RegMed Investors’ (RMi) pre-open; the market is set to open up more than 200 points as the potential of a trade war goes “on-hold”

May 21, 2018 7:30am

While the dice are rolled, the IBB (+0.61%) is jumping – the hand is hot yet the table is cold

As technicals, fundamentals and momentum seem “pushed” to a current optimism

Pre-open indications: 2 BUYs

Last week’s indication prediction review: 13 HITs and 7 miss (3 by pennies)

If you were a subscriber, and read Friday’s closing “brief” you’d understand how today’s indications shed light on share pricing!

Get set for a 200 point jump as a trade war is put “on hold” …

Dow futures are UP +0.91% (+225 points) and NASDAQ futures are UP +0.67% (+46 points)

U.S. stock index futures pointed to triple-digit gains at the open Monday morning, as China and the U.S. hit the pause button in trade issues

Europe higher as trade war concerns ease

Asia markets advance as investors digest weekend US-China trade developments

Data docket: NONE

Today’s indications:

• The iShares Nasdaq Biotechnology (IBB) is indicating an upside of 0.61% 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 an upside of +0.35% in Monday’s pre-open

Henry’omics:

Monday’s moves:  

To start the day, “U.S. stock index futures pointed to triple-digit gains at the open Monday morning, after Treasury Secretary Steven Mnuchin said the prospect of a trade war was "on hold" following an agreement to suspend tariff threats.” <CNBC>

After, “U.S. stocks closed lower on Friday amid elevated tensions between Washington and Beijing.”

From Friday’s night’s newsletter: “follow the bouncing share pricing as the advance/decline line (A/DL) follows its lead as the sector closes barely positive. A churning (trading) day of low volumes and NO swing oriented news.”

Always a skeptic, I am not expecting momentum to slow however, the sector is totally controlled by algorithmic - which will roll over you or with you with their “rules” to be followed in calculations.  

ETFs are a basket of weighted assets which also have a daily liquidity through a mechanism known as creation and redemption. The process of creation/redemption involves a few large specialized investors, known as authorized participants (APs).

• A measurement tool or a derivative to deceive?

A re-cap:

We are half-in for the month of May and the old adage of “sell in May and go away” has weakened as the new month measures thirteen (13) sessions with ten (10) positive and four (4) negative closes;

• In the last five  (5) sessions, the iShares NASDAQ Biotechnology (IBB) was down in one (Tuesday) and up in four (4) session for an aggregate of negative -0.66% after Friday’s +0.20%, Thursday’s +0.06% Wednesday’s +0.89%,  Tuesday’s -1.52% and last Monday’s +1.03%;
• Friday’s decliners ranged from -0.13% <OSIR -$0.01 > to -8.24% <EDIT -$3.13 > in 23 equities;
• Friday’s gainers ranged from +0.13% <BCLI +$0.01 > to +5.68% <VSTM +$0.27 > in 22 equities;

Last week:

• Friday closed barely NEGATIVE with 23 decliners, 22 advancers and o flats;
• Thursday closed POSITIVE with 20 decliners, 23 advancers and 2 flats;
• Wednesday closed POSITIVE with 15 decliners, 27 advancers and 3 flat;
• Tuesday closed barely NEGATIVE with 21 decliners, 20 advancers and 4 flat;
• Last Monday (May 14) closed POSITIVE with 10 decliners, 33 advancers and 2 flats;

Companies in my headlights:

Cellectis SA (CLLS) closed down -$0.10 to $29.39 with 170.2 K shares traded <3 month average = 317.8 K shares> after Thursday’s +$1.15 to $29.49 with 157.5 k shares traded after Wednesday’s +$0.33 to $28.34 with 106.4 K shares traded. CLLS announced that Calyxt (CLXT) has commenced a follow-on public offering of 3.05 M shares which could cut operating dollars flowing to a “sub” – Maintaining BUY;

Voyager Therapeutics (VYGR) closed down -$1.57 to $18.76 with 894.3 K shares traded <3 month average = 492.8 K shares> after Thursday’s +$0.08 to $20.33 and a positive +$0.01 aftermarket upside. VYGR has announced new data presentations at the American Society of Gene and Cell Therapy (ASGCT) of results for VY-SOD101, which targets the superoxide dismutase 1 gene (SOD1), the first mutant gene discovered to be causal for the development of amyotrophic lateral sclerosis (ALS). The results demonstrated that a one-time administration of VY-SOD101 lowered SOD1 mRNA levels by 78% in the spinal cord motor neurons of non-human primates. Additional new data included tolerability data in non-human primates for VY-HTT01 for Huntington’s disease, along with previous data with VY-HTT01 that demonstrated a 54% suppression of Huntingtin (HTT) mRNA in the non-human primate putamen after a single administration – Maintaining BUY;

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.