May 29, 2018 8:38am

Three (3) more sessions until May ends and the June focuses the quarter

Downdrafts are swings without concern to value as algorithms usually pop the cork

But, when don’t they fuel pessimism?

 

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

 

Out and about: Mesoblast Limited (MESO) has entered into a partnership with Cartherics Pty Ltd to develop allogeneic ‘off-the-shelf’ CAR-T cells armed with multiple targeting receptors for use in solid cancers. The program will be funded by A$12.6 million ($US9.6 million) in direct and in-kind contributions from collaborators in the Australian Government’s Cooperative Research Centres Program (CRC-P), including Cartherics, Monash University, Hudson Institute of Medical Research and Cell Therapies Pty Ltd - BUY

 

Get set for a LOWER open

Dow futures are DOWN -0.67% (-166 points) and NASDAQ futures are DOWN -0.59% (-41 points)

 

U.S. stock index futures dropped sharply ahead of Tuesday's open, as investors turned their attention to data and earnings amid a stormy geopolitical climate.

European stocks fell Tuesday morning amid renewed fears of a euro zone break-up risk in Italy and political turmoil in Spain.

Major markets in Asia close lower amid dampened sentiment

 

Data docket: the S&P/Case-Shiller house price index is set to be released at 9 a.m. ET, followed by consumer confidence at 10 a.m. ET and the Dallas Fed's manufacturing survey at 10:30 a.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a DOWNSIDE of -0.07% in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a DOWNSIDE of -0.54% in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is indicating a DOWNSIDE of -0.14% in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a DOWNSIDE of -0.74% in Tuesday’s pre-open

 

Out and about: Mesoblast Limited (MESO) has entered into a partnership with Cartherics Pty Ltd to develop allogeneic ‘off-the-shelf’ CAR-T cells armed with multiple targeting receptors for use in solid cancers. Off the shelf CAR-T therapies have the potential to reduce costs dramatically and open up this very effective treatment to millions of cancer patients across the world. The initial targets are relapsed ovarian and gastric cancers. Mesoblast and Cartherics will jointly own the intellectual property produced using their combined technologies. The program will be funded by A$12.6 million ($US9.6 million) in direct and in-kind contributions from collaborators in the Australian Government’s Cooperative Research Centres Program (CRC-P), including Cartherics, Monash University, Hudson Institute of Medical Research and Cell Therapies Pty Ltd.

 

Henry’omics:

From Friday night’s newsletter: “spritz, slips and a fritz as volume stayed low and. Review those equities with ATMs; they are there to sell on debt laden stocks while Friday was a lucky day to close flat (6) versus a splat.”

As I had stated, “There is not too much to say, the sector ended lower as a holiday weekend interfered with any hope for an upside as many fear geopolitical headlines that could affect Tuesday’s market!”

On the holiday Monday, Asian markets close mixed, with oil prices extending losses while Italian stocks sank 2% in thin trading session.

Tuesday’s moves:  The moves in pre-market trade came as markets overseas showed a relatively negative picture. In Asia, stocks finished the session in the red, as political turmoil in Italy and a drop in crude futures weighed on sentiment.

 

We are all but done for the month of May and the old adage of “sell in May and go away” has weakened as measured by nineteen (19) sessions with twelve (12) positive,  six (6) negative closes and one (1) holiday;

  • In the last five  (5) sessions, the iShares NASDAQ Biotechnology (IBB) was up in four (4) session with a holiday on Monday after Friday’s +0.22%, Thursday’s +0.08%, Wednesday’s +0.15% and last  Tuesday’s +0.32%;
  • Friday’s decliners ranged from -0.21% <GBT -$0.10> to -6.11% <VSTM -$0.35 > in 21 equities;
  • Friday’s gainers ranged from +0.06% <FIXX +$0.06 > to +5.53% <BCLI +$0-.24 > in 18 equities;

 

The advance/decline lines (A/DL) have also been slipping since last Tuesday:

 

Last five (5) sessions:

  • Friday closed NEGATIVE with 21 decliners, 18 advancers and 6 flat;
  • Thursday closed POSITIVE with 18 decliners, 23 advancers and 4 flats;
  • Wednesday closed POSITIVE with 16 decliners, 28 advancers and 1 flat;
  • Last Tuesday closed POSITIVE with 16 decliners, 27 advancers and 2 flats;
  • Monday was Memorial Day!

 

Companies in my headlights:

Wait for the first hour! The question is whether traders will come back with their risk parameters are “ripe” to bet?

BioTime (NYSEMKT: BTX) closed down -$0.01 to $2.20 and has an upside indication (pre-market) of $0.04 or +1.82% on news of a new grant for 2018 of up to 6.9 million Israeli New Shekels (approximately $1.9 million) from the Israel Innovation Authority (the “IIA”). The grant provides funding for the continued development of OpRegen®, and to date the IIA has provided annual grants totaling over $13 million – BUY;

Mesoblast (MESO) closed up +$0.08 to $5.77 with 14.2 k shares traded <average 3 month volume = 46.6 K shares>. On news (above) – 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.