July 11, 2018 7:25am
Investors need to wake-up to the risk of peak pricing cycles
“And the list goes-on” - wasn’t that a song of exasperation or just another “etcetera”!
Day two at the Oppenheimer Boston Oncology Insight Conference – an extremely lluminating event and I am NOT one for superlatives!
Pre-open indications: 2 SELLs and 2 BUY
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 are set to tumble
Dow futures are DOWN -0.73%(-183 points) and NASDAQ futures are DOWN -0.79% (-58points)
U.S. stock index futures tanked ahead of Wednesday’s open, as a trade spat between the U.S. and other major economies intensified.
European markets sharply lower on trade war concerns;
Asian shares closed steeply down, with mainland China stocks taking the worst hits on Wednesday as trade concerns returned to focus.
Data docket: mortgage applications are due at 7 a.m. ET, followed by producer price index data at 8:30 a.m. ET and wholesale trade figures at 10 a.m. ET.
I LOVE titles that exposes the feeling of the sector to make many THINK of the fragilities of “our’ universe! Who wants to be the first to ask the question - WHY?
It’s a question of sorting-out the useful from pointless data in an investment decision in this market!
And then there are the trade anxieties ramping-up again after President Trump and his administration published late Tuesday a list of 10% duties on $200 billion worth of Chinese goods. The tariffs won’t come into effect immediately, but rather face a review process, with hearings taking place in mid-to-late August.
Then it’s a question of sorting-out the “bluff” and a deal!
- The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a -0.94% decline in Wednesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Wednesday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a -0.65% downside in Wednesday’s pre-open
From Tuesday’s night’s newsletter: “the sector socked it to investors … what went up came down – the consequence of suffering from short-termism! It was a race but, the baton got dropped after four (4) positive closes and a holiday in between>”
I also stated, “It was coming; I’ve been raising the alarm, about a false sense of confidence without getting too wonky – algorithms ruled.”
The iShares NASDAQ Biotechnology (IBB) was DOWN -0.17% after Monday’s +0.52%, Friday’s 3.78%, Thursday’s +1.26% post last Wednesday’s holiday … with a positive aggregate of +5.3% - I still anticipate some 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 Tuesday; 29 downside equities finished in a range of -$0.01 (MESO) to -$4.27 (ONCE) while the 15 upside equities oscillated from +$0.007 (KOOL) to $4.50 (BLUE) with 1 flat close.
- Tuesday’s decliners ranged from -0.11% <VYGR -$0.02 > to -17.44% <BSTG -$0.75 > in 29 equities;
- Tuesday’s gainers ranged from +0.16% <KOOL -$0.007 > to +7.88% < VSTM +0.57> in 15 equities;
Companies in my headlights – It’s your decision; I provide the idea and context:
Asterias Biosciences INYSEMKT: AST) closed up +$0.10 to $1.55. Today has news of its Safety Review Committee (SRC) for the first clinical trial of AST-VAC2, held a scheduled meeting to review the safety and tolerability data generated in the first patient enrolled in the study and recommended continuation of the study and moving to parallel enrollment of the second and third patients in the advanced cancer cohort (Arm A), as planned per the study’s protocol. This initial clinical trial, which is being sponsored, managed and funded by Cancer Research UK under a collaboration between Asterias and Cancer Research UK, will examine the safety and tolerability of AST-VAC2 in non-small cell lung cancer (NSCLC) as the study’s primary endpoints. Secondary and tertiary endpoints of the study include evaluations of the immunogenicity of AST-VAC2 in NSCLC. News is usually a positive – BUY:
CRISPR Therapeutics (CRSP) closed down -$1.00 to $62.21 after Monday’s +$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 – the aftermarket indicates a negative -$0.41 or -0.66% - Maintaining SELL;
Editas Medicine (EDIT) closed down -$0.42 or -1.09% to $37.97 after Monday’s +$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. The aftermarket indication is a negative -$0.17 or -0.45% - Maintaining SELL:
Spark Therapeutics (ONCE) closed down -$4.27 to $88.12 with 533.8 K shares traded <3 month average = 566.6 K shares>. OVERSOLD followed by a positive aftermarket indication of +0.38 or +0.43% - 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.