April 20, 2018 7:36am

News is the life line of the sector and also one of the roots of sentiment’s negativity

 

The assumption behind news is a question, does it “shape” share pricing and for how long?

 

Pre-open indications:  NONE, I am NOT in the guessing game 

 

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

Questionable or negative  open expected

Dow futures are DOWN -0.04% (-11 points) and NASDAQ futures are DOWN -0.04% (-3 points)

 

U.S. stock index futures are changing to the upside in Friday's open

European markets edged higher

Asian markets closed slightly lower, tracking yesterday’s lower close

 

Data docket: NONE

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Friday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Friday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Friday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.03% upside in Friday’s pre-open

 

Henry’omics:

Today’s moves: pure speculation even as the oversold stand-out or are they actually undervalued in this … market?

… Many sector companies are in denial as to the viability of their development programs while transparency is at a low and investor communication barely exists …

 

From Thursday night’s newsletter: “…sector tanks as weakness is the word of the session as the market indexes closed down while ETFs create inefficiencies in the market; sector equities fell as ETFs get bought or sold, as opposed to trading on their own fundamentals. Remember they are a synthetic instrument, which I call a derivative.”

I also stated, “The sector seems tired as low volume and decreasing investor portfolio return are a constraining factor that could overshadow below estimate financial returns i.e. earnings. ETFs own a greater portion of small companies, which could contribute to small-cap volatility.”

 

A re-cap:  In 14 sessions of April’s closings (of 40 covered companies) there have been six (6) negative and six (6) positive and two (2) neutral closes:

  • Thursday’s decliners ranged from -0.18% <FATE -$0.02 > to -12.81% <NWBO -$0.026> in 28 equities;
  • Thursday’s gainers ranged from +0.25% <VSTM +$0.01 > to +5.44% < OSIR +$0.40> in 9 equities;

 

In six (6) sessions, the iShares NASDAQ Biotechnology (IBB) is up +1.26%

  • Thursday was down -1.36%
  • Wednesday +0.07%
  • Tuesday was up +1.94%
  • Monday -0.68%
  • Friday was down -0.71%
  • Last Thursday +1.32%

 

My evaluation:  start thinking and when the time is right, start drinking to start celebrating NOT making buying or selling missteps

 

Company in my headlights:

… I am NOT exercising MY free speech rights or opinions – today!

 

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.