October 3, 2018 8:07am

… A rebound is due, as I had stated “I’m still cautious yet, waiting for some of the oversold to “value-up”, maybe today, tomorrow - likely if not by Friday”

Pre-open Indications: 2 BUYs and 2 SELLs

 

RMi outlines preludes and aftermaths; I won’t apologize for being a “Devil’s Advocate” challenging views or consensus by building a possible case for alternative explanations - SUBSCRIBE!

U.S. stock index futures are … RISING!

Dow futures are UP +0.28% (+76 points) and NASDAQ futures are UP +0.37% (+28 points)

 

U.S. stock index futures ticked higher ahead of Wednesday's open as investors awaited the release of fresh economic data.

European markets moved higher, as markets players kept an eye on Italian politics and spending plans.

Asia markets were mostly lower while in Hong Kong, the Hang Seng index saw a partial recovery from its earlier losses but remained lower

 

Data docket: TADP National Employment Report is scheduled for release at 8:15 a.m. ET, followed by service purchasing managers' index at 9:45 a.m. ET, and ISM non-manufacturing data at 10 a.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 +0.12% UPSIDE in Wednesday’s pre-market;

  • The Health Care Select Sector SPDR ETF (XLV) is a +0.04% UPSIDE indicating in Wednesday’s pre-open;

  • The iShares Russell 2000 (IWM) is indicating a +0.46% UPSIDE in Wednesday’s pre-open

 

Henry’omics:

U.S. markets (futures) appear to be getting a boost from a strong Tuesday session, when the Dow closed up over 120 points, and from a positive session in Europe after the NASDAQ dipped.

Investors are also distracted and side-tracked by political developments; some about Canada and China but, every hour there is a new revelation about the Kavanaugh hearings – the latest a letter by an old flame of Christine Ford as well as the New York Times article about President Donald Trump and his family's business dealings.

I would like to hear and read about ANY positive happenings to boost the sector …

The reality is … "Our” universe should be bracing for a grim financial reporting season, notice I didn’t earnings!"  

 

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: “what’s today excuse for the downturn again?  NASDAQ is barely up while Dow overheats … as I had stated, “Is it risk, sentiment or just plain volatility and time to skim any upside from sector participants?” How about sector fatigue and the lack of support?”

Of the 45 companies covered on Tuesday; 31 downside equities finished in a range of -0.49% (XON) to -17.79% (MESO) while 12 upside equity oscillated from +0.25% (RARE) to +10.29% (KOOL +$0.03) with 2 flat close (AST and BSTG).

The iShares NASDAQ Biotechnology (IBB): a week’s history lesson; for a five session aggregate of +1.01% - consider an upside shoot!

  • In 2 sessions in October (out of 1) – there were 2 negative closes
  • In 19 sessions in September – there were 10 negative closes and 9 positive close;
  • In 21 August sessions – 6 had negative and 15 had positive closes

 

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

Alnylam Pharmaceuticals (ALNY) closed down -$1.13 to $87.20 after Monday’s +$0.81 to $88.33 and is up in the aftermarket +$0.02 or +0.03%. Will it continue to be momentum driven? – Maintaining BUY;

CRISPR Therapeutics (CRSP) closed down again -$2.62 to $39.72 after Monday’s -$2.01; I still believe CRSP is OVERBOUGHT. 52 week change for CRSP = +141.16%. There is a negative aftermarket indication of -$0.36 or -0.91% with a lot of room for downside – Maintaining SELL;

Sangamo Therapeutics (SGMO) closed down -$1.59 to $15.01 and has an aftermarket indication of -$0.15 or -1% after the acquisition of ordinary shares of TxCell (TXCL.PA), at a price of €2.58 per share in cash, representing approximately 53% of the share capital and voting rights of TxCell. TxCell will now operate as a subsidiary. SGMO will file on a cash simplified tender offer for the purchase of all then outstanding ordinary shares of TxCell with SGMO launching a squeeze-out procedure. TxCell's operations will remain based in Valbonne, France - SELL

Verastem Oncology (VSTM) closed up +$0.16 to $6.67 after Monday’s -$0.74 to $6.51 with a FDA approval and Chinese collaboration has been subjected to trading pressures and OVERSOLD and has an aftermarket indication of +$0.18 or +2.70% -Maintaining 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.