August 22, 2018 7:46am

Disruption comes in many forms - watch momentum to make sense of volatility

 

Pre-market indications: overbought - seven (7), oversold - two (2)

 

A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.

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U.S. stock index futures are pulling back

Dow futures are DOWN -0.09% (-24 points) and NASDAQ futures are DOWN -0.02% (-2 points)

 

U.S. stock index futures are in the red ahead of Wednesday's open

European markets were mixed with sectors and major bourses pointing in opposite directions,

Asia markets were mixed as US politics and tariff talks in focus

 

Data docket: mortgage applications are due out at 7 a.m. ET, followed by existing home sales at 10 a.m. ET. The minutes from the latest Federal Open Market Committee (FOMC) meeting, which took place at the turn of the month, will be published at 2 p.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a -0.02% DOWNSIDE 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 -0.24% DOWNSIDE in Wednesday’s pre-open

 

Henry’omics:

The sector is experiencing some new highs but, the trading piranhas are circling smelling blood from the upside!

One of the few things keeping some equities robust is … recently announced cash positions.

Remember we are slipping into the final month of Q3 and some of this low volume upside euphoria could be siphoned-off as quick as it came

Markets around the world pointed in different directions Wednesday as investors’ awaited news from trade talks between the U.S. and China.

 

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

From Tuesday’s night’s newsletter: “In the short run, “the market is a voting machine but in the long run it is a weighing machine” – if investors can make it to the scale!”

  • The iShares NASDAQ Biotechnology (IBB): Tuesday closed up +0.93% after Monday’s -0.17%, Friday’s +0.02 %, Thursday’s +0.77% and last Wednesday’s -1.56% for a five session aggregate of 0.00% - I am NOT feelin' the love!
  • Of the 45 companies covered on Tuesday; 9 downside equities finished in a range of -0.26% (ONCE) to -5.38% (HSGX) while the 36 upside equities oscillated from +0.06% (BLUE) to +16% (BLFS) with 0 flat close.

August’s measurement:

  • Of the past 5 sessions – 4 had closed positive,
  • Of the past 10 sessions – 3 had closed negative
  • Of the 15 August sessions – 5 had negative and 10 positive closes

 

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

…. Everyone deserves a vacation – I keep trying!

Overbought:

  • Applied Genetic Technologies (AGTC)
  • BioLife Solutions (BLFS),
  • CRISPR Therapeutics (CRSP),
  • Editas Medicine (EDIT),
  • Caladrius Bioscience (CLBS),
  • Intellia Therapeutics (NTLA),
  • Verastem Oncology (VSTM)

Oversold:

  • Audentes Therapeutics (BOLD),
  • Histogenics (HSGX)

 

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.