April 26, 2018 7:44am

As the relative strength index (RSI) is neither overbought nor oversold.

Yet the extended market indication of the IBB was +0.43% after closing -0.1% as the XBI (+0.17%) and IWM (+0.19%) are up

 

Pre-open indications: 2 BUY and 1 SELL

 

Financings: Sangamo Therapeutics (SGMO) prices 23.31 M offering at $16.25 to raise $200 M

Q1/18 financial results/earnings: MiMedx Group (MDXG)

 

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

Positive open expected

Dow futures are UP +0.12% (+29 points) and NASDAQ futures UP +0.51% (+34 points)

 

US stocks are set to open higher

European markets were higher

Asian markets traded mixed; Chinese mainland markets decline more than 1%

 

Data docket: jobless claims, durable goods and advance economic indicators are all due out at 8:30 a.m. ET, followed by housing vacancies at 10 a.m. ET and the Kansas City Fed Manufacturing Index at 11 a.m. ET

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.43% upside 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 indicating a POSITIVE +0.17% upside in Thursday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.19% upside in Thursday’s pre-open

 

Henry’omics:

Today’s moves:  “The moves in pre-market trade come after markets in the U.S. finished the previous session mostly higher, as positive earnings offset concerns surrounding rising yields. While Asia and Europe have shown a slight rebound on Thursday, investors still remain cautious on moves in the bond market.” <CNBC>

This is the time (Thursday) to be neither overly aggressive nor frozen

If you panic and sold, it’s time to consider getting back in.

The sector can easily go up from here whether today, tomorrow or Monday – click some BUY orders.

 

From Wednesday’s night’s newsletter: “… equities flip, flop while playing catch-up after days of emotionless trading and panic as momentum and volume peaked as few stocks got pushed uphill.”

 

A re-cap:

  • There have been 18 sessions of April’s closings,  there have been eleven (11) 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 one (1) sessions for an aggregate of a negative -0.13% with Wednesday’s -0.01%, Tuesday’s -1.445%, Monday (-0.16%), Friday (-0.88%), Thursday (-1.36) and last Wednesday (+0.07%);
  • Wednesday’s decliners ranged from -0.25% <BLUE -$0.40 > to -6.49% <KOOL -$0.10 > in 22 equities;
  • Wednesday’s gainers ranged from +0.65% <AXGN +$0.25 > to +12% <AST +$0.15 > in 15 equities;

 

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

We saw the sector flipping and flopping ultimately closing down again yet the 10:30 to 11:30 a.m. “numbers were positive – there will be some better movement today!

 

Company in my headlights:

MiMedx Group (MDXG) closed up +$0.81 to $8.24 (+10.90% increase) with 4.73 M shares traded <3 month average = 3.5 M>. Q1/18 earnings are to be announced today and I would usually be on the short-side but, I perceive MDXG will “put-out” some good numbers as sentiment is strong from yesterday’s moves considering 2/12/18’s share pricing was $15.69 before the Q4 issues – BUY:

Osiris (OSIR) closed down -$0.10 to $7.58 with 2,122 shares traded <3 month average = 30.3 K shares>. A new peer-reviewed manuscript entitled “Effectiveness of viable cryopreserved placental membranes for management of diabetic foot ulcers in a real world setting” has been published in the Wound Repair and Regeneration. In a prior multicenter, randomized, controlled clinical trial (RCT), application of our viable cryopreserved placental membrane product, Grafix®, to chronic diabetic foot ulcers (DFUs) resulted in a significantly higher proportion of wound closure by 12 weeks compared to control (62% vs. 21%)1.  The primary endpoint was the proportion of DFUs that achieved complete closure. Other endpoints included time and number of grafts to closure, probability of wound closure by week 12, and the number of wound-related infections and amputations – BUY;

Sangamo Therapeutics (SGMO) closed down -$0.50 to $17.30. The $200 M offering has been priced at $16.25 with the shares still anticipating a -$0.50 or -2.60% drop in the pre-market – Maintaining 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.