May 7, 2018 7:51am

This week’s count is eighteen (18) releases in the sector which usually beget a downdraft before they are announced

 

Another ride on a slippery slope …?

And then, once LPS (loss-per-share) releases are out, what’s the recovery period without news?

 

I produce performance in both up- and down markets. This newsletter satisfies these dual criteria, with both reasonable returns and with a definition of risk. Anxious investors need to understand that return on an investment is achieved short-term (in “our” universe and in this market) which will impact your portfolio to justify the utilization of your capital.

 

The understanding of indications sheds light on share pricing!

A positive open expected

Dow futures are UP +0.34% (+83 points) and NASDAQ futures +0.60% (+41 points)

 

U.S. stock index futures are looking solid ahead of Monday's open, drawing upon similar movements seen in international markets.

European markets slightly higher

Asian stocks closed mixed, with mainland China markets outperforming.

 

Data docket: consumer credit is due out at 3 p.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Monday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Monday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Monday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a POSIYIVE +0.38% upside in Monday’s pre-open

 

Henry’omics:

Today’s moves:  Futures were higher this morning following a Friday rally that saw the Dow rise 332 points, or nearly 1.4%, and the S&P 500 jump 1.3%.  The moves in pre-market trade come as markets around the world showed a mixed to positive picture on the first trading day of the week.

From Friday’s night’s newsletter: a welcomed upside for the oversold; the sector cruised as tailwinds proffered.  A couple of “beats’ to consensus and expectation lifted the cloud cover yet, the “ups” were off the mid-day highs validating there is continuous profiteering in this market and it’s not over.”

I also stated, “The oversold were recognized but, will it be sustained?”

 

Review the past session of 45 covered companies – new batting line-up:

  • Friday closed POSITIVE with 8 decliners, 34 advancers and 3 flat
  • Thursday closed NEGATIVE with 29 decliners, 11 advancers and 5 flats;
  • Wednesday closed POSITIVE with 15 decliners, 22 advancers and 8 flats;
  • Tuesday closed POSITIVE with 15 decliners, 25 advancers and 5 flats;

 

A re-cap:

  • A new month to measure … in the second week’s sessions in May, after the first's - three (3) positive and one (1) negative closes;
  • In the last five (5) sessions, the iShares NASDAQ Biotechnology (IBB) was down in five (5) and up in two (2) session for an aggregate of negative -2.8% after Friday’s +1.06%, Thursday’s -1.36%, Wednesday’s -1.32, Tuesday’s +0.39% and last Monday’s -1.86%,
  • Friday’s decliners ranged from -0.28% <XON -$0.05 > to -16.14% <ADVM -$1.025 > in 8 equities;
  • Friday’s gainers ranged from +0.17% <SAGE +$0.25 > to +17.20% <SLDB +$2.77 > in 34 equities;

 

Out and about: quarterly releases, this week:

Monday (5/7): RARE, CLLS and GBT

  • Tuesday (5/8): AGTC, VCEL, SGMO, ONCE, RGNX
  • Wednesday (5/9): BOLD
  • Thursday (5/10): ATHX, BLFS, BSTG, CAPR, CLBS, FATE, HSGX, and BTX

 

My daily evaluation: Reiterating, “What’s missing from the sector is something to make investors jump through the usual hoops – low volume, volatility and sentiment’s depression! I also don’t see pronounced catalysts, and if weak earnings reports aren’t enough, what pushes us away from the SELL button – losses but is there a reason to push the BUY button to even consider doubling down for a perceived upside?”

 

Company in my headlights:

 

“Let’m” ride to see which paddock they end up in … the big-tail-loss pens or the happy-to-see-you corrals?”

 

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.