June 19, 2018 7:39am

The iShares Nasdaq Biotechnology (IBB) is indicating a -1.29% downside in Tuesday’s pre-market;

What goes overbought will come down and those left will go up when oversold


The times, they are a’changin!


Pre-open indications: 6 SELLs and 1 BUY


When RMi is right this many times about our sector in this market; it just confirms why one should subscribe to understand how today’s pre-open indications shed light on share pricing!

U.S. stock index futures are extremely lower

Dow futures are DOWN -1.38% (-346 points) and NASDAQ futures are DOWN -1.09% (-79 points)


U.S. stock futures fell sharply on Tuesday, as global equities careened lower on a fresh threat by President Trump to slap up to $400 billion more in tariffs on China goods, the latest escalation in a worrying trade dispute.

European markets were sharply lower

Chinese markets plunged on Trump's newest tariff threat: Shanghai was down -3.8%, Shenzhen fell -5.8%


Data docket: housing starts and building permits are due.



The moves in Tuesday’s pre-market came on the back of heavy losses seen across international markets. In Asia, stocks slid deep into the red by the close, while European markets posted steep losses during morning trading.

Easy come hard to go …

Yesterday, the Dow fell 103.01 points, or 0.4%, to 24,987.47, marking the fifth decline in a row and the longest such skid since a similar slump ended April 24. The S&P 500 index closed down 0.2%, and the NASDAQ finished up less than 0.1%, at 7,747.03.


Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a -1.29% downside in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a -0.82% downside in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is indicating a -0.54% downside in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a -0.75% downside in Tuesday’s pre-open


From Monday’s night’s newsletter: “the overbought are getting riper even as the session reduced losses with low volume to the upside and higher volume to the downside.”


June’s twelve (12) sessions – so far:

  • Monday closed NEGATIVE with 22 decliners, 20 advancers and 3 flats;
  • Friday closed POSITIVE with 16 decliners, 23 advancers and 6 flats;
  • Thursday closed POSITIVE with 18 decliners, 26 advancers and 1 flat;
  • Wednesday closed POSITIVE with 20 decliners, 22 advancers and 3 flats;
  • Tuesday closed POSITIVE with 17 decliners, 27 advancers and 1 flat;
  • Monday closed NEGATIVE with 26 decliners, 18 advancers and 1 flat;
  • Friday closed NEUTRAL with 22 decliners, 22 advancers and 1 flat;
  • Thursday closed NEGATIVE with 34 decliners, 9 advancers and 2 flats;
  • Wednesday closed POSITIVE with 17 decliners, 24 advancers and 4 flats;
  • Tuesday closed POSITIVE with 14 decliners, 30 advancers and 1 flat;
  • Monday closed POSITIVE with 18 decliners, 25 advancers and 2 flats;
  • Last Friday (June 1st) closed was POSITIVE with 15 decliners, 29 advancers and 1 flat;


Post Monday’s session, the iShares NASDAQ Biotechnology (IBB) was down -0.75% after Friday’s -0.11%, Thursday’s+0.81%, Wednesday’s-0.38% and last Tuesday’s +0.85% - I am anticipating another dip!

Tuesday’s theme for the session: seek cover of volume and strength; don’t SELL into a “sloppy” downside!

Of the 45 covered the 22 downside equities finished in a range of -$0.01 to -$2.15 with biggest bottoms of -$6.45 and $3.70 and $2.97 while the 20 upside equities oscillated from +$0.01 to $2.88 with a topper of $3.32 and 3 flat closes

  • Monday’s decliners ranged from -0.28% <STML -$0.05 > to -9.47% <BLCM -$0.94 > in 22 equities;
  • Monday’s gainers ranged from +0.43% <BTX +$0.01 > to +31.39% <VSTM +$2.05 > in 20 equities;


Companies in my headlights – It’s your decision; I provide the idea and context:

bluebird bio (BLUE) closed down -$6.45 or -3.52% to $176.65 with 1.13 M shares traded <3 month average = 741.6 K shares>. June started at $182.40; saw a high of $197.00 and a low of Monday’s $176.65. The question is will it “pop” in a BUY zone for being “cheap”- BUY

Verastem Oncology (VSTM) closed up +$2.05 to $8.58 with an aftermarket decline of -$0.03 or -0.35%. The “drama” of the incline begets an “Icarus” effect – SELL;

Gene editing stocks - CRSP (+$3.32 which is down -$0.93 or -1.48% in the pre-market), EDIT (+$1.73) and NTLA (+$1.56) are headed into SELL zone. NOT a trusting “sort, if you see them rising in the early open –SELL into strength;

uniQure N.V. (QURE) closed up +$1.82 to $37.62 and in the aftermarket is being sold off with a downside of -$0.70 or -1.86%. June 1st, QURE was $35.29, seeing a high of $37.62 and a low of $33.72. Also the chart looks “peaky” – an appropriate target especially with no news to sustain – SELL;

Solid Bioscience (SLDB) closed up +$2.88 to $29.39 (+10.87%) on news of the clinical hold being lifted by the FDA. Great but June started off at $21.70, saw a high of $29.38 through twelve (12) sessions – that’s $7.68 or a +26.14 % premium on the table – 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.