April 25, 2018 7:41am

The question is, has a bottom been ascertained?

 

I don’t see any immediate signs yet, the rumblings have begun as low volume and tight ranges are struggling to break out

Although, trading within ranges has provided few clues about where equities could be headed.

It’s time for the oversold to be recognized

 

Pre-open indications: 1 BUY and 1 SELL

 

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

A negative open expected

Dow futures are DOWN -0.31% (-75 points) and NASDAQ futures are DOWN -0.77% (-50 points)

 

US stocks are ordaining a negative open;

European markets slumped as rising yields put investors on edge;

Most markets in Asia fell while Australia and New Zealand were shut for Anzac day public holiday.

 

Data docket: mortgage applications are scheduled to come out at 7 a.m. ET.

 

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 NEGATIVE -0.8% downside in Wednesday’s pre-open

 

Henry’omics:

Today’s moves:  NASDAQ and the S&P 500 futures indicate a negative start to Wednesday's session.

There has been a blatant shift in the sector since the first of the month as investors didn’t expecting the “ceilings” to collapse, but much of the enthusiasm for equities seen over the past nine (9) months has been dissipating, with an increasing number seeing a greater risk of losses.

Always an optimist, the sector should be preparing for a comeback!

 

From Monday night’s newsletter: “…an embattled sector with Tuesday being the fifth (5th) losing session in a row. But, understand … “No bad (clinical) news is good news.”

 

Market issues:  U.S. 10-year government bond yield hit 3% early Tuesday for the first time in about four years. So, what does that mean? Is it just a psychological barrier or a key threshold that could augur ill for the broader market? <MarketWatch>

A re-cap:

  • There have been 17 sessions of April’s closings,  there have been ten (10) negative closes,  six (6) positive closes and one (1) neutral close (of 40 covered companies);
  • In the last six (6) sessions, the iShares NASDAQ Biotechnology (IBB) was down in five (5) and up in two (2) sessions for an aggregate of a negative -0.12% with Tuesday’s -1.445%, Monday (-0.16%), Friday (-0.88%), Thursday (-1.36) and last Wednesday (+0.07%);
  • Tuesday’s decliners ranged from -0.09% <FATE -$0.91 > to -7.37% <QURE -$2.29 > in 25 equities;
  • Tuesday’s gainers ranged from +0.35% <CYTX +$0.001> to +2.33% <OSIR +$0.18 > in 9 equities;

 

My daily evaluation:  The sector is OVERSOLD as diminished sentiment, escalating volatility have swung sector equities around in both directions (mostly down) while the “usual suspects” trade in a fairly narrow range.

I am hoping, betting and “praying for “ascension” – the act and process of rising!

 

Company in my headlights:

Pluristem Therapeutics (PSTI) closed down -$0.01 at $1.20.  the U.S. FDA has cleared PSTI’s Investigational Drug Application (IND) for a P3 study of its PLX-PAD cell therapy in the treatment of muscle injury following surgical repair (arthroplasty) of the hip joint due to fracture. PSTI is also in discussions with several EU countries to approve this study in the EU expecting to begin patient enrollment in 2018. Non-dilutive funding totaling $8.7 million (7.4 million Euros) has been granted to this study from Horizon 2020, the European Union’s largest research and innovation program. NEWS is always a stimulant to PSTI’s share pricing, the question is its sustainability – take the pop with a pre-market indication of +$0.08 or +6.67% – BUY;

Sangamo Therapeutics (SGMO) closed down -$0.35 to $17.80 and is down -$1.30 or -7.33% in the aftermarket (so far) after proposing a $200 M offering. SGMO has 86.34 M shares outstanding with a float of 84.76 M shares. BofA Merrill Lynch, J.P. Morgan Securities LLC and Cowen and Company, LLC are acting as joint book-running managers for the offering – 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.