June 25, 2018 8:03am

While June whittles away, Q2 is coming to an end as the IBB indicated a -0.66% decline

Lately what are the rousing factors in the sector – resistance and algorithmic “rules”!

 

Pre-open indications: 5 BUYs and 1 SELL

RMi is first in reporting the pricing component of pre-open indications that shed light on share value!

 

U.S. stock index futures are tumbling 

Dow futures are DOWN -0.71% (-174 points) and NASDAQ futures are DOWN -0.90% (-65 points)

 

U.S. stock index futures tumbled deep into the red ahead of Monday’s open, following negative trade as seen in markets overseas,

European markets were sharply lower on trade and migration concerns,

Asia markets were mostly down on Monday afternoon about trade tensions between the US and China.

 

Data docket: at 10 a.m. ET, new home sales data is scheduled to be published, followed by the Dallas Fed's Texas manufacturing outlook survey at 10:30 a.m. ET.

 

Henry’omics:

 

As another trading week kicks off, sector-watchers are likely to be NOT seeing any market shattering news as the month and quarter is coming to an end!

Last week, The NASDAQ fell 0.3%, for a slight loss for the week. The Russell 2000 — which, like the NASDAQ, also has a big weighting in techs — fell 0.3%. The Dow snapped an eight-day losing streak, adding 0.5%. The S&P 500 rose 0.2% but still finished down modestly for the week.

I don’t have MUCH expectation for the week!

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a -0.66% downside 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 a -0.31% downside in Monday’s pre-open

 

From Friday’s night’s newsletter: “action and reaction; the good, the bad and the ugly; Friday opened down and closed to the upside as momentum fluctuated. Investors need to focus on volumes which easily move the sector to evaluate their speculative positions.”

I also stated, “Friday's close marked the roller-coaster ride this week in trading as algorithmic tensions mounted. Short-term overbought and oversold conditions set the tone of the sector!”

The iShares NASDAQ Biotechnology (IBB) was down -0.34% after Thursday’s -1.13%,  Wednesday’s +1.66%,  Tuesday’s +1.46% and last Monday’s -0.75%

Of the 45 companies covered the 19 downside equities finished in a range of -$0.03 to -$0.97 followed by 4 of the biggest bottoms  ranging from -$2.36 to $18.45 while the 24 upside equities oscillated between +$0.02 to $2.00 with 1 top or above the range of $3.65 and 2 flat closes.”

Friday’s decliners ranged from -0.64% <SLDB -$0.27> to -10.34% <CUR -$0.12> in 19 equities;

Friday’s gainers ranged from +0.46% <VCEL +$0.05 > to +9.46% <BLFS +$1.09> in 24 equities;

In my universe of 45 companies, I have seen, in the month of June (so far): 10 positive, 5 negative and 1 neutral closes – not quite a roller-coaster but, too random for any pattern to be discerned.

There were sessions where the market was down and the sector up as well as the reverse.  Sentiment is like a handkerchief, you pull it out when you want to sneeze of blow your nose – an appropriate metaphor!

 

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

BioTime, Inc. (NYSE American: BTX) closed up +$0.05 to $2.35 on Friday and has opened with news of a license of one of its pluripotent cell lines to Goliver Therapeutics, a France-based company focused on addressing liver diseases with regenerative technologies. The terms of the agreement were undisclosed, but include an upfront payment, potential development milestone payments and royalties on sales of commercialized products – BUY;

Homology Medicines (FIXX) closed up +$0.94 to $20.75 on Friday has been added to the Russell 3000® Index and Russell 2000® Index effective after the market opens today. Homology's membership in the Russell US Indexes is determined primarily by objective, market-capitalization rankings and style attributes – SELL;

Pluristem Therapeutics (PSTI) closed (Friday) up +$0.02 to $1.26. PSTI rose $0.02 or 1.59% in premarket trading on Monday, after reporting positive results in a trial of a treatment for radiation. A new study conducted with Fukushima Medical University of its PLX-R18 cells as a treatment for radiation damage to the gastrointestinal tract and bone marrow found that they significantly increase survival rates, preserve GI stem cells activity that improve the recovery of the system and prevent severe damage to the intestinal lining. The company said the cells may have potential as a multi-organ treatment for acute radiation syndrome, or ARS – BUY;

Stemline Therapeutics (STML) closed down -$0.55 to $16.55 on Friday and has completed submission of a rolling Biologics License Application (BLA) to the U.S. FDA for ELZONRISTM (tagraxofusp; SL-401), a potential treatment for patients with blastic plasmacytoid dendritic cell neoplasm (BPDCN), a CD123+ malignancy of unmet medical need for which the agent was awarded Breakthrough Therapy Designation (BTD). This BLA submission has been completed. ELZONRIS is also being evaluated in clinical trials in additional indications including chronic myelomonocytic leukemia (CMML), myelofibrosis (MF), acute myeloid leukemia (AML), and myeloma – BUY;

Verastem Oncology (VSTM) closed flat at $7.66. VSTM will join the broad-market Russell 3000® Index at the conclusion of the Russell US Indexes annual reconstitution, effective upon the US market open on Monday, June 25, 2018. Membership in the Russell 3000® Index remains in place for one year and means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index as well as the appropriate growth and value style indexes – 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.