June 1, 2018 7:36am

The iShares Nasdaq Biotechnology (IBB) is indicating an upside of +0.36%; the SPDR S&P Biotech ETF (XBI) is indicating in an upside of +0.61%; the iShares Russell 2000 (IWM) is indicating an UPSIDE of +0.55% without the Health Care Select Sector SPDR ETF (XLV) which is NOT indicating in Friday’s pre-open;

 

Pre-open indications: 2 BUY and 2 SELL

Financing: Vericel (VCEL) prices 5 M share offering at $13.00 (the stock tradeds at $13.45) to raise $65 M as shares and overallotment are dramatically increased – a good (demand) sign yet SELL!

 

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

 

Get set for a positive opening 

Dow futures are UP +0.54% (+131 points) and NASDAQ futures are UP +0.40% (+29 points)

 

US stocks set for a slight rebound after Trump tariffs fuel trade-war fears

European markets rallied after Italian parties averted the prospect of a snap election, although renewed fears of a global trade conflict appeared to limit gains.

Asian markets were mixed on Friday amid investor concerns over trade. Markets were cautious after the U.S. announced tariffs on steel and aluminum imports would be reapplied on Mexico, Canada and the European Union.

 

Data docket: the release of May nonfarm payrolls as markets consider how many times the Federal Reserve will raise rates this year. There will also be a manufacturing PMI due out at 9:45 a.m. ET and construction spending data at 10:00 a.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating an upside of +0.36% in Friday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating in an upside of +0.61% in Friday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Friday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating an UPSIDE of +0.55% in Friday’s pre-open

 

Henry’omics:

From Thursday’s night’s newsletter: “the upside softened as investors are leaving, algorithms are ruling and traders are doing what they do - betting the risk and spreads for a ROI.”

I also stated, “Sector equities ended May on a sweet note, major indexes posted monthly gains, with the small-cap Russell 2000 outpacing its large-cap rivals. What’s really happening, investors are getting hit with divergent risk scenarios! June swoon?”

 

Friday's moves: I'd be buying some low riders and and selling more of the upsiders to build up cash for June "swoons"!

 

We are done for May with twenty two (22) sessions with fourteen (14) positive,  seven (7) negative closes and one (1) holiday;

  • In the last five  (5) sessions, the iShares NASDAQ Biotechnology (IBB) was up in three (3) session, down in two (2) after Thursday’s -0.06%, Wednesday’s +1.34%, Tuesday’s -0.45%, Monday’s holiday and last Friday’s +0.22%– it’s courting for an upside – today +0.36%;
  • Thursday’s decliners ranged from -0.29% <BMRN -$0.26 > to -6.36% <CRSP -$4.68 > in 18 equities;
  • Thursday’s gainers ranged from +0.15% <FIXX +$0.03 > to +67.39% < AXGN +$2.95> in 24 equities;

 

Last five (5) sessions:

  • Thursday (May 31) closed was POSITIVE with 12 decliners, 31 advancers and 2 flats;
  • Wednesday closed was POSITIVE with 12 decliners, 31 advancers and 2 flats;
  • Tuesday closed NEGATIVE with 27 decliners, 15 advancers and 3 flat;
  • Monday was a holiday
  • Last Friday closed NEGATIVE with 21 decliners, 18 advancers and 6 flat;

 

Companies in my headlights:

bluebird bio (BLUE) closed down -$3.75 to $179.05 after Wednesday’s  -$3.40 to $182.80 with 664.9 K shares traded <3 month average = 720.3 K shares>. Could there be “safety” for an upside after six (6) downturns in BLUE’s stock – BUY;

CRISPR Therapeutics (CRSP) closed down -$4.68 to $68.91 after Wednesday’s $68.91, Tuesday’s $69.94 and last Friday’s $69.65 with a downside aftermarket response of -$10.59 or -14.39% as the FDA put the brakes on an upcoming gene editing trial affecting CRSP and Vertex. The aftermarket indication has an upside of $0.52 or +0.75% – SELL to BUY;

Editas Medicine (EDIT) closed up +$0.39 to $38.32 with 1.29 M shares traded after Wednesday’s +$2.28 to $37.93 with 979.1 k shares traded <3 month average = 1.24 M shares>. There is a $5.03 or +15.2 % premium in the share pricing since May 1st. June is a month to put some cash/fire power in the portfolio - Maintaining SELL

Vericel (VCEL) closed down -$0.50 to $13.45. The $13.00 pricing of the 5 M share offering with a 750 K overallotment (dramatically increased) increased the “take” to $65 M. There is still a $0.45 difference and a downside aftermarket of -$0.15 or -1.12% – 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.