September 25, 2018 8:02am
Thinking outside the “box” of as seen in the rises and declines of the Advance/Decline Line
Considering the trading ranges and the volume that got it there
And for one, an upside swing of a comparable (NITE) for AGTC since they can’t get there on their own
Pre-open indications: 3 SELLs and 2 BUYs
What is fair game as defined by legitimate equities to trade?
RMi provides a pre-market synopsis for the U.S. trading day.
U.S. stock index futures are ticking higher
Dow futures are UP +0.27% (+73 points) and NASDAQ futures are UP +0.16% (+13 points)
U.S. stock index futures eked out gains ahead of Tuesday's open
European stocks traded mostly higher
Asia markets were broadly negative, amid concerns over the ongoing trade spat between the U.S. and China.
Data docket: the Philadelphia Fed's Non-manufacturing Business Outlook survey is set to come out at 8:30 a.m. ET; followed by the S&P Corelogic Case-Shiller House Price Index and the FHFA House Price Index at 9 a.m. ET; consumer confidence figures and the Richmond Fed's Survey of Manufacturing Activity at 10 a.m. ET; and the Dallas Fed's Texas Service Sector Outlook survey at 10:30 a.m. ET.
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 in Tuesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is indicating a +0.12 UPSIDE in Tuesday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a +0.25% UPSIDE in Tuesday’s pre-open
Henry’omics:
Political turmoil is keeping investors on edge!
There doesn't seem to much drama left in recieving an approva i.e. Verastem Oncology (VSTM) only jumped +$0.24 ... I would have expected more!
I always want to know what happened PRIOR to what might happen today – it sets a tone of consequence:
From Monday’s night’s newsletter: “it was time for the sector to regenerate. The sector recovered but, the combinations of high I-Bank valuations inability to be met, generally low volumes, easy liquidity and lack of confidence as the month and Q3 comes slowly to an end; the sector can only go backwards without news and comparable stimulating events – over the next weeks!”
Of the 45 companies covered on Monday;13 downside equities finished in a range of -0.21% (BMRN) to -7.22% (BTX) while 28 upside equity oscillated from +0.05% (VYGR) to +% () with 4 flat closes (BOLD, RENE.L, CUR and PSTI).
The iShares NASDAQ Biotechnology (IBB): history lesson
- Monday closed up +1.19%
- Friday closed down -0.62%
- Thursday closed up +1.39%
- Wednesday closed up +0.13%
- Tuesday closed up +1.12%
- For a five session aggregate of +3.21% - consider a sideways move!
In 15 sessions in September (so far) – there were 7 negative closes and 8 positive close;
In 21 August sessions – 6 had negative and 15 positive closes
Companies in my headlights – It’s your decision; I provide the idea and context:
Applied Genetic Technologies (AGTC) closed up +$0.60 to $5.00 on the basis of a comparables (Nightstar Therapeutics (NITE) which was based on released initial data from a P1/2 study of its product candidate NSR-RPGR that showed multiple patients achieved an improvement in microperimetry, Wells Fargo analyst Birchenough said in the upgrade note – “with the stock is trading below its cash on hand and at a discount to Nightstar, AGTC has a favorable risk-reward profile” according to Wells Fargo – is it a “push” to solidify Wells Fargo position as a banker for an offering that AGTC needs to finance? AGTC has had clinical issues over the past two years, late to enroll, suddenly a whole new team to monitor and measure and what if NITE gets a pivotal advance from the FDA to advance, they’re still late to the “party”. Spikes come easy and go as quick with data projected maybe at the end of 2018 or early 2019 – SELL;
CRISPR Therapeutics (CRSP) closed up +0.76 to $45.26 and is showing signs, the dollar value after raising an offering (priced at $47.50) and pre-market is up +$0.22 or +0.49%; the expectation was a 9/25 close – BUY;
Intrexon (XON) closed up +$4.57 to $19.07 a +31.52% jump which hasn’t been seen in a long while – a “pot pandemonium”? Engineering mosquitoes and salmon didn’t capture investors’ imagination for Intrexon Corp. So now it’s looking to join the marijuana frontier. After an “Icarus” move, traders will look to trim their wings with a pre-market indication of -$0.41 or -2.15% - SELL;
Vericel (VCEL) closed up another +$0.70 to $14.80 and looks a little too pricy. It has jumped from $12.35 on 9/12 – so in nine (9) sessions, there is a premium of $2.45 or +17% - time to lighten the load – SELL;
Verastem Oncology (VSTM) closed up +$0.24 to $8.89 and is up again in the pre-market +$0.26 or +2.92% as VSTM won FDA approval for a treatment for multiple types of blood cancer. The FDA on Monday gave the green light for sales of Copiktra, an oral medication designed to block two types of enzymes that fuel the growth and survival of malignant white blood cells. The drug has been approved for use in multiple types of blood cancers, including chronic lymphocytic leukemia and small lymphocytic lymphoma – 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.
