April 18, 2018 7:34am

Another warning sign is the gap between short-term and long-term valuation

Sit tight until someone turns on the lights

 

Are the overbought getting ripe?

 

Pre-open indication:  2 BUY and 2 SELLs

 

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


Higher open expected

Dow futures are UP +0.36% (+89 points) and NASDAQ futures are UP +0.41% (+28 points)

 

U.S. stock index futures ticked higher ahead of Wednesday's open

Europe markets edge higher

Asia markets climb following US rally as trade concerns linger

 

Data docket: the Federal Reserve's Beige Book is due out at 2 p.m. ET. Investors will be scouring the documents to see if there are any additional clues on how the U.S. economy is currently performing. Mortgage applications will come out at 7 a.m. ET, as per usual.

Political front: President Donald Trump will host the second day of his official working visit with Japanese Prime Minister Shinzo Abe in Florida,

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT 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 indicating a POSITIVE +0.29% upside in Wednesday’s pre-open

 

Henry’omics:

Today’s moves in premarket trade come after a strong finish on Tuesday, watch momentum – if it’s with us – BUY or against us, stay still to not get bitten !

From Tuesday night’s newsletter: “trading ranges flirt with the upside as the sector’s oversold surge. Volume was low with no news or real impetus.”

I also stated, “Some sector equities closed above their 50-day moving averages, a closely watched gauge for the short-term price momentum in a security. Ending above this level can signal a change in investor sentiment. The NASDAQ hasn’t breached that mark since March 21.”

 

Review the last 12 sessions of April’s closings (of 40 covered companies), there have been five (5) negative and five (5) positive closes with two (2) neutral:

  • Tuesday closed POSITIVE with 15 advancers, 24 advancers and 1 flat;
  • Monday closed NEGATIVE with 21 decliners, 14 advancers and 5 flats;
  • Friday closed barely NEGATIVE with 18 decliners, 17 advancers and 5 flats;
  • Thursday closed POSITIVE with 8 decliners, 30 advancers and 2 flats;
  • Wednesday (3/11) 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;
  • Last Friday (3/6) 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;
  • Tuesday closed NEUTRAL with 19 decliners, 19 advancers and 2 flats;
  • The previous Monday (3/1) closed NEGATIVE with 31 decliners, 9 advancers and 0 flats;

 

A re-cap:

  • Tuesday’s decliners ranged from -0.16% <MESO -$0.01 > to -12.60% < BLCM -$1.13> in 15 equities;
  • Tuesday’s gainers ranged from +0.21% <CLBS +$0.01 > to +9.71% <ONVO +$0.10> in 24 equities;

 

Consider the iShares NASDAQ Biotechnology (IBB) over the last twelve (12) sessions was up +2.95%:

  • Tuesday was up +1.94%
  • Monday was (3/16) down -0.68%
  • Friday was down -0.71
  • Thursday was up +1.32%
  • 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:  Are we coming up against major resistance?

 

Company in my headlights:

Applied Genetic Technologies (AGTC) closed up +$0.35 to $5.26 with 276.6 K shares traded <3 month average = 106.2 K shares> after Monday’s -$0.15 to $4.90 with 103.5 K shares traded, Friday’s +$0.45 to $5.05 with 155.9 k shares traded and Thursday’s +$0.60 to $4.60 with 220.6 K shares traded.  AGTC has completed enrollment in a clinical study for the treatment of x-linked retinoschisis (XLRS). The real issue is do they have the bench strength to oversee the trial protocols? I say NO! There is also a question of being undervalued in relation to comparables yet, there is a question of execution and oversight of the protocols of clinical trials. Six (6) sessions ago, AGTC traded at $3.70, that’s a $1.55 or +29.4% premium in the share price that may NOT be sustainable – However, news has it - AGTC dosed its first patient in P1/2 clinical study of Gene Therapy for the treatment of X-Linked Retinitis Pigmentosa SELL to BUY;

Bellicum Pharmaceuticals (BLCM) closed down -$1.13 to $ after Monday’s -$0.01 to $8.97 and priced a 7 M share offering at $7.50 – a kiss of depreciation (-21% to -23%) but $60 M in cash richer – SELL to BUY;

Sangamo Therapeutics (SGMO) closed up +$1.625 to $19.52 with 1.86 M shares traded <3 month average = 2.3 M shares>. The aftermarket indication is a downside of -$0.12 or -0.64% - SELL;

Spark Therapeutics (ONCE) closed up +$2.90 to $80.69 with 566.2 K shares traded <3 month average = 677.2 K shares> and an aftermarket indication of +$0.31 or +0.38%. Overbought - SELL

 

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.