July 10, 2018 7:55am

Sector rallies are not near or long-term phenomenal

That’s why sector investing is a BUY/SELL exchange followed by the SELL/BUY reverse  

 

Pre-open indications: 4 SELL

 

RMi reports the pricing component of pre-open indications that shed light on share pricing events and its follow-on value!

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U.S. stock index futures edge higher

Dow futures are UP +0.30% (+75 points) and NASDAQ futures are UP +0.28% (+21 points)

 

U.S. stock index futures posted mild gains ahead of Tuesday’s open, supported by positive trade overseas.

Europe markets were higher

Asian stocks closed higher as trade concerns took a back seat.

 

Data docket: at 10 a.m. ET, a May reading on job openings is scheduled for release.

 

Henry’omics:

 

I worry that “our universe” may be growing too overbought to make “them” a sustainable investment.

While concerns surrounding a trade spat between the U.S. and other major economies continue to weigh on sentiment, investors will likely be turning their attention to earnings and news coming from overseas.

Good day for out-of-office meetings and coming-out  with surprises!

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating n Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a +0.14% upside in Tuesday’s pre-open

 

From Monday’s night’s newsletter: “hocus, pocus, who has our focus, not the trade war. Funny thing happened at the session’s 10 a.m. hour … the advance/decline line (A/DL) “floor” trembled from under it and then continued to wobble to come back at the close barely positive!”

I also stated, “The fact that we're heading into Q2 earnings season is a downside catalyst for equities, cash, ATM positions and stock compensation losses are going to be visible. I’m expecting it to be WEAK with LPS (loss-per-share) numbers to be increasing and maybe even “weedy” than the previous Q1/18.”

The iShares NASDAQ Biotechnology (IBB) was UP +0.52% after Friday’s 3.78%, Thursday’s +1.26%, Wednesday’s holiday and last Tuesday’s -0.09% … with a positive aggregate of +5.47% - I still “smell” weaknesses … a contrarian affliction.

I always want to know what happened PRIOR to what might happen today – it sets a tone of consequence!

Of the 45 companies covered on Monday; 18 downside equities finished in a range of -$0.01 (MDXG) to -$1.25 (VYGR) while the 22 upside equities oscillated from +$0.01 (MESO) to $3.05 (BLUE) with 5 flat close.

  • Monday’s decliners ranged from -0.30% <MDXG -$0.01 > to -6.35% >VTGR -$1.25> in 18 equities;
  • Monday’s gainers ranged from +0.23% <MESO +$0.01 > to +1.79% <BLUE +$3.05 > in 22 equities;

 

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

 

bluebird bio (BLUE) closed up +$3.05 to $173.00 with 592.3 K shares traded <3 month average = 811 K shares> after Friday’s +$7.75 to $169.95 with 1.146 M shares traded after Thursday’s +$4.75 to $162.20 with 492.2 K shares traded. There is approximately a +$19.15 or a +10.69% premium in BLUE’s equity. Is it time or do we let it roll in these current market conditions? Specifically, a number of companies are working on therapies that could chip away at the commercial opportunity for its drugs, including LentiGlobin, a gene therapy for beta thalassemia. Patients with this disorder can't produce beta globin, and as a result, they require regular red blood cell transfusions that expose them to risks, including organ-damaging iron overload. After hitting record all-time highs in March, shares of BLUE might be ready – again - Maintaining SELL;

What has gene editing shown us to date – I haven’t seen or have heard ground breaking RESULTS, just a could’a or might be platform.”

CRISPR Therapeutics (CRSP) closed up +$0.33 to $63.21 after Friday’s +$1.14 to $62.88 with 651.65 K shares traded <3 month average = 1.59 M shares) after Thursday’s +0.48 to $61.74 with 837.7 K shares traded after Wednesday’s holiday and Tuesday’s +$1.21 to $61.26 with 1.6 M shares traded after Monday’s $60.05 (+$1.29) having ended June at $58.76 and started at $67.13 with a low of $57.00.–  The “music” has to stop sooner than later -Maintaining SELL;

Intellia Therapeutics (NTLA) closed down -$0.08 to $31.36 with 843.6 K shares traded after Friday’s  +$1.78 (+6%) to $31.44 with 853.8 K shares traded <3 month average = 940.8K shares> after Thursday’s +$0.84 to $29.57 with 508.9 K shares traded after Monday’s $28.73 (+$1.37) and Monday’s +$28.73 while ending June at $$27.36 and started at $25.45 with a low of $24.94 and a high of $30.79 - Maintaining SELL:

Editas Medicine (EDIT) closed up again +$0.45 to $38.39 with 792.4 K shares traded after Friday’s +$1.01 to $37.94 with 6.01.8 k shares traded <3 month average = 1.016 M shares>after Thursday’s +0.01 to $36.83 with 734.5 K shares traded after Wednesday’s holiday and Tuesday’s -$0.17 to $36.82 with 441.9 K shares traded after Monday’s $36.99 (+$1.16).  EDIT ended June at $35.83 and opened (June) at $37.01; saw a high of $41.01 and a low of $35.68. - 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.