June 29, 2018 8:03am

With the sector in the toilet, a holiday mid-week, low volume weighted to the downside; a development of almost any kind could be a miracle!

The sole provision is what constitutes speculation; maybe a strengthening advance/decline line (A/DL) could or should be the basis for the oversold to stage a mild comeback

 

Pre-open indications: 1 SELL

 

I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors in the perception of sector vulnerabilities and strengths.

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

U.S. stock index futures are jumping

Dow futures are UP +0.43% (+105 points) and NASDAQ futures are UP +0.43% (+31 points)

 

U.S. stock index futures pointed to a higher open on Friday, but were still headed for weekly losses as the underlying market sentiment was soured by anxiety over global trade frictions <CNBC>.

European markets rally after EU migration deal in a hesitant agreement on migration

Asian markets gained on the last trading day of the quarter. Sentiment appeared to improve as China markets recovered after a recent slump, although trade tensions simmered.

 

Data docket: Personal income data for May is scheduled to be released at around 8.30 a.m. ET, with a final reading of consumer sentiment data for June due later in the session.

 

Henry’omics:

 

Despite the gains before the bell, however, the major indexes are on track to close lower for the week. The sector will continue to be “pinched” with many a gain of the oversold!

From the title, a dictionary definition of “indicate” refers to something less than a certainty; an indication could be a signal, an oversold or overbought symptom, a recommendation, or grounds for inferring or a basis for believing.

I always return to my basis of writing or action; “that warning analysis is NOT a commodity. Warning is an intangible, an abstraction, a deduction, a perception, a belief. It is a product of REASONING or of logic, a hypothesis whose validity can be neither confirmed nor refuted until it is too late.”

However, there are times, when volume is evidence … that points to the likelihood of a conclusions being inescapable!

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Friday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating 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 a +0.35% upside in Friday’s pre-open

 

From Thursday’s night’s newsletter: “another wild ride as rotation continued to envelope the sector as I had stated, “there is an opportunity for some oversold to improve”, the advance/decline line (A/DL) moved actively from yesterday’s carnage.”

As I had stated, “Volume was low but, HIGHER in downside moves as compared to 3 month averages! Sector equities have been under pressure this week, as trade tensions affect the markets – while, the quarter ends and the sector prepares for the summer months.”

The iShares NASDAQ Biotechnology (IBB) was up +0.57% after Wednesday’s  -2.04%,  Tuesday’s -0.43%, Monday’s -1.81% and last Friday’s -0.34% … with a negative aggregate of -5.18% - look for some upside even with the month and quarter’s ending.

In my universe of 45 companies, I have seen, in the month of June (so far): 11 positive, 8 negative closes and 1 neutral close.

Of the 45 companies covered on Thursday; 26 downside equities finished in a range of -$0.02 to -$1.46 while the 16 upside equities oscillated from +$0.24 to $4.61 with 3 flat close.

  • Thursday’s decliners ranged from -0.05% <IONS -$0.02 > to -6.71% <VYGR -$1.46 > in 26 equities;
  • Thursday’s gainers ranged from +0.24% <SAGE +$0.24 > to +13.58% <QURE +$4.61 > in 16 equities;

 

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

Global Blood Therapeutics (GBT) closed up +$2.70 to $47.45 after Wednesday’s +$6.05 to $44.75 and has a negative aftermarket indication of -$0.74 or -1.57%. GBT’s experimental drug had met the main goal of a late-stage trial testing it in patients with sickle cell disease. After a three day rise of +$8.75 or -18.44% premium, a target appears on its back – BUY to 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.