June 21, 2018 8:25am
Where the overbought and oversold play,
Where seldom is heard a fair value word,
And the indexes are not up each day.
Pre-open indications: 5 SELLs and 2 BUY
When RMi is right more frequently than not about “our” sector pricing and it is first in reporting price changing news; 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 mixed
Dow futures are DOWN -0.22% (-54 points) and NASDAQ futures are UP +0.08% (+6 points)
US stocks set for a negative open
European markets were higher
Asian stocks closed mixed with China markets falling once more despite a mostly calmer backdrop after an elevation in trade tensions between the U.S. and China earlier in the week.
Data docket: jobless claims and the Philadelphia Fed's manufacturing business outlook survey are both due out at 8:30 a.m. ET, followed by FHFA house price index data at 9 a.m. ET.
Henry’omics:
The moves in premarket trade came after a wild couple of sessions on Wall Street. Markets across the globe have been on edge in recent days with the ongoing trade spat between the U.S. and China.
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Thursday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a +0.39% upside in Thursday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Thursday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a +0.02% upside in Thursday’s pre-open
Thursday’s theme for the session: Caution
From Wednesday’s night’s newsletter: “what’s considered expensive in the sector? After an all-time high again for the NASDAQ; the sector inclines, are you ready for the disappearing trick? The specifics of value are based on pricing that exists in indexes, but has yet to be realized.”
I also stated after defining equity, market and book value, “So, how many variables have you read and still have QUESTIONS on computing and realizing value!” And, “There are still some overbought that could be taken down.”
Re-capping Wednesday's session:
Post Wednesday’s session, the iShares NASDAQ Biotechnology (IBB) was up +1.66% after Tuesday’s +1.46% after Monday’s -0.75% after Friday’s -0.11% and last Thursday’s+0.81% - I am still anticipating a dip after the week’s (so far) upside of +3.07%!
Of the 45 covered the 11 downside equities finished in a range of -$0.04 to -$0.60 with biggest drop of -$7.33 while the 31 upside equities oscillated from +$0.01 to $2.72 with 7 toppers ranging from $2.86 to $17.00 with 3 flat closes
- Wednesday’s gainers ranged from +0.06% <XON +$0.01> to +30.71% <CLBS +$2.03 > in 31 equities;
- Wednesday’s decliners ranged from -0.28% < STML -$0.05> to -17.05% <SLDB -$7.33> in 11 equities;
Companies in my headlights – It’s your decision; I provide the idea and context:
Caladrius Biosciences (CLBS) closed up again +$2.03 to $8.64 with 12 M shares traded <3 month average = 82.1 K shares> after Tuesday’s +$2.66 or +67.34% to $6.61 with 3.91 M shares traded. The aftermarket indication is an upside of +$1.58 or +23.9%. June began at $3.99, saw $4.07 twice on 6/13 and 6/15; I wouldn’t be surprised if CLBS didn’t roll-out an offering since it has only 9.4 M shares outstanding? With the aftermarket seeming light; I “see and feel” weaknesses but, enjoy the ride while it lasts but, it will decline –BUY to SELL;
CRSPR Therapeutics (CRSP) closed up +$3.20 to $65.26 with 1.361 M shares traded after Tuesday’s drop of -$0.57 to $62.06 with 1.3 m shares traded <3 month average = 1.615 M> and is down in the aftermarket another -$0.56 or -0.90%. June opened at $67.13; saw a high of $68.15 and a low of $59.06. An “Icarus” candidate – Maintaining SELL;
Fate Therapeutics (FATE) closed up +$1.17 to $13.48 with 1 M shares traded <3 month average = 618.8 K shares>. June opened at $10.91; saw the $1139 to $11.79 changes - seven times in the month and a premium of $2.05 or +15.2% in three 93) sessions – my “get out of Dodge” percentage (%). The aftermarket indication is a downside of -$0.08 or -0.59% with a low of $12.748 – SELL;
Verastem Oncology (VSTM) closed down -$0.23 to $8.44 after Tuesday’s +$0.09 to $8.67 after Monday’s +$2.05 to $8.58 with an aftermarket decline of -$0.06 or -0.71%. The “drama” of the incline also begets an “Icarus” effect – Maintaining SELL;
uniQure N.V. (QURE) closed up again +$1.72 to $39.94 after Tuesday’s +$0.60 to $38.22 after Monday’s +$1.82 to $37.62. 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 it – Maintaining SELL;
Solid Bioscience (SLDB) closed down -$7.33 to $35.67 after being up on Tuesday +$13.62 to $43.00 after Monday’s +$2.88 to $29.39 (+10.87%) on news of the clinical hold being lifted by the FDA. The aftermarket indication is an upside +$0.48 or +1.35%. Change of the oversold “cookie” –SELL to BUY;
Voyager Therapeutics (VYGR) closed down -$0.60 to $21.17. The U.S. FDA granted Regenerative Medicine Advanced Therapy (RMAT) designation for Voyager’s VY-AADC gene therapy treatment for Parkinson’s disease in patients with motor fluctuations that are refractory to medical management. The RMAT designation was based on our Phase 1b clinical data with VY-AADC and represents an important milestone for the program and recognition of this gene therapy as a potential treatment for Parkinson’s disease – 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.
