monday (3/2) -3.95%

 

My evaluation:  I have been right so far this week, patience is a virtue so I will wait to see the open and the 11:30 a.m. “numbers”

 

Company in my headlights:

Bellicum Pharmaceuticals (BLCM) closed up +$0.10 to $6.85 with 439.6 K shares traded <3 month average = 868.4 K shares>. The FDA has lifted the clinical hold on studies of BPX-501 in the U.S. The decision follows consultation with the FDA and agreement on amendments to the study protocols including guidance on monitoring and management of neurologic adverse events. BLCM will be working with U.S. clinical sites to resume patient recruitment based on the amended protocols. The FDA clinical hold did not affect the BP-004 registrational trial in Europe, which is fully enrolled – BUY;

Biostage (BSTG) closed flat at $2.60 after Tuesday’s -$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. The Boston Business Journal did an article of BSTG’s terminal death suit; even if they are covered by insurance, there will be huge legal costs to keep the deposition doors open – Maintaining SELL;

Cellectis (CLLS) closed up +$0.47 to $30.27 with 559.7 K shares traded <3 month average = 330 K shares> after Tuesday’s +$0.67 to $29.80 with 343.5 K shares traded, Monday’s +$0.30 to $29.13 with 4.09 K shares traded and last Friday’s -$0.17 to $28.83 with 777.5 K shares traded after the ADS offering priced at $31.00 was completed having raised $167.3 M after deducting expenses. The aftermarket indication is a POSITIVE +$0.09 or +0.31% – Maintaining BUY;

Fate Therapeutics (FATE) closed up +$1.39 to $11.45 with 1.127 M shares <3 month average = 756.4 K shares>. The aftermarket indication is a NEGATIVE -$0.15 or -1.31% - SELL;

Regenxbio (RGNX) closed down -$0.2.40 to $35.00 with 848.3 K shares traded <3 month average = 391.7 K shares> after Tuesday’s +$5.45 to $37.40 with 1.68 M shares traded 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 -$0.25 or -0.71%. With a market that is subjugated by political issues, I still would not rest on any positions – Maintaining SELL;

uniQuire (QURE) closed up +$1.98 to $29.01 with 597.5 K shares traded <3 month average = 367.1 K shares>. QURE, a gene therapy for hemophilia B and a treatment for Huntington’s disease has risen 370% in the past year and has more than fully recovered from the drop following it’s earnings announcement on 3/14.OVERBOUGHT, take some profit as after four (4) sessions a premium of $7.05 or +24.3% exists. The aftermarket indication is a NEGATIVE -$0.28 or -0.98% - SELL;

Vericel (VCEL) closed up +$0.25 to $12.25 with 1.46 M shares traded <3 month average = 1 M shares>. It has been said, “The move came with news that the tissue-therapy company’s CEO will present at an industry investor day on 4/17. The share price has leapt dramatically since 3/5 after reporting record revenues and improved net income for Q4/17 and FY17. One issue is VCEL is dependent on an ATM share “loan” which has to be sold into any highs. The aftermarket indication is a POSITIVE +$0.50 or +4.08% - 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.